Importance of Strategic Planning cs final corporate restructuring notes
Importance of StrategicPlanning :
? Strategic planning encourages, managers to take a holistic viewof both the business and its environment.
? The strength of strategic planning is its ability to harness aseries of objectives,
strategies,policies and actions that can work together.
? Managing a company stragegically means thinking and accordinglytaking suitableaction on multiple fronts.
? Strategic planning provides the tramework for all the majorbusiness decisions
ofan enterprise including decisions on business, products and markets,manufacturing facilities,
investments and organisational structure.
? Strategic planning works as the path finder to various businessopportunities.
? It also serves as a corporate defence mechanism helping the firmavoid costly
mistakesin product market choices or investments.
? Strategic planning has the ultimate burden of providing acorporation wiht certain
core competencies and competitive advantages in itsfight for survival and growth.
? It seeks to prepare the corporation to face the future.
? Its ultimate success lies in shaping it to withstand turbulencesor uncertainties.
? Thus the success of the efforts and activities of the enterprisedepends heavily
onthe quality of strategic planning i.e. the vision, insight, experience, qualityof
judgementand the perfection of methods and measures.