Marketing91

  • HOME
  • Marketing Concepts
    • Marketing
      • Retail Tutorials
      • Market Research
      • Customer Management
    • Strategy
    • Management
    • Advertising
    • Branding
    • Business
    • Finance
    • Sales
    • Career Guidance
  • Digital Concepts
    • Blogging
    • Search Engine Optimization
    • Social Media Marketing
    • Facebook Marketing
    • Internet Marketing
    • Ecommerce
  • Brands
    • Marketing Mix of Brands
    • SWOT analysis of Brands
    • Brands Strategy Analysis
    • Business Models
    • Brand Competitors
    • TOP 10
  • Courses
Home » Strategy » Role of strategic planning in an organization

Role of strategic planning in an organization

February 14, 2018 By Hitesh Bhasin Tagged With: Strategy

Strategic planning is needed in any company which has a single product or even multiple products with many strategic business units. The reason for strategic planning department to exist in a company is that the business environment and the companies positioning in such an environment needs to be tracked at all times. Accordingly we can decide the right strategy for the company.Thus, the role of strategic planning in an organization is as follows.

Table of Contents

  • 1) Looking at strategic business units as investments
  • 2) The strategic department keeps monitoring the business environment
  • 3) Establishing a strategy based on the decisions made

1) Looking at strategic business units as investments

SBU’s are nothing but investments from companies for different businesses or products. Thus HUL Will have SBU’s for shampoos, detergents, food products and others. It needs to look at these SBU’s from an investment perspective because the firm Will have limited resources. Thus the proper strategic decision needs to be taken looking at the potential and growth of the SBU which is the role of strategic planning. Finally, if you are looking at SBU’s as investments than you also need to judge its current worth.

Strategic planning

2) The strategic department keeps monitoring the business environment

The market growth rate and therefore the company’s position in that business environment. A simple unit such as market size against companies current market share can say a lot about the company’s potential and is actual market penetration.

Looking at such statistics the strategic planning department drafts the current position of the various SBU’s in the company with respect to the market.If the company has 16 SBU’s, 5 of them might be market leaders, 7 might be average positioned and 4 might have very low market share as compared to their potential.

3) Establishing a strategy based on the decisions made

If you look at the bcg matrix or the mckinsey matrix than these are tools used by the strategic planning department to come to a conclusion about which strategy to follow. The strategy may be made by the top management but the strategy Will be unique for each independent SBU or product. These SBU strategies Will be aligned as per corporate objective.

Thus, taking the above example, the company can use the 5 market leaders as cash cows, it can invest more money in the 7 SBU’s which are performing average, and finally it can divest the 4 SBU’s which are performing very poorly.

Thus the role of strategic planning is summarised as keeping complete track of the company’s progress against the progress of the business environment. And at the same time keep a watch on different SBU’s and products in an organization. And finally form independent sbu strategies with a uniform vision for the organization.

Share this post:

Share on Facebook Share on Twitter Share on LinkedIn Share on Email Share on WhatsApp
Digiaide Marketing and Digital Marketing Courses

Related posts:

  1. Strategic Planning
  2. 6 reasons why Strategic Business Units are Important
  3. Corporate Strategy – Meaning, Components, Goals and Advantages
  4. Levels of Strategy
  5. What are Strategic business units and their advantages
  6. BCG Matrix Explained – Boston Matrix Model Analysis and Advantage
  7. Strategic Groups Definition – Meaning And Examples
  8. Competitive Strategies – Definition, Limitations, and the Importance
  9. What is the Importance of strategy to a Business or an Organization?
  10. Ansoff Matrix Theory Examples of Business Strategies for Future Growth

What Do You Want To Learn About? (Start Here)

  1. Marketing Hub
  2. Management Hub
  3. Marketing Strategy
  4. Advertising Hub
  5. Branding Hub
  6. Market Research
  7. Small Business Marketing
  8. Sales and Selling
  9. Marketing Careers
  10. Customer Management
  11. Top 10 Lists
  1. Internet Marketing
  2. Blogging
  3. Search Engine optimization
  4. E-commerce
  5. Facebook Marketing
  6. Social Media Marketing
  7. Business Model of Brands
  8. Marketing Mix of Brands
  9. Brand Competitors
  10. Strategy of Brands
  11. SWOT of Brands
GET DAILY MARKETING UPDATES

About Hitesh Bhasin

I love writing about the latest in marketing & advertising. I am a serial entrepreneur & I created Marketing91 because I wanted my readers to stay ahead in this hectic business world.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement
Recent Posts
  • Books of Accounts – Definition, Formats and Types
  • Capital Reserves – Definition, Example and Exceptions
  • Book Value Formula – Definition and Calculation
  • Cash-and-Carry Wholesaler – Definition and Features
  • Cash Accounting – Definition, Example, Pros and Cons
Advertisement

Marketing91

MORE INFO

  • About Marketing91
  • Privacy Policy
  • Cookie Policy
  • Disclaimer
  • Terms of Use
  • Advertise
  • Contact us
  • Sitemap
  • ISO 9001:2015 Certified

LEARNING SERIES

  • What is Communications
  • Types of Communication

WE WRITE ON

  • Marketing
  • Small Business
  • Management
  • Internet Marketing
[email protected]

Copyright © 2022 Marketing91 All Rights Reserved