Strategic Planning Process For Successful Businesses

1430 Words6 Pages
Strategic Planning In the business world, strategic planning is an essential process for successful businesses, which helps to shape their future path. Unlike other planning methods, strategic planning is a long term planning process which can include a tree to five year look-ahead. Strategic planning is used to give all employees, including management, focus and direction, as well as the ability to keep an end goal in sight. This task, normally conducted on an annual basis, is given to senior management and can take several days to complete. During the strategic planning process, several questions are considered. Things such as a firm’s strengths and weaknesses, current competitors, current market trends, and customer direction. Before the planning session starts, the marketing team will put together a top-line revenue forecast, going out 3-5 years. All business areas within the firm lay out their strengths and weaknesses, then the research and development team submits a detailed list of technology trends, which affect the industry. Throughout the planning process, mission statements are evaluated, SWOT analysis is done in each business function, the marketing and sales forecast is presented and each group creates an execution plan to accomplish those goals. A review of the spending budget is also included. When the planning session has ended, all information is compiled and the finance team puts forth and set of pro forma financial statements, which are a type of
Open Document