This article states that how STRATEGY PLANNING helps a company in gaining an advantage over its competitor. Strategy is the determination of the basic long term goals and objective of an enterprise and the adoption of courses of action and the allocation of resources necessary for achieving these goals.
There are following condition upon which Strategy planning is dependent-
One of the main reasons why strategic planning has become all the more essential is because of the unpredictable nature of the market. The market is in a constant state of transition. There are also so many variables like the forces of demand and supply, the changing trends and change in the choice of the consumer. There is not only competition from other manufacturers new products are being produced are being introduced on a regular basis.
The most un-predictive and constantly changing factor that makes strategic planning all more essential is technology. Means what is new technology today becomes redundant tomorrow. We are having technological breakthrough on a daily basis threat the current business has become redundant. a company has to have a plan and anticipate the technological challenges .a company needs to ensure that the business stays afloat and uses technology and changes it bring to its best advantage.
Complex nature of business
In today’s world the very nature of business has become very complex and handling all the factors or variables affecting the business all the more difficult. There are many controllable and uncontrollable factors affecting the business . the variety of products the supplier and the various manufacturing processes all add becomes all the more essential for business entity. Along with this decisions have to be taken on the direction in which the business should grow should grow should it be forwarded integration or backward integration.
Competition is one key factor that has made strategic planning all the more essential. Especially in the age of globalization, competition may come over from existing product of new prosducts business complete on various factors. Like quality of product. The service provided, prompt delivery, process and technology.
There are different types of environment which have a bearing on the business. We have the political, economical, social, technological environment affecting fortunes of the business entity. Each type of entity of environment may affect the business of there may be a combination of them that affect the business. Generally the business entity. Each type of the environment may affect the business or there may be a combination of them that affect the business .generally the effect of environment on the business is slow and therefore it has been observed that the attitude of the business towards environment is lax.
Strategic planning should not be mistaken with forecasting nor should it be taken for future decision making but planning in taking decision today with an eye for the future .planning also does not eliminate the risk that may emanate in the future but it prepares the business to face the challenges. Strategic planning prepares the business entity for the uncertain future and helps in achieving its stated objectives and goals.