Scope of strategic planning




"Strategic planningis the PROCESS by which the GUIDING MEMBERS of an organization ENVISION its future and develop the necessary PROCEDURES AND OPERATIONS to achieve that future" (Ross A. Wirth, Ph. D. -blog, 2009, enTARGA)

Strategy is nothing but a planning, coordination, execution.

The word strategy has military connotations, because it derives from Greek word of general. A Strategy is a plan designed to achieve a goal. In every field like game, business we should have strategy without strategy we can't do anything.

Strategy is different from tactics. All the company should have a strategy to achieve the goal and survive in the market and to fulfill the expectation of stakeholder (one who interest or affect in the business). Stakeholder involves owmers, managers, shareholder, creditors, customers, employees, suppliers, government, local community etc.

The organization should follow the strategy planning process to achieve the goal in the business. In these there are 5 steps stated as:

  • Mission and objectives to initiate the goal or mission and easily understand.
  • Environmental scanning involves External environment such as PEST analysis, internal analysis such as SWOT analysis, task analysis such as porter five forces
  • Strategy formulation in these company should realize the strengths to match its opportunities and also known the weakness and external threats.
  • Strategy implementation is to implement the mission by means of programs, budgets and procedures firm resources and motivation of the staff to achieve objectives.
  • Evaluation and control control and evaulated the strategy after implementing.

Three level of strategy are

  • corporate strategy,
  • competitive or business strategy,
  • Operational or functional strategy.

For perfect strategy planning we have to work in business ethics. All the staffs, manager, strategy maker have to work in organize way to achieve the goal and fulfill the expectation of stakeholders. Planner or strategy maker have skill to realize the competition in the market and make the plan or strategy which is easily to understand by everyone and it is new and fresh that surprise the competitor. Planner should improve there service of his mission to get more profit. Planner also knows the present and future aspects of this mission. The planner has also think about the distribution and sale facility of its mission. Strategy are making in ethical ways that it does not affect the moral values and culture of the people, employer and society. Strategy is making by consider all the factors like legislation, geographic, financial, social and political that affecting business. Strategy are making in such a way that it will always success and fulfill the expectation of the stakeholder. Strategy planning is to bring together,think and execute in ethical way.


What is long term strategic planning process?

Why it is direction and scope of oraganisation?

The startegy is direction and scope of business. This will give an efective enviroment to work in cordinate or together.For An effective approach of planning to achieve first organization is clear of mission or goal the,startegy maker and managers who make the strategy they should follow certain steps which are in circular form and action steps. The first step is to think or initiate the mission or goal and then agree on that mission by readiness assessment plan for planning and they also have business knowlegde. They also have to consider the sales target and all the financial aspects. This project is profitable or not in sort they have to measures the earnings growth. Then the planner or manager or strategy maker should think that what is the requirement and expectation of these projects. This is an must thing or mandatory thing that strategy maker have to think they must know the various requirement such as raw material, land, restriction such as government policies legislation,goverment policies, wars and conflicts etc ,expectation such as earning growth, sales target fulfil the requirement of stake holder and constraints faces. Strategy maker should also know the broadcast sense. So we have to know how to deal with the media. Clarify this all steps again what is the purposes by stakeholder. In tandem to the mission and objective the strategy maker must analyze the environmental scanning.

The environmental scanning contains three contains three components stated as:

  1. Internal analysis of the organization such as SWOT analysis
  2. Analysis of the firm's industry (task environment)
  3. External macro environment (PEST analysis)

External microenvironments are explained by the PEST analysis. Pest means political, economicl, social, technolgy factors that influence the business. Pest is factor which is useful tool or responsible for market high or low, reputation, direction for a business. Pest is also known acronymic as step, this step is taken by all the organization to avoid all threats and success in the market.

In political factors involves ecological, environmental, all type legislation or law(future, current, international), regulatory bodies and processes, government policies, government term and change, trading policies, funding, grants and initiatives, home market pressure- groups, international pressure- groups, wars and conflicts.

Economic factors are Size/growths, inflation rates, exchange rates, income, international trade and monetary policy, unemployment, fiscal policy, general taxation, overseas economies specific, industry factors, market routes trends, distribution trends.

Social factors are lifestyle in an area, demographics (age, sex, geography), Consumer behavior and opinions, media views for brand, company, technology image consumer buying patterns, fashion and role models, ethical issues , culture, value, ethical factors, religious factor and marketing and publicity.

Technological factors are competing technology development, research funding, associated and dependent technologies, maturity of technology, manufacturing maturity and capacity, good information and communications exchange, consumer buying mechanisms and technology, technology legislation, innovation potential, technology access, licensing, patents, intellectual property issues and global communications.

Internal analysis is done by swot analysis. A SWOT analysis is strength, weakness, opportunities, threats.

A SWOT analysis measures a business unit while a PEST analysis measures a market. SWOT analysis is done by an idea and preposition. A SWOT analysis is the personal evaluation of the firm which helps in making decision, understanding, presentation, discussion and decision making. It is an idea decision making, preposition, method and option.


Strength is a factor which involves company name or brand name and value in the market. Organization's strength is its product and sales whose flow is conrolled and in proper direction and its reliability for end-users. Product's quality and durability makes strength for organization. Product's constant performance in competitive environment and its best quality and superior services to customer decides company's future. Organization's communication and behavior to customer and customer service is also strong factor for bright future of organization. Organization's strong background, history, it marketing and publicity strategy makes organization's future secure. And secure future is the strength for organization. They should have better product quality and reliability then the competitor. The management should committed to the work and confident to their mission


When organization is passing through crisis at that time weakness reflects. Weakness for organization demolishes its future and its fame in market. If organization's behavior, its attitude regarding to supplier and customer as well as consumer is not professional then they are consider as a weak point for organization. Budget, raw material for products, product's manufacturing environment, issues regarding to management according to departments in company and improper time management for supply and delivery to customer and lack in services to staff members as well as stakeholders are also consider as weakness of organization.


By company prospective we have to grab every opportunity to success in the future. We have to take decision that surprise the competitors' if the rival have poor quality of product. Company has extent its business to overseas market and also seen its profit margin. Customers' is also taken action to the new product and like the product.


The first or big threat is from ruling government, law and rules. Don't know the challenger plan and market nature. The new tax plan is made by the government. Fear of failure new technology services ideas is using. Loss of key member from the strategy planning due to some reason. Environmental problem such as flood earth quake etc. drop down of home and abroad economy. Not have enough creditors for support of our back. Conflict or barrier between partners and contract.

Task analysis is done by porters five analysis.

American Michael Porter was born in 1947. After initially graduating in aeronautical engineering, Porter achieved an economics doctorate at Harvard, where he was subsequently awarded university professorship, a position he continues to fulfill at Harvard Business School. His research group is based at the Harvard Business School, and separately he co-founded with Mark Kramer the Foundation Strategy Group, 'a mission-driven social enterprise, dedicated to advancing the practice of philanthropy and corporate social investment, through consulting to foundations and corporations'. A prime example of someone operating at aself-actualizationlevel if ever there was one.

New Market Entrants

The entry of the entrant is easy and competing with existing market business effectively. The new strategy of goal is fresh new and it make sense in the people and its makes in consider of all geographical factors like pollution and all the natural resources is needed, all the barriers in the market and present conflict. The routes to the market is easy.

Supplier Power

The reputation of organization makes positive environment for future. Good customer service and relationship is necessary which help in the growing business. The quality of the product is improved and good which increase the sale of the product. Organization should know the ecological experience in an area for easily getting the raw material and supplying the goods easily at any time. Organization should pass tender for supplying company goods.

Competitive Rivalry:

To achieve the success in the business we have to know how to deal with competitor.

Company or organisation should know how many rivalry companies are making same product and also what is there expenses and revenue. For deciding cost of product always taking in consider rival product cost, facility and scope. Company strategy is different, unique, fresh and new from rival company.

Buyer Power

Organization should target the buyer to buy their goods. Organization also knows the sales target and give good service to buyer or customer in return they buy the product again and again these will increase the sale of product and profit. Change the product cost seasonally by giving offer to the buyer.

Product and Technology Development

Organization should launch their product of improve quality and cheap from other by using the technology. They have good marketing strategy and distribution facility. We have to respect all the law made by the government and environment. Product will change the society culture and trend. We make such type of which is necessary part of their life.

Strategy Formulation

In strategy Formulation Company have to develop all the details of a plan for doing something. The information from the environmental scan, internal scan and task analysis, the company have to equals its strengths and opportunities that it is documented, and also deal with its external threats and weakness. The company should have good competitive knowledge, how to enter in the in the market and survive.

Strategy Implementation

Tandem to strategy formulation the strategy now selected and implemented in manner of funds, plan, agenda, program, resources, and procedures. Implementation involves organization assets and motivation of the staff to achieve goals. The startegy is implemented in such way that it will successful. In big company like MNC those who formulated the strategy is different from those implemented that's we have to take extra careless and good communication between these two for the success of strategy.

Evaluation & Control

The last stage is strategy process is evaluation and control. For this firm has to measure the performance of mission and control this performance to achieve the success and profit. If there is some defect in the mission company should make change to mission that is suitable for its future. Compare the performance of this mission to previous mission and evaluated.

Case study:

For e.g. If PEPSI wants to launch a new drink a country. First the manger of Pepsi should know the people taste what they like or not, there culture and religious value; make the strategy which does not affect their social factor. They should follow all the rule and regulation of government and environmental, tax system and economic condition. Managers should know the strategy of other cola company in a country. what they offering to customer and what is there weakness. Launch the product with a bang with new taste and better quality from other cola company. The new drink is fresh and different from other company which will increase the sale of the product and it will fulfill the expectation of the stakeholder Pepsi has very big name so in marketing campaign there is no problem. Big names of country will easily join the marketing campaign. This will give the new opportunity to PepsiCo to launch other product and get more financial backup. These will grow the company sales and play an major part of in home economy by giving sponsorship to government event and other social event. These will fulfill the expectation of stakeholder.

Why strategy planning is more important than ever for organization?

Leaders, managers, strategy maker, and planner of organization or firm or company are in front of various types of problem and challenge. The number of thoughtless idea that affecting the social and economical culture such as population and huge generation gap between the ages changes in the attitude of the family political opposition to change and innovation, tax cuts and rates limits concern about health and safety, filling the gap between rich and poor people. Impressive development in the use of informational technology, mobile phones fear about the terrorism all these factors are think by the strategy before implements the strategy. Consider the ill, health, unemployenent rates global change in the environment and poverty. To make the effective strategy considers all these factors.

Benefits of strategy planning

If organization want to survive in the market or survive in the market has to face this type of challenges. they have to response to these factors immediately to maintain there stability and reputation in the market.

Strategy planning is to achieve the success in the business and achieve profit in the business. In sort it is to how the company and spread the business to achieve the business.

Strategy thinking, acting, and learning espesicially through dialogue and strategic conversation among key actors(vander hejiden, 1996).

Strategy acting,learning,culture and thinking is to encouraged in order to collection of data made from external, internal, and task analysis for the the success and failure of the strategy mission for an organization firm. Thinker, planner and manager should know the need of the people in the market what is there priority. Clear all the future direction. Strategy planning is the impartial way or neutral path for doing business.

Strategy planning is improve the decision making. To formulate or make and communicate with stakeholders what is their direction, path, intention, objective, goal, aim, target of this strategy.

Strategy planning process has positive vibes on social and economic ways. It change trend of the people because of this education rate is increasing and unemployment rate is decreasing.

How strategy fulfils the expectation of the stake holder?

Stakeholder is a person, group of people, organization or system who affects the business or who have interest in the business.

Stakeholder are of two type

  • Internal stakeholder includes Employees, Owners, and Managers.
  • External stakeholder includes suppliers, customer, suppliers, society, government, creditors, and shareholder.

If the strategy is successful it will fulfill the stakeholder expectation. The owner and shareholder will get the profit which will help in the future aspects. Government get more tax for the new mission and it also low the unemployment. It will helps in growth in economy. Senior staff management staff will get the performance bonus and they also get respect and promotion in company. If they achieve the target they will grow this mission to next level. Non managerial staff will get the increase in the salary if the strategy is implemented successful. They also get job security because they have outstanding work. Trade unions will get the good working condition they will also get the good salary and also health and safety facility. They also get the good experience to work in these good conditions. Customers will get the value and respect because all this done for them. They will get the better quality in fewer prices, good customer service. They get the product which is useful for them in all sense. Creditors will get more contracts because of successful of these of mission. There reputation or name in the market will go up. Because of this they will get more liquidity. Local community will get the job and they also trend of the society. it also increase the employment in an area. They will also get the chance to involve in these missions.


Company should make the strategy by giving first preference and priority to the stakeholder expectation. To fulfill the expectation of the stakeholder company should work together in ethical way; follow all the steps of the strategic planning process. Respect and follow all the government legislation, environmental condition and social value and culture. Strategy maker should know the scope and direction of its strategy and it is easy to understand. Strategy maker is focus and have future vision for its strategy. Excellent communication between internal and external stakeholders and use technology for the better quality of product in less price to achieve profit. Strategy is make in such a way that it change the fashion and trend of the people and be the part of their life. Strategy scope and direction is clear to realize the expectation. Analyze all the business and competitive strategy needs by external, internal and task analysis. Strategy is new, revolutionary, fresh and unique from the rival. That's why strategy is need, scope and direction of the business to achieve in the success and fulfill all expectation of the stakeholders.

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