There are 3 types of planning. First, strategic plans is a long-range plan
which planned by top management, the result of strategic plan is SAP (Strategic Action Plan). Second, tactical plans are sometimes called short-term action plans because they breakdown the bigger goals and strategies according to strategic plans, into narrower, actionable tasks. The result of tactical plans is BSC (Balance Scor Card). Third, operational plans is a specific plan for the use of the organisation's resources in pursuit of the strategic plan. It is a plan for the day-today management of the organization. The result of operational plans is PoA (Plan of Action). There are six stages in strategic plan as follows : 1. Step 1: Environmental Scan, Identify Target Market and strengths and limitations with respect to meeting market needs, and identify Key Market Trends and the threats and opportunities they present. 2. Step 2: Organizational Assessment, Identify the companys strengths and limitations at each level in the Pyramid of Organizational Development. 3. Step 3: Strategic Issue Resolution, Identify and work to resolve specific strategic issues identified through an analysis of information collected about the companys environment and internal capabilities. 4. Step 4: Strategic Business Plan (Business Definition/Concept Statement)
Strategic Mission Statement: A broad statement of what an organization
wants to achieve during the planning period (typically 3-5 years), Core Strategy, Key Result Areas (KRAs), Objectives, Goals. 5. Step 5: Budgeting, Identifies how financial resources will be invested to help the organization achieve its plan. 6. Step 6: Management Review, Reviews progress being made against Goals. SWOT Analysis is instrumental in strategy formulation and selection according to environmental scanning (internal and eternal analysis)
Figure 1 : Swot Analysis Framework
An overview of the four factors (Strengths, Weaknesses, Opportunities and Threats) is 1. Strengths - Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. 2. Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. 3. Opportunities - Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of
conditions in its environment to plan and execute strategies that enable it to
become more profitable. 4. Threats threats is an external factors that affects achievement of organizations goals
Each position in every quadrant has a different strategy as follows :
Quadrant I - Company is in the current situation. The company has
opportunities and strengths that can be used. Aggressive strategy should be applied in this condition. Quadrant II - Although facing some threats the company still has internal strengths. Diversification strategy (product or market) should be applied because the company has internal strengths that can be used on long period opportunities. Quadrant III - The company is facing a great market opportunity, but on the other hand they also face some internal weaknesses. They must focus to minimize internal company problems in order to reach market opportunities. Turn around strategy should be applied. Quadrant IV - The company is in a poor condition because they face some threats and deal with internal weaknesses so defensive strategy should be applied.