What is Strategic plan ? Benefits from it?

Strategic planning is the art of creating specific business strategies, implementing them, and
evaluating the results of executing the plan, in regard to a company’s overall long-term goals or
desires.

The term strategic planning is essentially synonymous with strategic management.

The purpose of a strategic plan is to set the overall objectives and goals of the organization

Business managers also develop plans to achieve them

Though business managers are involved in day-to-day operations they need to also think where the
business is headed and what its priorities should be.

A strategic plan tells you and your employees the direction that your company needs to move in, in
order to accomplish your business objectives. It also helps you define who you are as a business
entity and what you want to become.

The elements of a strategic plan:

Vision Statement : The vision statement is an important part of a strategic plan as it provides a short
summary highlighting what your business will look like in the future. EXAMPLE: To provide
innovative technological solutions to businesses throughout the nation and the world.

Mission Statement : The mission statement defines the purpose of your business within your
industry or the world. The mission statement usually consists of your business's main industries or
target audiences, key products or services and what makes you different from your competitors.
EXAMPLE : At our company, we are committed to helping low-income families find the resources
they need to get healthcare loans with no credit checks and low-interest payments.

SWOT Analysis : A SWOT analysis allows you to identify and list your business's strengths,
weaknesses, opportunities and threats. This is important as it allows you to determine potential
challenges to achieving your business goals and what you need to do to overcome them.

Long-Term Goals & Yearly Objectives : Every strategic plan should include a goals and objectives
section. You can include both short- and long-term goals as they relate to your overall business
vision. EXAMPLE : Short-term goals: Hire 5 new employees within next four months. Long-term
goals: Expand to include 3 new retail locations within the next two years.

Action Plans : Using what you learned from your SWOT analysis, you can create an action plan.
Action plans consist of strategies for achieving short- and long-term goals or objectives and
overcoming challenges. EXAMPLE : *screenshot*

The benefits of Strategic Planning:

It allows organizations to be proactive rather than reactive

It sets up a sense of direction

It increases operational efficiency

It helps to increase market share and profitability

It can make a business more durable

Helps formulate better strategies using a logical, systematic approach

Enhanced communication between employers and employees

Empowers individuals working in the organization