November 2008
Beginner
448 pages
11h 33m
English
Content preview from Budgeting Basics and Beyond
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2.2. Strategic Planning
Strategic plans are long-term, broad plans ranging from 2 to 30 years, with 5 to 10 years being most typical. Strategic planning is continuous and looks where the company is going. It is done by upper management and divisional managers. Most of the information used is external to the company.
The strategic plan is the mission of the company and looks to existing and prospective products and markets. Strategic plans are designed to direct the company's activities, priorities, and goals. They try to position the company so as to accomplish opportunities. Strategic goals are for the long term, considering the internal and external environment, strengths, and weaknesses.
Strategy is the means by which the company uses its capital, financial, and human resources to achieve its objectives. It shows the company's future direction and rationale, and looks at expected costs and return. Strategic planning is detailed plans to implement policies and strategies. Risk-taking decisions are made. Strategies may be implemented at different times. Strategic planning should take into account the financial position, economy, political environment, social trends, technology, risks, markets, competition, product line, customer base, research support, manufacturing capabilities, manpower, product life cycle, and major problems.
Strategic planning is a prerequisite to short-term planning. There should be a linkage of the two. There is considerably more subjectivity in a strategic ...
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