![]() ![]() As a result of the analysis, managers decide on which plans or markets they should focus on or abandon, how to best allocate the company’s resources, and whether to take actions such as expanding operations through a joint venture or merger.īusiness strategies have long-term effects on organizational success. The purpose of this is to help identify the organization’s strengths and weaknesses, as well as opportunities and threats ( SWOT Analysis). ![]() In the process of formulating a strategy, a company will first assess its current situation by performing an internal and external audit. The development and execution of strategic planning are typically viewed as consisting of being performed in three critical steps: 1. In the end, a company’s management will, hopefully, settle on a strategy that is most likely to produce positive results (usually defined as improving the company’s bottom line) and that can be executed in a cost-efficient manner with a high likelihood of success, while avoiding undue financial risk. Before settling on a plan of action and then determining how to strategically implement it, executives may consider many possible options. The strategic planning process requires considerable thought and planning on the part of a company’s upper-level management. However, enthusiasm for strategic business planning was revived in the 1990s and strategic planning remains relevant in modern business.ĬFI’s Course on Corporate & Business Strategy is an elective course for the FMVA Program. ![]() The concept of strategic planning originally became popular in the 1950s and 1960s, and enjoyed favor in the corporate world up until the 1980s, when it somewhat fell out of favor. The term strategic planning is essentially synonymous with strategic management. It is a concept that focuses on integrating various departments (such as accounting and finance, marketing, and human resources) within a company to accomplish its strategic goals. Strategic planning is the art of creating specific business strategies, implementing them, and evaluating the results of executing the plan, in regard to a company’s overall long-term goals or desires. ![]()
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