Strategic Planning Process Essay

Strategic planning is a critical process for any successful business. It outlines the framework in which the organization operates. Therefore, each area of the process should be carefully considered and developed, with the understanding that some areas are relatively static, whereas other areas change and grow depending upon the environment. By far, the most important part of the strategic planning process is its implementation. If the process is never implemented, its development is just wasted energy.
The Strategic Planning Process
The strategic planning process is broken down into six key areas; they are, the mission statement, the corporate scope, statement of corporate objectives, corporate strategies, operating plan, and the financial plan (Brigham & Houston, 2013). The mission statement is the highest level of the planning process. Although it is not a mandatory requirement, it is recommended, as it sets up the development of the remaining areas.
Mission Statement
The mission statement is a condensed version of the firm’s strategic plan (Brigham & Houston, 2013). In a nutshell, the mission statement should provide a clear vision of the purpose of the business. A company’s mission statement can be likened to a lighthouse, or in today’s terms, to a GPS. It is a precise statement, containing pinpoint clear direction and focus of what the firm does, how the firm does it, who it is done for, and the values they stand by (Brigham & Houston, 2013). If any employees, or the company as a whole, lose track of their goals, their direction, or sense of purpose, the mission statement helps remind them and get them back on track.
Corporate Scope
Corporate scope defines a firm’s lines of business and areas of operation (Brigham & Houston, 2013). For example, an auto manufacturer is designing a new vehicle. Their scope could include whether the vehicle will