Chapter 2, Problem 1DRQ

Summary Introduction

To identify:  The significant components of strategic planning and discuss its interrelationship.

Explanation of Solution

Strategic planning is the activity of organizational management, which is utilized to establish priorities, concentrate on resources and energy, empower operations, and ensure that the other stakeholders and the employees are working on common goals, sets agreement over the intended results and evaluates and adjust the organization.

The significant components of strategic planning includes the following:

The process of strategic planning starts with the setting up of the goals and mission of the organization. The individual business units and corporation later develop the strategies to attain these goals. The company functions a detailed analysis of the strengths and weaknesses and determines the threats and opportunities inside the external marketing environment.

Later, every functional area of an organization sets up its own goals and develops strategies to attain them, which should support the total mission and goals of the organization and must concentrate on the market orientation.