Chapter 5, Problem 1UTC

Summary Introduction

To determine:

Planning, Strategy and Strategic management meaning, definition and differences between them.

Answer to Problem 1UTC

Solution:

To understand separately planning, strategy and strategic management, what are the differences between them and organizationally what is the impact because of them.

Explanation of Solution

Given information:

Statement to differentiate between Planning, Strategy and Strategic management with detail explanation.

Planning: This is a step by step process defined to achieve a task or activity.

Strategy: It is defined as “A plan of action designed to achieve a long-term or overall aim”.

Strategic Management: In Simple terms strategy and planning together is strategic management which mean to have an ongoing planning to achieve long term goals of any organization.

Planning is a minor part of whole aspect along with Strategy, so if it has to be understood the first thing that needs to be understood is Strategic planning.

Strategic planning: To achieve any organizational goal or any objective there will be set of actions that are to be executed, the designing of strategy as how these activities to be executed and implement to achieve the results is called as Strategic planning.

Strategic Management: To achieve Strategic planning there has to be a road map and the procedures to follow these all require a management model to understand execute based on the requirement and objectives. This is called as Strategic Management.

Steps in Strategic planning and Strategic Management:

Different methods are ideas are implemented in strategic planning and management based on the organization, goals and requirements. There are no hard and fast rules in framing them. However in general there are few areas that need to be focused when preparing so:

• Analysis of all the factors directly or indirectly, internally or externally affecting this.
• Right strategy: Based on above factors a strategy will be prepared and documented for reference.
• Execution: Once strategy is documented next level is to execute it and this happens by breaking it into small areas so than can be diversified to all areas of operations.
• Result study: After certain time frames we will start studying the results and based on that will make necessary changes or improvements if any. There are various factors on which we will study this is on the output, communication, application, performance etc.

What are the differences between Strategic Planning and Strategic Management?

• Any decision taken for future implication based on the past experiences and priorities is Strategic Planning and Decisions taken by high-level management with the support of all the information available and strategies planned is Strategic Management.
• Focus of planning will be on taking decisions optimally however Management focuses on expansion into new territories, areas of business horizontally and vertically.
• Plans designed and decided are the core inputs for Planning and Results are the key inputs for Management strategically.
• Required expertise is analytical skills for Planning and result based approach for Management.
• The vision and approach for planning is quite simple because it only focuses on actions to be implemented however in Strategic Management along with actions it also designs the owner of actions, time of action and approach of action.

Conclusion

Planning, Strategy and Strategic Management are completely inter-related and dependent, based on the level of decision, execution and identifying the impact they differ. Any organization have decisions and planning starting from micro level till higher management level so every decisions, planning and management plays vital role. Managing everything is equally significant at their level of authorization and approach.