No doubt no one can violate the importance of strategic planning in any organization. It's simple as putting some strategic planning to analysis and determines where the company is going over in the next few years or more and how it is going to get that position and how it will know that it's getting the specified goals or not? The main focus of strategic planning is normally on the total organization; on the other hand the stress of a business planning is generally on any particular product, program or some service. There are many different perspectives, approaches and models which are used in the strategic plan. The manner that a strategic planning is carried out mainly depends on the type of the leadership of the organization, secondly organization's environment complexity, thirdly the culture of an organization and the size of the organization and also expertness of planners.
For instance, there is a different kind of strategic planning structures are available which is included issues-based, goals-based, organic and scenario (some would affirm that scenario strategic planning is a more proficient technique than the model).
1) Goals based business planning
Goals-based organizations planning is likely the most common planning and begins with direction on the company's mission, vision and the company’s values, organization’s goals to work towards that mission, and the strategies to achieve those goals, and activity plans in short to determine who will do which work?
2) Organic strategic planning
Organic strategic planning may begin by formulating the company's vision and its values, and then make action plans to attain that vision while binding to those values
3) Issues-based planning
Issues-based strategic plan frequently starts by evaluating issues facing by the organization and different strategies to cover and solve those issues and activity planning.
Developing a strategic plan has great importance and helps to elucidate the company's plans and assure that key management are working all at the same script.
- Debt ratios
- Liquidity ratios
- Profitability ratios
- Asset management ratios
- Cash Flow Indicator Ratios
- Market value ratios
- Financial analysis
- Business Terms
- Financial education
- International Financial Reporting Standards (EU)
- IFRS Interpretations (EU)
- Financial software
Most WantedFinancial Terms
- Most Important Financial Ratios
- Debt-to-Equity Ratio
- Financial Leverage
- Current Ratio
- Interest Coverage Ratio (ICR)
- Solvency Ratio
- Break-even Point
- Debt Service Coverage Ratio
- Receivable Turnover Ratio
- Return On Capital Employed (ROCE)
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