Strategic planning is the process by which the company or the business tends to make long term core and strategic decision pertaining to its operations and growth. The strategic planning is aimed at determining the long term plans, selecting the objectives of the business as well as allocating the available resources.There exist many strategic planning techniques however the most used ones pertains to defining a vision for the business as well as devoting a hierarchy of goals, then conducting a SWOT analysis of the industry and the company. The strategic planning then involves formulating actions and processes according to the goals identified. These are then implemented and monitored for long term profitability and updates.
It is extremely important to conduct know the early industry model of a specific organization as the long term strategies of the business are devices according to this model. For this the SWOT analysis is usually used whereby the strengths and weaknesses of the business are identified and the opportunities and threats in the industry are tracked down. A TOWS matrix can then be used to develop the strategies for the business using the strengths to take advantage of the opportunities and employing theses strategies to overcome the weaknesses and threats posed to the company.
The proper strategic analysis of the industry is supposed to be comprehensive in nature which can provide the business with a clear cut picture of the company in the next 5-10 years. The comprehensiveness of the analysis depends on the identification and analysis of the political, sociological, technological, and economic factors. Aside from this the power of the customers, the power of the suppliers and the competition in the industry also have to be taken into account