LO1 Understand The Process Of Strategic Planning
The following assignment mostly deals with the importance of strategic management and the components associated with the same. Proper analysis of the process of strategic planning has been done by conducting environmental as well as organizational audit on the chosen organization Tesco. Also implementation of strategic planning has been discussed with explanation of resource requirement and SMART objectives.
LO1 Understand the process of Strategic Planning
Assess how business missions, visions, objectives, goals and the core competencies inform strategic planning (1.1)
Strategic planning can be broadly defined as a process which is mostly used for determining the direction, strategy as well as the resource allocation of the organization in order to achieve its desired objectives successfully (Zhou and Wu, 2010). However in order to ensure effective strategic planning it is very important to analyze the current situation or the condition of the organization and its future requirements must also be determined carefully. Some of the major components of strategic planning include –
- Mission – Organizations basically summarizes their goals as well as objectives in their statements of mission and vision. Mission is mostly considered to be the aim of the business enterprise or the organization. It mostly states the reason for the establishment of the organization as to why it exists, what does it aim to achieve and how. Its importance to the organization lies in the fact that it inspires as well as motivates the employees to work harder and it even facilitates the process of team building within the organization which in turn makes the process of achievement of the company’s vision much easier. However it is the duty of the employer or the top management of the company to ensure that the company’s mission is in harmony with its functioning. For example the mission statement of Tesco involves providing value to the customers so as to earn their lifetime loyalty