Formalized Strategic planning is the whole process done in a company that shows the way forward for the company. It details their goals, objectives and target margins for their profits in their future. Some of these goals can be short or long term. Strategic planning is very important for any company to help the employees stay motivated and to have a vision of what the company has to do to get there. Some companies can do formalized strategic planning on their own and others choose to outsource this work to strategizing firms.
Traditional Strategic planning demands that all employees of the firm be present during its formulation to have a similar mindset of the requirements of the plan. They are also the implementers of the plan, so they have to be aware of what exactly is being implemented. It addresses all issues that revolve in a firm from profitability, marketing, employees and growth of the company. Planning helps a firm to brand it and position itself in the market. (John Kew, 2013) .
The strategic plan includes the inputs, outputs and activities that are in the company. A strategic plan considers the strengths and weaknesses of the company and also the values of all stakeholders in the company. It also considers opportunities and threats the company faces and the society’s expectations of the company mainly in its contribution to the well being of the society. Strategic planning is very useful for a company that wants to penetrate a new market (Gerry Johnson, 2010 ).
Setting up of long term strategic goals for any company has to be a process and is informed by various checks. The company will have to do SWOT analysis. It involves the study of the Strengths, Weaknesses, Opportunities and Threats the firm may face in the market (Louis Carter, 2004).
The strengths are increased, the weakness and threats eradicated as soon as possible while the opportunities are further researched on so that they can help increase profitability of the company. The Research and Development section in each firm is responsible for this part of the Strategic planning future (C Appa Rao, 2009).
The company should also create a mission and vision statement. This helps outline the values upheld by the company and its employees. It also indicates the standards that the company upholds in the provision of products and services. A company may also want to include the kind of interaction they would want to have with all their customers and stakeholders to increase loyalty to the company (Robert Wittmann, 2008).
Any business has to have a list of objectives and goals. The goals can be in terms of quantities of sales the company wants to have or their marketing goals. It is in setting up of goals and objectives that the company looks at its contribution to the society. Most firms have a CSR unit that looks at ways to develop the society they are in so that the firm gains more acceptances in the community. It is also a way of advertising and marketing (Gerry Johnson, 2010 ).
The company should set up different strategies and action plans to help them achieve all that is set in their long term goals. The action plans can be made on how to handle their competition or how to create a niche for themselves in the market. Once the plan has been implemented, there has to be constant monitoring to make sure that the plan does not fail (Robert Wittmann, 2008).
Formalized strategic planning challenges normal interaction of people within the business environment. It is not the usual free discussion held in offices. It is a highly structured meeting that with procedures that eliminate the usual sloppiness in normal office meetings. This helps the members come out of their comfort zone into creativity levels and to be able to recognize the real problems and ways to come up with working solutions