Question 5: Describe the benefits of Good Strategic Planning?

Define and give examples of key terms of Strategic Management?

Answer:
Strategic planning provides a variety of benefits in the organization. Below
are some of the benefits:
1. Clearly define the purpose of the organization and to establish realistic
goals and objectives consistent with that of the mission in defined
timeframe within the organizations capacity for implementation.
2. Communicate those goals and objectives to the organizations
employees.
3. Develop sense of ownership of the plan.
4. Ensure the most effective use is made of the organizations resources
by focusing the resources on key priorities.
5. Provides a base from which progress can be measured and establish a
mechanism for informed change when needed.
6. Brings everyones best and most reasoned efforts have an important
value in building a consensus about where an organization is going.

Key terms of Strategic Management

1. Purpose this includes the reason why an organization exists. It
includes a description of its current and future business. The purpose
of an organization is its primary role in society, a broadly defined aim
(such as manufacturing electronic equipment) that it may share with
many other organizations of its type.
2. Mission it is the unique reason of an organization for its existence and
what sets it apart from all others. The organization's mission describes
why the organization exists and guides what it should be doing. Often,
the organization's mission is defined in a formal, written mission
statement. Decisions on mission are the most important strategic
decisions, because the mission is meant to guide the entire
organization. Although the terms purpose" and "mission" are often
used interchangeably, to distinguish between them may help in
understanding organizational goals.
3. Goals this is the desired future state that the organization attempts
to realize. It is a personal or organizational desired end-point in some
sort of assumed development. Many people endeavor to reach goals
within a finite time by setting deadlines.
4. Objectives refers to specific targets for which measurable results can
be obtained. It also points out to the specific kinds of result the

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organization seeks to achieve through its existence and operations.

What the organization hopes to accomplish.
Strategy are means by which long term objectives will be achieved.
Its role is to identify the general approaches that the organization
utilize to achieve its organizational objectives.
Tactics are specific actions, sequences of actions and schedules an
organization uses to fulfill its strategy. It is also considered as game
plan.
Policy - Policies include guidelines, procedures, rules, programs, and
budgets established to support efforts to achieve stated objectives.
Therefore, policies become important management tools for
implementing them.
Strategists - are the individuals who are involved in the strategic
management process. Several levels of management may be involved
in strategic decision making. However, the people responsible for
major strategic decisions are the board of director, president, the chief
executive officer, the chief operating officer, and the division
managers.