What are the different methods of strategic business planning?
As well as the name suggests, strategic planning for the company concerns the different steps that the organization can take to improve its overall marketability. The strategic planning process involves steps to identify areas in which the enterprise is insufficient, areas in which it has advantages, factors in its internal and external environment, which can earn success and how to combine the results of its analysis for greater productivity and profit. Two popular methods are used for strategic planning; They include strong and analyzing weaknesses, opportunities and threats (SWOT) and analysis of political, economic, social and technological (pests).
SWOT Analysis is a method for evaluating the progress of society to discover areas that require concentration. Information obtained from performing the SWOT analysis can be used for strategic planning of the company. Each organization is different and as such a strength identified in different companies differs. An example is the location and size of the company.What one company considers a disadvantage can be an advantage for another society. Small society could perceive its small size as strength, because it helps in faster decisions. A larger competitor could perceive the size of a smaller society as a minus because the company does not have access to the same resources as the smaller.
Other aspects of SWOT analysis that can be used for strategic business planning include weaknesses, threats and opportunities available to companies. Threats may include things such as stronger competitors, the technology that society has not accepted, negative government policies and internal sabotage. Opportunities could include tax reliefs, government incentives for production, blessing in the economy and cheap labor costs. These Factors all allow the company to formulate effective strategic business planning.
pest analysis is similar to SWOT analysis aso A means of strategic business planning. It also presents various factors that can be used to formulate a business plan. The pest analysis includes economic, political, social and technological factors in relation to business. Another method that can be used to formulate strategic business planning is the formulation of an effective business motto or a statement of a value that will serve as the basis on which a business plan will be built.