Difference Between Strategic Planning and

Strategic Management
May 25, 2017 By Surbhi S 5 Comments

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.

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 PLANNING STRATEGIC MANAGEMENT
COMPARISON

Meaning Strategic Planning is a future Strategic Management implies a bundle

oriented activity which tends to of decisions or moves taken in relation
determine the organizational to the formulation and execution of
strategy and used to set strategies to achieve organizational
priorities. goals.

Stresses on It stresses on making optimal It stresses on producing strategic results,

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

Management Strategic planning is a Strategic management is a management

management by plans. by results.

Process Analytical process Action-oriented process

Function Identifying actions to be taken. Identifying actions to be taken, the

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

Definition 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 organization’s 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 organization’s 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.

Definition 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 Differences 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.