STRATEGIC PLANNING & FORMULATION

If you are planning for 1 year, grow rice. If you are planning for 20 years, grow trees. If you are planning for centuries, recruit Strategic Thinkers.

Definition
Strategic planning is an orderly process by which top management determines organizational objectives, strategies needed to reach these objectives and short range top level actions necessary to implement the strategy properly.

Strategic Planning is a process whereby an organization makes choices about:

Why do we exist? What are the major goals of this organization? What resources do we need for a successful future? Who will be our customers?

Strategy Formulation

Anthony and Govindrajan define strategy formulation as, the process of deciding on the goals of the organization and the strategies for attaining these goals.

Hierarchy of objectives suggested by Koontz, During the process of strategy formulation, the organization decides on: Vision Mission Goals/Objectives These objectives are to be achieved at various levels.

FORMULATION CYCLE