Strategic management plan refers to the various types of plans associated with strategic management. It is also termed as strategic plan or strategic planning. Preparing a strategic management plan is an important function of the management. It decides the future action plan of a business enterprise.
About Strategic Management Plan
With the help of a strategic management plan, the future activities of a particular business organization can be decided. In simple terms, a strategic management plan is a device with the help of which a commercial enterprise can delineate its strategy and take decisions regarding the allocation of resources to act on the strategy. The resources of a company include the human resources and capital.
A strategic management plan is implemented in the form of a roadmap to specify divisional and functional plans, for example, marketing plans and technology plans. Strategic planning concentrates on the future course of action of a business enterprise.
Important Aspects of Strategic Management Plan
The three most important aspects of a strategic management plan are as follows:
- Vision: It refers to the position where the company desires to reach in the future. It shows the optimism of the company.
- Mission: It delineates towards which position the company is moving at the present time or what is the fundamental aim behind the existence of the company.
- Values: The principal values those should be safeguarded by the company at the time of its advancement and it shows the preferences and culture of the company.
In some instances, the companies sum up their aims and targets into a vision statement (it mentions where the company intends to go) and/or a mission statement (it mentions what is the current situation of the company).
Techniques Used in Strategic Planning
Different types of assessment techniques that are utilized for preparing a strategic management plan include the following:
- SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats Analysis)
- PEST Analysis (Political, Economic, Social and Technological Analysis)
In addition, another method is utilized for formulating strategic management plans, which is known as Situational Analysis. This is basically a combination of PEST Analysis and SWOT Analysis.