What is Strategic Planning?

The word "strategy" comes from the military. The strategy is a kind of plan to achieve the overall goal from a comprehensive consideration. In ancient times, when marching in the army and fighting in business, a good strategy is an indispensable key to success. So what is strategic planning? Please follow the mind map below to understand.

Definition of Strategic Planning

First, let's look at the definition of strategic planning. According to Wikipedia, strategic planning is a plan for major, overall, primary, and future goals, policies, and tasks. As can be seen from the definition, the so-called strategic planning is simply a process of setting long-term goals of organizations or individuals and putting them into practice. It emphasizes that strategy is not merely to set a goal, such as "our company will provide unparalleled customer service," or "the profit margin of next year will be 10% higher than this year's" and so on. These are not strategies, just some visions or segmented goals. Setting goals is the starting point of the strategy plan, and more importantly, the action guide to achieving these goals.

what is strategic planning

3 Elements of Strategic Planning

1. Direction and objectives

The overall development needs to focus on the goal and clear the trend. The so-called stand high, see far, the goal must be achievable and refuse to be a frog at the bottom of the well. The same precise positioning also plays an important role in determining the direction of future development. Establish their competitive advantage, grasp market demand, and make accurate positioning.

2. Constraints and policies

Find the balance between the environment and all of your resources, capture the best set of activities, and maximize your strengths and achieve your goals.

3. Plans and indicators

The planned project will reach the best target within a short period, and the opportunity and resources will be matched so that the final goal is getting closer and closer.

5 Steps of Strategic Planning

Preparation-> Formulation-> Audit-> Implementation-> Summary

In the preparation stage, we comprehensively evaluate our external and internal environment and combine our advantages with the external situation to make a proper analysis. In the development stage, set goals and develop some measures to achieve this goal and respond to emergencies. During the review phase, it is necessary to determine the feasibility of the strategic plan, the risks it faces, and the adequacy of resilience. The implementation stage is implemented in collaboration with various departments according to the formulated plan. In the summary stage, the strategy cannot always be the same. Update the strategic plan with the times, find out the problem and adjust it. Strategies are widely used today, especially in the enterprise sector. After clarifying some basic knowledge of strategic planning, let's talk about some issues that enterprises need to consider when doing strategic planning.

Some Issues to Consider in Corporate Strategic Planning

Strategies are widely used today, especially in the enterprise sector. After clarifying some basic knowledge of strategic planning, let's talk about some issues that enterprises need to consider when making strategic planning.

Some Issues to Consider in Corporate Strategic Planning

Firstly, in what market competition. In which field do we provide products?

Secondly, what unique value does the market provide? Customers have many choices. What is unique about us that allows them to choose us? For example, SF, because of the advantages of fast speed and low damage to the express delivery, many people choose SF to ship.

Thirdly, what resources and capabilities are used to deliver these unique resources, are there good people? Or advanced technology? Or a unique brand. Many people love IKEA because of its low price and good-looking style. The reason why IKEA can sell cheap furniture is that they can design low-priced Nordic furniture and can design products into mass production styles.

Lastly, how to keep providing unique value? What factors have prevented us from copying our products? Huawei has put independent researches and developed its core components. It's also nurturing the supply chain, and advanced technology, which competitors cannot replicate. These have made it the third pole outside of Apple and Samsung.

Do the above texts and mind maps give you a preliminary understanding of strategic planning? Space and capacity are limited, and there are many important points in strategic planning that have not been expressed above. In our lives, there are many seemingly complex concepts like strategic planning, which can be organized through MindMaster mind map.