Strategic planning in business

Planning is deciding in advance what to do and how to do. Planning may be defined as –“setting objectives for a given time period, formulating various courses of action to achieve them and then selecting the best possible alternative from among the different courses of action.” Planning function of management involves determination of objectives and the steps to be followed to achieve these objectives. It precedes organizing, directing and controlling. All other functions are performed within the framework of planning. Planning is essentially forward-looking. It is the process of charting out the path for future actions to achieve the objectives of business. Planning is required in all types of organizations and at all levels of management. It is the process of choosing the best alternative among alternative courses of action. Strategic planning requires application of the mind involving creative thinking and imagination foresight and sound judgment. A business strategy plan refers to the future decisions defining the small business organizations directions and scope in long run. For example, a company’s marketing strategy has to address certain questions like who are the customers, who is the demand for the product? What are pricing policies? How do we advertise the product? All these objectives has to analysed and satisfied.