Topic 1 Strategic Planning in Business Environment

Definition

Strategic planning in management is the process of documenting and establishing the direction of your small business – by assessing both where you are and where you’re going. A well-written strategic business plan can play a pivotal role in your small business’s growth and success because it tells you and your employees how best to respond to opportunities and challenges.

Differences Between a Strategic Plan and a Business Plan

A business plan focuses on the viability of a company and typically covers no more than the upcoming year. Business plans are also regularly used in the beginning stages of starting a business and can include obtaining funding and developing all aspects of the business before getting started. During this stage, you must investigate the market and establish realistic financial goals to create your business plan.

A strategic plan, on the other hand, is more conceptual and dynamic. It serves as a roadmap for your small business to reach its goals. It allows you to gauge your company’s performance, strengths, and weaknesses over time. By revisiting the plan regularly, you can analyse and update marketing, sales, product development, operational, and revenue goals to achieve your desired results.