Read this section to understand the process a business would use to develop and implement a strategic plan.
- Successful managers decide where they want the organization to go and then determine how to get there.
- Planning for a business starts at the top and works its way down.
- It begins with strategic planning – the process of establishing an overall course of action.
- Step one is identifying the purpose of the organization.
Then, management is ready to take the remaining steps in the strategic planning process:
- Prepare a mission statement that describes the purpose of the organization and tells customers, employees, and others what it’s committed to doing.
- Select the core values that will guide the behavior of members of the organization by letting them know what is and isn’t appropriate and important in conducting company activities.
- Use SWOT analysis to assess the company’s strengths and weaknesses and its fit with the external environment.
- Set goals and objectives, or performance targets, to direct all the activities needed to achieve the organization’s mission.
- Develop tactical plans and operational plans to implement objectives.