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Di erence Between Strategic Planning and


Strategic Management
May 25, 2017 By Surbhi S 1 Comment

In the hyper-competitive environment, it is difficult for business houses to survive,


grow and expand in the long-run if they do not have strategic planning. A
strategic planning is an activity, which determines the objectives and considers
both internal and external environment to design, implement, analyze and adjust
the strategies, to gain competitive advantage.
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Strategic Planning is not exactly same as strategic management, which implies


a stream of decisions and actions taken by the top level managers to achieve
organizational goals. It is nothing but the identification and application of
strategies, to improve their performance level and attain dominance in the
industry.

Many think that the two terms denote one and the same thing, but there is a
difference between strategic planning and strategic management which explains
the article hereunder, take a read.

Content: Strategic Planning Vs Strategic Management


1. Comparison Chart
2. Definition
3. Key Differences
4. Conclusion

Comparison Chart

BASIS FOR STRATEGIC


STRATEGIC MANAGEMENT
COMPARISON PLANNING

Meaning Strategic Planning is a Strategic Management implies a


future oriented activity bundle of decisions or moves
which tends to determine taken in relation to the
the organizational formulation and execution of
strategy and used to set strategies to achieve
priorities. organizational goals.
BASIS FOR STRATEGIC
STRATEGIC MANAGEMENT
COMPARISON PLANNING

Stresses on It stresses on making It stresses on producing strategic


optimal strategic results, new markets, new
decisions. products, new technologies etc.

Management Strategic planning is a Strategic management is a


management by plans. management by results.

Process Analytical process Action-oriented process

Function Identifying actions to be Identifying actions to be taken,


taken. the individuals who will perform
the actions, the right time to
perform the action, the way to
perform the action.

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De nition of Strategic Planning


Strategic planning may be understood as the long-term forward-looking activity,
performed by the high-level managers, that focuses on the organization as a whole.
It establishes the overall objectives of the enterprise, frame policies and most
importantly, assist in the determination of the organizational strategy, to meet
competition and survive and grow in the market.

In simple terms, strategic planning can be defined as an official consideration of


the future course of action of the enterprise.
Strategic Management is a top management function which is employed to set
priorities, concentrate and channelize resources, reinforce operations, ensuring
that the employees are aligned towards the achievement of the goals of the
organization and position the organization with respect to the changing
environment. It ascertains organizations intent for the next five years.

Approaches to Strategic Planning

Top Down Approach: It delineates a centralized approach to strategy


formulation, in which the center determines organizations vision, mission,
objectives, and goals.
Bottom-up Approach: Autonomous or semi-autonomous units are
featured with bottom-up approach, wherein the corporate centers do not
determine the strategic role.

De nition of Strategic Management


By the term strategic management we mean, the process that helps the
organization to assess their internal and external business environment forms
strategic vision sets objectives, establish direction, formulate and implement
strategies that are aligned towards the achievement of the goals of the organization.

Strategic management aims at gaining sustained competitive advantage, so as to


supersede competitors and attain a dominating position in the entire market.
Further, it assesses, guide and adjusts the enterprise, according to the changes in
the business environment. The figure provided below explains the strategic
process, in the sequence of various stages.
Strategic Management Process

It is a dynamic process of designing, implementing, analyzing and controlling


strategies, to ascertain the strategic intent of the company. It begins with the
development of mission, goals and objectives, business portfolio and plans.

Strategic Management Model


Key Di erences Between Strategic Planning and
Strategic Management
The following points are substantial so far as the difference between
strategic planning and strategic management is concerned:

1. A future-oriented activity which tends to ascertain the organizational


strategy and used to set priorities, is called strategic planning. On the
contrary, strategic management is a series of decisions or moves taken
by the top managers in relation to the formulation and execution of
strategies to achieve organizational goals.

2. While strategic planning focuses on making optimal strategic


decisions, strategic management is all about producing strategic
results, new markets, new products, new technologies etc.

3. Strategic planning activity uses management by plans, whereas


strategic management process uses management by results.

4. The strategic planning is an analytical activity because it is related to


the thinking. On the contrary, strategic management is an action-
oriented activity.

5. Strategic planning involves the identification of actions to be taken.


Conversely, Strategic management involves identification actions to be
taken, the individuals who will perform the actions, the right time to
perform the action, the way to perform those action.

Conclusion
The scope of strategic management is greater than the strategic planning, in the
sense that the latter is one of the important components of the former, that
encompasses drafting strategies, to stand in the competition and is helpful for the
survival, growth, and expansion of the company. Strategic planning is an activity
performed by the top management of the organization, that helps to relate the
organization with the business environment.
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Filed Under: Business

Comments

syedtabarak says
September 21, 2017 at 12:14 pm

Thank u

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