A business requires good managers who can develop strategic plans that can help sustain and advance the set goals. All businesses enter a market with objectives like earning profit, gaining competitive edge, growth and sustainability (Reading 2002).
What is a strategic business plan?
A strategic business plan is a systematic method of executing intended and evolving initiatives in the business with the aim of achieving the set objectives. Managers have the responsibility of steering a business and their role is to strategically organize how to exploit the available resources to the maximum (Reading 2002). The methods employed by managers are referred as strategic plans, which they develop after analyzing the strengths, weaknesses, opportunities and threats in and around the business (Johnston & Bate 2003). Strategic business planning entails understanding of the businesses vision, mission and objectives, subsequently developing a course of action by designing programs and projects aimed at achievement of the set objectives (Reading 2002). Allocation of resources to furnish the designed projects and programs marks the start of business activities, and the management keeps a keen eye on the activities to evaluate the progress and performance of the business.
Why is this plan important to an organization’s long-term success?
Every organization joins the market with an aim of successfully thriving and sustaining its existence. Strategic business plans furnish businesses with the basis and proper frame work for a real business plan. Without a strategic plan, a business concentrates on the immediate eminent issues and loses sight of their set objectives, and eventually fails (Reading 2002). A good strategic plan serves as a framework for proper decision making, provides a platform for an in depth planning; exposes the business to the rest of the market for recognition and external involvement; assists in evaluation and performance assessment; and, stimulates growth while creating an expansion plan (Johnston & Bate 2003). It is important for an organization to have a strategic plan before entering a market because its existence will depend on the strategies employed.
Long term success of any business depends on the set key growth objectives, and these objectives are the strategic business plans, including their implementation immediately after entry into the market (Johnston & Bate 2003). After a business analyzes its internal and external factors, a long term strategy becomes obvious and the business concentrates on building on strengths, resolving weaknesses, exploiting available opportunities and evading possible threats (Reading 2002).
What role does innovation play in developing a strategic business plan?
Innovation is the employment of modern systems in a business. With the advancement of technology in the world, utilization of the modern means is beneficial to both the business and the public. Innovation ensures that customers are served in the most efficient manner, and the management has accurate analysis data for business evaluation (Johnston & Bate 2003). Business engagement with innovative ways of operation helps detect any negative effects to the business and enables the management to plan effectively. Business development is accurately monitored when innovative evaluation methods are used. A business’s management is able to develop a long term strategic business plan if the evaluation date is accurate (Johnston & Bate 2003).
A strategic business plan is essential in every business. It ensures the success of a business and achievement of long term objectives (Reading 2002). The analysis of companies’ internal and external factors is done accurately using innovative business tools, and the data collected is used by managers to develop good strategic business plans. A strategic business plan sets achievable goals which the management aims at attaining in a set period.