The Essence of Strategic Planning for Business

Every business owner should include both strategic and tactical planning, as part of efforts to develop business plans. However, there are important differences between the two. The main differences between strategic and tactical

Strategic planning
The essence of strategic planning is to focus on the long term. The strategy is to take into account world market conditions and under what conditions it is likely that in four or five years from now. Strategic planning can also consider more substantial changes, such as industry regulation and proposed rule changes and decisions likely in complementary industries, such as suppliers or other options for customers.

Good planning also identifies the assumptions under the business plan. If found later that these assumptions are not met, the plan must be amended. The most likely hypothesis is flawed, and more impact, more time to be allocated to the two development alternatives in the plan and consider other opportunities that may arise. In essence, strategic planning answers the question: What are we?

Tactical planning
The essence of tactical planning is a priority in the short term. Tactics constitutes acceptance of the basic strategy, then find a way to execute that strategy, and behavior change in short-term goals, within a year or less. Although the tactics are more prone to change depending on daily events, and comments were subsequently generally do not question the underlying assumptions such as strategic planning. Repeated tactical challenges can reveal gaps in the understanding of strategic planning, tactics, better yet, usually can not resolve these differences alone. For this reason, a change of tactic does not get the company back on track quickly, then the problem may be strategic in its place. In essence, tactical planning answers the question: How does our company to achieve the desired results?

Therefore, if one includes the strategic and tactical planning, as part of its business plan, you’re in a better position to succeed. Strategic planning necessary to examine the long-term challenges the company faces and the direction the company should take. Tactical planning necessary to develop methods to manage short-term problems a company faces and the best strategy should be implemented. When both are included, a business plan is then a more comprehensive document that you can review the changes in the assumptions, and is also used to attract investors to support new business.

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Friday, December 31st, 2010 Business, Business Strategy

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