Why is astute strategic planning a must in today’s competitive business world?

Strategic planning is vital to an organizations mission to announce where it’s going (short term and long term), how it will get there and how it can monitor success or failure. A solid strategic plan focuses a company’s energy, provides direction towards goals, and helps adjust to a changing environment.

In today’s business environment, “flying by the seat of your pants” is extremely risky and inefficient. Strategic planning helps an organization define its purpose, goals, objectives and resources – all used by the team to work together. Although it does not guarantee success, it provides focus and unity in vision, a definite competitive advantage over a competitor who lacks a strategic plan. A powerful strategic plan is the foundation for a company’s success. Projections are rarely the same as the plan forecasts. Meaningful strategic plans provide management with the reasons for variances and thus the wisdom for future planning.

With the rapid globalization of our markets, a strong strategic plan is more important than ever before. A strong strategic plan may provide opportunities in uncertain environments created by globalization.

“ . . . environmental uncertainty is an opportunity because it creates a new playing field in which creativity and innovation can play a major part in strategic decisions.” (Concepts in Strategic Management and Business Policy, Wheelen & Hunger, 2008, p. 73)

As more businesses enter this global stage, establishing a strategic plan that encompasses key factors associated with both local and global aspects of business, is vital to its success. Conducting international risk assessments is vitally important prior to entering a nation’s economic system. Proper business planning will also help in evaluating the economic, technological, political-legal, and socio-cultural variables of a county, as well as analyzing the industry and task environment associated with various countries.

Think globally but act locally. This is more likely obtainable with a successful business plan.