The Importance of Planning

Planning Importance in Management

Planning is a process which involves the determination of future course of action, i.e. why an action,
how to take an action, and when to take action are main subjects of planning.

"Planning may be broadly defined as a concept of executive

action that embodies the skill of anticipating, influencing, and
controlling the nature and direction of change".
- McFarland

Plan your work & work your plan

Planning throws the searchlight of human wisdom, experience, and ingenuity into the darkness of
the future.

Recommended Important Planning Articles

PLANNING - Management principles

Planning bridges the gap from where we are to where we want to go. It makes it possible for
things to occur which would not otherwise happen.

Principles of Planning
Planing is a dynamic process, it is very essential for every organisation to achieve their ultimate
goals, but, there are certain principles which are essential to be followed so as to formulate a
sound plan....

Importance of Planning
1.

Planning increases the organization's ability to adapt to future eventualities: The future
is generally uncertain and things are likely to change with the passage of time. The uncertainty
is augmented with an increase in the time dimension. With such a rise in uncertainty there is
generally a corresponding increase in the alternative courses of action from which a selection
must be made. The planning activity provides a systematic approach to the consideration of

such future uncertainties and eventualities and the planning of activities in terms of what is
likely to happen.
2.

Planning helps crystallize objectives: The first step in planning is to fix objectives which
will give direction to the activities to be performed. This step focuses attention on the iesults
desired. A proper definition and integration of overall and departmental objectives would result
in more co-ordinated inter-departmental activities and a greater chance of attaining the overall
objectives.

3.

Planning ensures a relatedness among decisions: A crystallization of objectives as

mentioned above would lead to a relatedness among the decisions which would otherwise
have been random. Decisions of the managers are related to each other and ultimately towards
the goals or objectives of the enterprise. Creativity and innovation of individuals is thus
harnessed towards a more effective management of the company.

4.

Planning helps the company to remain more competitive in its industry: Planning may
suggest the addition of a new line of products, changes in the methods of operation, a better
identification of customer needs and segmentation and timely expansion of plant capacity all of
which render the company better fitted to meet the inroads of competition.

5.

Adequate planning reduces unnecessary pressures of immediacy: If activities are not

properly planned in anticipation of what is likely to happen, pressures will be exerted to achieve
certain results immediately or a in a hurry. Thus adequate planning supplies orderliness and
avoids unnecessary pressures.

6.

Planning reduces mistakes and oversights: Although mistakes cannot be entirely

obviated, they can certainly be reduced through proper planning.

7.

Planning ensures a more productive use of the organization's resources: By avoiding

wasted effort in terms of men, money and machinery, adequate planning results in greater
productivity through a better utilization of the resources available to the organization.

8.

Planning makes control easier: The crystallization of objectives and goals simplify and
highlight the controls required.

9.

Planning enables the identification of future problems and makes it possible to provide for
such contingencies.

10.

Planning can help the organization secure a better position or standing: Adequate
planning would stimulate improvements in terms of the opportunities available.

11.

Planning enables the organization to progress in the manner considered most

suitable by its management: Management, for example, may be interested in stability and
moderate profits rather than huge profits and risk of instability. In terms of its objectives, the
plan would ensure the actions are taken to achieve such objectives.

12.

Planning increases the effectiveness of a manager: As his goals are made clearer,
adequate planning would help the manager in deciding upon the most appropriate act.

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Is planning a waste of time in relation to unpredictable

future?
Planning in organization is the process of creating and maintaining a plan. It is a process of thinking
about the activities required to accomplish a desired task or reaching the organisational goal.
Choosing a destination, evaluating alternative routes, and deciding the specific course of the plan, in
short, are the major steps involved in the process of planning.
Future is always unpredictable, market trend is always dynamic. Only through a proper and flexible
planning future uncertainties can be tackled efficiently. Hence planning is never a waste of time in
relation to unpredictable future. In fact planning is more essential to deal with the future
unforeseeable trends.

Important Articles on Management Principles

Evolution of Management Principles

Early Perspectives | Classical Management Theory | Neo Classical Theory / Human Relations
Approach | Management Science / Operational Research | Modern Management

DIRECTING - Management principles

Directing means giving instructions, guiding, counselling, motivating and leading the staff in an
organisation in doing work to achieve Organisational goals. Directing is a key managerial
function to be...

ORGANISING - Management principles

Organisation is the process of identifying and grouping of the works to be performed, defining
and delegating responsibility and authority and establishing relationships for the purpose of
enabling people to work most efficiently.

Staffing Management Principles

Staffing is the function by which managers build an organisation through the recruitment,
selection, and development of individuals as capable employees.

Controlling - Management Principles

The managerial function controlling always maximise the use of scarce resources to achieve
the purposeful behaviour of employees in an organisation

Principles of Planning
A good plan today is better than a perfect plan tomorrow.

Important Planning Articles

PLANNING - Management principles

Planning bridges the gap from where we are to where we want to go. It makes it possible for
things to occur which would not otherwise happen.

The Importance of Planning

Importance of Planning Function. Planning is a process which involves the determination of
future course of action, i.e. why an action, how to take an action, and when to take action are
main subjects of planning...

Management Planning Principles

Planing is a dynamic process, it is very essential for every organisation to achieve their ultimate
goals, but, there are certain principles which are essential to be followed so as to formulate a sound
plan. They are only guidelines in the formulation and implementation of plans. These principles are
as follows:

1.

Principle of Contribution: The purpose of planning is to ensure the effective and efficient
achievement of corporate objectives, in-fact, the basic criteria for the formulation of plans are to
achieve the ultimate Objectives of the company. The accomplishment of the objectives always
depends on the soundness of plans and the adequate amount of contribution of company
towards the same.

2.

Principle of Sound and Consistent Premising: Premises are the assumptions regarding
the environmental forces like economic and market conditions, social, political, legal and
cultural aspects, competitors actions, etc. These are prevalent during the period of the
implementation of plans. Hence, Plans are made on the basis of premises accordingly, and the
future of the company depends on the soundness of plans they make so as to face the state of
premises.

3.

Principle of Limiting factors : The limiting factors are the lack of motivated employees,
shortage of trained personnel, shortage of capital funds, government policy of price regulation,
etc. The company requires to monitor all these factors and need to tackle the same in an
efficient way so as to make a smooth way for the achievement of its ultimate objectives.

4.

Principle of Commitment: A commitment is required to carry-on the business that is

established. The planning shall has to be in such a way that the product diversification should
encompass the particular period during which entire investment on that product is recovered.

5.

Principle of Coordinated Planning: Long and short-range plans should be coordinated with
one another to form an integrated plan, this is possible only when latter are derived from the
former. Implementation of the long-range plan is regarded as contributing to the implementation
of the short-range plan. functional plans of the company too should contribute to all others
plans i.e. implementation of one plan should contribute to all the other plans, this is possible
only when all plans are consistent with one another and are viewed as parts of an integrated
corporate plan.

6.

Principle of Timing: Number of major and minor plans of the organisation should be
arranged in a systematic manner. The plans should be arranged in a time hierarchy, initiation
and completion of those plans should be clearly determined.

7.

Principle of Efficiency: Cost of planning constitute human, physical and financial resources
for their formulation and implementation as well. Minimizing the cost and achieving the efficient
utilization of resources shall has to be the aim of the plans. Cost of plan formulation and
implementation, in any case, should not exceed the organisations output's monetary value.
Employee satisfaction and development, and social standing of the organisation are supposed
to be considered while calculating the cost and benefits of plan.

8.

Principle of Flexibility: Plans are supposed to be flexible to favour the organisation to copeup with the unexpected environments. It is always required to keep in mind that future will be
different in actuality. Hence companies, therefore, require to prepare contingency plans which
may be put into operation in response to the situations.

9.

Principle of Navigational Change: Since the environment is always not the same as
predicted, plans should be reviewed periodically. This may require changes in strategies,
objectives, policies and programmes of the organisation. The management should take all the
necessary steps while reviewing the plans so that they efficiently achieve the ultimate goals of
the organisation.

10.

Principle of Acceptance: Plans should be understood and accepted by the employees,

since the successful implementation of plans requires the willingness and cooperative efforts
from them. Communication also plays a crucial role in gaining the employee understanding and
acceptance of the plans by removing their doubts and misunderstanding about the plans also
their apprehensions and anxieties about consequences of plans for achievement of their
personal goal.

Planning Function of Management

Planning in Management
Planning is deciding in advance what to do and how to do.It is one of the basic managerial functions.
Before doing something, the manager must formulate an idea of how to work on a particular task.
Thus, planning is closely connected with creativity and innovation. It involves setting objectives and
developing appropriate courses of action to achieve these objectives.

Failing to plan is planning to fail

Planning Definition
"Planning bridges the gap from where we are to where we
want to go. It makes it possible for things to occur which
would not otherwise happen"
- Koontz and O'Donnel.

Importance of Planning

Planning provides directions

Planning reduces the risks of uncertainty

Planning reduces overlapping and wasteful activities

Planning promotes innovative ideas

Planning facilitates decision making

Planning establishes standards for controlling.

Planning Function of Management

Planning in Management
Planning is deciding in advance what to do and how to do.It is one of the basic managerial functions.
Before doing something, the manager must formulate an idea of how to work on a particular task.
Thus, planning is closely connected with creativity and innovation. It involves setting objectives and
developing appropriate courses of action to achieve these objectives.

Failing to plan is planning to fail

Planning Definition
"Planning bridges the gap from where we are to where we
want to go. It makes it possible for things to occur which
would not otherwise happen"
- Koontz and O'Donnel.

Importance of Planning

Planning provides directions

Planning reduces the risks of uncertainty

Planning reduces overlapping and wasteful activities

Planning promotes innovative ideas

Planning facilitates decision making

Planning establishes standards for controlling.

(Read more on the Importance of Planning ...)

Features of planning

Planning focuses on achieving objectives

Planning is a primary function of management

Planning is pervasive

Planning is continuous

Planning is futuristic

Planning involves decision making

Planning is a mental exercise

Features of planning

Planning focuses on achieving objectives

Planning is a primary function of management

Planning is pervasive

Planning is continuous

Planning is futuristic

Planning involves decision making

Planning is a mental exercise

(Read more on the Principles of Planning ...)

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Types of Plans
Objectives: Objectives are very basic to the organisation and they are defined as ends which the
management seeks to achieve by its operations.They serve as a guide for overall business planning.
Strategy: strategy is a comprehensive plan for accomplishing an organisation objectives. This
comprehensive plan will include three dimensions,
(a) determining long term objectives,
(b) adopting a particular course of action, and
(c) allocating resources necessary to achieve the objective.
Policy: They are guides to managerial action and decisions in the implementation of strategy.
Procedure: Procedures are routine steps on how to carry out activities. Procedures are specified
steps to be followed in particular circumstances.

Method: Methods provide the prescribed ways or manner in which a task has to be performed
considering the objective. It deals with a task comprising one step of a procedure and specifies how
this step is to be performed.
Rule: Rules are specific statements that inform what is to be done. They do not allow for any
flexibility or discretion.
Programme: Programmes are detailed statements about a project which outlines the objectives,
policies, procedures, rules, tasks, human and physical resources required and the budget to
implement any course of action.
Budget: It is a plan which quantifies future facts and figures. It is a fundamental planning instrument
in many organisations.

Also See:

The Five Functions of Management

Functions of Management. Koontz and ODonnel explained five functions of management.
They are; Planning, Organizing, Staffing, Directing and Controlling.

Functions of Management

Evolution of Management Principles

The first known management ideas were recorded in 3000-4000 B.C.

ORGANISING - Management principles

Organisation is the process of identifying and grouping of the works to be performed, defining
and delegating responsibility and authority and establishing relationships for the purpose of
enabling people to work most efficiently...

DIRECTING - Management principles

Directing means giving instructions, guiding, counselling, motivating and leading the staff...

Staffing Management Principles

Staffing is the function by which managers build an organisation through the recruitment,
selection, and development of individuals as capable employees.

Controlling - Management Principles

The managerial function controlling always maximise the use of scarce resources to achieve
the purposeful behaviour of employees in an organisation.

Principles of Management

Principles of Planning
Principles of Planning : Planing is a dynamic process, it is very essential for every organisation
to achieve their ultimate goals, but, there are certain principles which are essential to be
followed so as to formulate a sound plan.

Principles of Organizing
Principles of Organizing; Organizing can be effective only if managers follow some guiding
principles in order to make important decisions and act upon them.

Principles of Directing
Direction is always a complicated task as it involves dealing with employees of different kind. A
manager can become successful in the skill of efficient direction by learning and practicing the
basics of direction.

Principles of Staffing
Principles of Staffing; Staffing process of management assists in obtaining the right talent and
also nurturing it. Staffing principles which are universally accepted are not present.

Principles of Controlling
Principles of controlling; Controlling is a procedure of ensuring that satisfactory progress has
been made in accordance with the plans and noting down the experience benefited for
achieving forth coming goals.

Importance of Planning

Importance of Planning

The importance of the planning function should have be clear to you. We can outline the
importance of planning function as follows:
Provides Direction: Planning provides a clear sense of direction to the activities of the
organization and to the job behavior of managers and others. It strengthens their confidence
in understanding where the organization is heading and what for, how best to make the
organization move along the chosen path, and when should they take what measures to
achieve the goals of the organization.


Provides opportunity to analyze alternative courses of action: Another source of
importance of planning is that it permits managers to examine and analyze alternative
course of action with a better understanding of their likely consequences. If managers have
an enhanced awareness of the possible future effects of alternative courses of action, for
making a decision or for taking any action, they will be able to exercise judgment and
proceed cautiously to choose the most feasible and favorable course of action.
Reduces uncertainties: Planning forces managers to shake off their inertia and insular
outlook; it induces them to look beyond those noses, beyond today and tomorrow, and
beyond immediate concerns. It encourages them to probe and cut through complexities and
uncertainties of the environment and to gain control over the elements of change.
Minimizes impulsive and arbitrary decisions: Planning tends to minimize the incidence of
impulsive and arbitrary decisions and ad hoc actions; it obviates exclusive dependence on
the mercies of luck and chance elements; it reduces the probability of major errors and
failures in managerial actions. It injects a measure of discipline in managerial thinking and
organizational action. It improves the capability of the organization to assume calculated
risks. It increases the freedom and flexibility of managers withing well-defined limits.
King-pin function: As stated earlier, planning is a prime managerial function which provides
the basis for the other managerial functions. The organizational structure of task and
authority roles is built around organizational plans. The functions of motivation, supervision,
leadership and communication are addressed to implementation of plans and achievement
of organizational objectives. Managerial control is meaningless without managerial
planning. Thus, planning is the king-pin function around which other functions are designed.
Resource Allocation: Planning is means of judicious allocation of strategic and scarce
resources of the organization in the best possible manner for achieving strategic goals of the
organization. The strategic resources include funds, highly competent executives,
technological talent, good contacts with government, exclusive dealer network and so on. If
the organization enjoys a distinct advantage in possession of such resources, a careful
planning is essential to allocate them into those lines which would strengthen the overall
competitive position of the organization.
Resource use efficiency: For an ongoing organization, planning contributes towards a

more efficient functioning of the various work units. There is better utilization of the
organization's existing assets, resources and capabilities. It prompts managers to close
gaps, to plug loopholes, to rectify deficiencies, to reduce wastage and leakages of funds,
materials, human efforts and skills so as to bring about an overall improvement in resource
use efficiency.
Adaptive responses: Planning tends to improve the ability of the organization to effectively
adapt and adjust its activities and directions in response to the changes taking place in the
external environment. An adaptive behavior on the part of the organization is essential for its
survival as an independent entity. For a business organization, for example, adaptive
behavior is critical in technology, markets, products and so on.
Anticipative action: While adaptation is a behavior in reaction and response to some
changes in the outside world, it is not enough in some situations. In recognition of this fact,
planning stimulates management to act, to take hold initiatives, to anticipate crises and
threats and to ward them off, to perceive and seize opportunities ahead of other
competitions, and to gain a competitive lead over others. For the purpose, some enterprises
establish environmental scanning mechanism as part of their planning systems. Thereby
such enterprises are able to direct and control change, instead of being directed and
controlled by the pervasive external forces of change.
Integration: Planning is an important process to bring about effective integration of the
diverse decisions and activities of the managers not only at a point of time but also over a
period of time. It is by reference to the framework provided by planning that managers make
major decisions on organizational activities, in an internally consistent manner.

How to Write a Strategic Plan for Education

By Michele Vrouvas, eHow Contributor
X

Strategic education plans keep taxpayers in the loop about learning initiatives

To local school officials, taxpayers in a community share much in common with

stakeholders in a publicly traded company. The proof is that superintendents and boards
of education spend months and even years designing strategic plans for education that
serve almost the same functions as a company's annual financial reports. These
educational road maps portray officials' vision for the schools' future while presenting
strategies to improve results, objectives to realize goals and key indicators to measure
performance.

Instructions
1.

Brainstorm a list of goals for improving student achievement. Arrange

goals in order of importance to the district at large. For example, the first
goal might be to boost the high school graduation rate. The last goal might
be to revamp language arts instruction at one of the elementary schools.

Write an introduction summarizing those goals and expressing the district's

educational vision. Refer to successes and shortcomings of prior strategic
plans. Point out how the current plan differs and how those differences will
improve results. For example, a report might conclude the prior strategic
plan's goal of improving standardized test scores barely met expectations
because it depended on an outdated teaching model. Explain how
advances in test preparation models that are worked into the current plan
will elevate scores.
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o

3
Move on to a section called "Declarations." Prepare a list of statements
reflecting the district's beliefs about what conditions are necessary for
learning. For example, a declaration might be, "Students learn best when
actively engaged in the learning process."

4
Call the next section "Key Strategies." Write one goal at the top of the
page. Underneath it, write objectives for achieving the goal. For example,
an objective for a goal to intensify academic challenges might be to have
90 percent of students pass standardized literacy tests. Write objectives for
all goals identified in the report's introduction. Provide details for
accomplishing each objective. In this section, a strategy might be to design
new reading programs that enhance scores on reading comprehension
tests.

5
Start a new section called "Measuring Progress." List daily assessment
tools teachers use to gauge student progress and explain how often
assessments are given. For example, a measurement of success in sixthgrade English classes might be that all students scored in the top
percentile on weekly comprehension tests administered from October
through November.

6
Conclude the strategic plan with a page of "Credits." List the names of
teachers, staff and parents who helped prepare the report. Identify the
office that produced the final version and tell readers whom they should
contact for more information.

Read more: http://www.ehow.com/how_6625553_write-strategic-planeducation.html#ixzz2xHanUILc

How to Write a Strategic Plan for Schools

By Kristine Brite, eHow Contributor
X

A school's strategic plan is the school's road map for the next several years. The school
board, superintendent and school administrators spend months or even longer on a
strategic plan. The document goes through several writing, approval and revision cycles.
The strategic plan includes objectives and the planned means to both meet those objectives
and measure success. The goals are usually academic performance goals, financial goals
and plans for school grounds and buildings. The strategic plan usually covers several
years.

Instructions
o

1
Write down goals for the school in a brainstorming session. Number the
goals from the most important to the least pressing or important. For
example, if the high school is overcrowded, building a new high school
might be the highest goal while something like raising language arts
grades might be last.

2
Write an introduction discussing these goals. Specify how your school will
achieve them. point out any needed changes, like cutting the budget in
other areas to pay for a new building.

3
Write the next section, called "Declarations." This is a list of statements
oulining how the school feels about the best conditions for learning.

4
Name the next section "Key Strategies." In this section, write a goal and
underneath write how you plan on reaching that goal. In this section, write
at length about how you plan on achieving each goal.

Write a section called "Measuring Progress" which lists daily goals and
tools teachers use in the classroom to measure success.

Write "Credits" as the final section. Use this section to list any teachers,
administrators or others that helped prepare the report.

Read more: http://www.ehow.com/how_7835579_write-strategic-planschools.html#ixzz2xHb7UXio

Instructions
1.

How to Write a 5-Year Strategic Plan

Put together a team that represents all departments within your business.
Depending on the size of the business, strategic planning teams should not
exceed eight people.

Create a vision and mission statement. A vision statement is a short one- or

two-sentence statement that expresses where the business would like to be
in the future. A mission statement may be a paragraph or more. This
statement explains the values and intentions of a business.
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o

3
Create a list of short-term goals. These goals can include increasing the
number of employees, moving to a larger space, increasing customer

awareness of goods and services, or making internal changes to operations

or management. Short-term goals are those that can be accomplished
within the first year or two of a 5-year strategic plan.
o

4
Create a list of long-term goals. These goals are to be met within a 5-year
time period and can include increasing sales by a certain percentage,
creating new goods and services, implementing new procedures or
operational tasks, company expansion or, in some cases, downsizing. Longterm goals may be implemented in phases (for example, if you want to
expand your company, leasing new warehouse space, hiring additional
employees or introducing new products may be completed over the span of
5 years).

5
Set measurable goals and time limits to meet these goals. These are shortand long-term goals that can be measured through increased production,
increased sales or increased customer interest. Measurable goals help keep
employees motivated and allow team members to make changes if goals
are not met at a predetermined time.

6
Outline possible ways to meet both short- and long-term goals. Brainstorm
with team members for new ideas and concepts. Even though some ideas
will not be used, brainstorming is the best way to involve every department
within the company. Make sure every member of the team is allowed to
contribute to brainstorming sessions.

7
Put vision and mission statements, short- and long-term goals, and ways to
meet these goals into a report that also includes budgets, financial forecasts
and other overhead information. This is your 5-year strategic plan.

Read more: http://www.ehow.com/how_4898188_write-year-strategicplan.html#ixzz2xHc2kwRl

Importance of SWOT Analysis

By Regina Edwards, eHow Contributor
X

Share

Print this article

A SWOT analysis is a tool for companies to assess the industry and to develop strategies to
remain competitive. This is a simple way to focus aspects of the company and business
sector and to organize the findings to evaluate the current status of the business, future
prospects and the economic climate. A SWOT analysis promotes critical and specific
thinking to enhance strategic plans and objectives. The SWOT analysis has been used as a
business concept since the 1960s and has shown its value when applied to organizations,
management structure and marketing.

Other People Are Reading

Advantage and Disadvantage of SWOT Analysis

The Importance of SWOT

1.

History
o

Albert Humphrey from Stanford University is credited as the developer of

the Strengths, Weaknesses, Opportunities and Threats--or SWOT--analysis,
which derived from the Team Action Model research project. TAM is a business
concept that supports executives in effectively managing change. SWOT

extends from the TAM concept. George Albert Smith Jr. and C. Roland
Christiensen from Harvard Business School are credited with the acronym
during the 1950s and 1960s to evaluate gaps and resources within companies
as an organizational strategy. The SWOT concepts were refined over the years
to become one of today's marketing tools.

Significance
o

The SWOT analysis is a key component in strategic planning. The

analysis subjectively evaluates the impact of internal and external factors for a
business objective. Internal processes and resources are considered strengths
and weaknesses (S and W, respectively). External factors affecting the
business and industry are considered opportunities and threats (O and T,
respectively). An evaluation of these factors develops a strategic perspective
that includes the competitive landscape and current market conditions.
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Features
o

SWOT analysis can include:

Strengths: Experience and expertise; new and current products; quality and
reputation; resources and access to distributors; location
Weaknesses: Deficiencies in access and experience; brand name recognition
and reputation; perceived value; costs
Opportunities: Emerging markets and technologies; strategic partnerships and
alliances; changes in regulations and policies; expansion into other geographic
areas or industries; diminishing competition
Threats: Generic or updated products or technologies; increased scrutiny and
tighter regulations; competitors entering the marketplace; increased costs for
resources

Considerations
o

A SWOT analysis is subjective yet concise. Overanalysis and

generalizations have limited value in preparing a strategic perspective. The
factors in the SWOT analysis should reflect the actual internal status of the
business and its future prospects, as well as external forces within the industry

so that an action plan can be prepared. Other tools such as Porter's Five Force
analysis can supplement information in a SWOT.

Misconceptions
o

Strategy should not be based solely on a SWOT analysis. The value of a

SWOT analysis is to prepare a snapshot of the current competitive landscape
and to identify areas that can be improved, internally. A SWOT analysis can
provide companies with discrete insight regarding prioritizing strategies and
tactics to gain an advantage. Preparing a SWOT analysis is not complicated; it
should be revisited on a regular basis to evaluate the impact of strategies in an
ever-changing economy.

Read more: http://www.ehow.com/about_5377992_importance-swotanalysis.html#ixzz2xHdIkHqq

Role of Strategic Planners

By Kyra Sheahan, eHow Contributor
X

Share

Print this article

Businesses rely on strategic plans to reach long and short-term organizational objectives.
Strategic planners are called in to evaluate an organization and identify strategic
concepts that are worth putting into practice.

1.

Definition
o

Strategic planners map out where an organization is going, or should go,

and they determine how the organization will get there. Strategic planners
possess sharp analytic skills and are conversant in understanding and
identifying risk.

Function
o

According to the Free Management Library, strategic planners examine an

organization's strengths, weaknesses, opportunities and threats in a process
known as a SWOT analysis. This activity requires the strategic planner to scan
the organization's environment, such as the economy or industry competition,
so that they may carefully calculate all of the factors that impact the company.
Performing a SWOT analysis helps strategic planners formulate the best
strategies for a company.

Benefits
o

One of the benefits to having strategic planners is that they help the
organization develop goals and stay on the right path, as well as identify action
plans for implementing the strategy. Strategic planners calculate how long the
strategy will take to execute, and perform financial projections to determine how
profitable the strategy will be in the end

Read more: http://www.ehow.com/facts_6890316_role-strategicplanners.html#ixzz2xHf67MGs

What Is a SWOT Analysis?

A SWOT analysis is a strategic planning technique that involves scanning the internal and
external business environment to determine whether a specific goal is attainable and what
needs to be involved in achieving that goal.

1.

Strengths
o

The "S" in SWOT stands for strengths, internal factors that are favorable
to achieving the desired outcome. Strengths may include product patents,
trade secrets, exclusive access to resources and company reputation.

Weaknesses
o

The "W" in SWOT stands for weaknesses, internal factors that may
interfere with achieving the desired result, including high overhead, lack of
supplier relationships and poor reputation.

Opportunities
o

The "O" in SWOT stands for Opportunities; these are external factors that
may help in reaching the desired outcome, including new technologies,
increased customer demand and loosened regulations.

Threats
o

The "T" in SWOT stands for threats, external factors that may hinder the
achievement of the desired goal; these include changes in customer
preferences, intense competition in a particular market and governmental
regulations.

Using the SWOT Analysis

o

Once a SWOT analysis has been completed, it should be reviewed to

determine whether the desired outcome is feasible. Management should focus
on how to capitalize on each strength and opportunity, and how to mitigate
each weakness and threat.

Advantages & Disadvantages of SWOT

Analysis
By Jennifer Uhl, eHow Contributor
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A SWOT Analysis identifies strengths, weaknesses,

opportunities and threats.
A SWOT analysis is a tool used for strategic planning that looks at the strengths,
weaknesses, opportunities and threats for a project. This type of analysis can be applied to
a variety of different projects, and looks at favorable, unfavorable, internal and external
factors involved with achieving specific objectives. There are both advantages and
disadvantages to performing this type of analysis.

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Advantage and Disadvantage of SWOT Analysis

The Advantages of SWOT Analysis

1.

Advantage: Clarity
o

One of the greatest advantages of SWOT analysis is that it helps to

summarize and clarify whatever opportunities and issues are facing a business
or project. For this reason, a SWOT analysis is often advantageous and can
play a key role in how a business sets its objectives and develops strategies for
achieving goals.

Advantage: Cost
o

Another advantage of SWOT analysis is that the primary cost involved in

the process is time. A SWOT analysis makes it possible for new ideas to be
generated without costing the business much in the process. Hiring a business
strategist or a marketing team would cost time and resources, but a SWOT
analysis can be performed by anyone with time available and an understanding
of how the business is run.
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Advantage and Disadvantage: Simplicity

o

A SWOT analysis is simple to conduct, which poses both advantages and

disadvantages. The advantage lies in the fact that anyone with a basic
understanding of the business can perform this analysis. The disadvantage to
the simplicity of this type of analysis is that it usually creates a very simple list
that is not presented critically. If a company is focused only on the creation of a
list, then it may not be focusing its attention sufficiently or deeply enough on
how it can actually achieve all of its objectives.

Disadvantage: Further Research Required

o

In order for a SWOT analysis to be truly successful, it should extend

beyond a simple list of strengths, weaknesses, opportunities and threats. For
example, a business should consider what degrees of strengths and
weaknesses it possesses in comparison to competitors in order to determine
how strong those strengths actually are. A thorough SWOT analysis should also
look at an opportunity or threat's size in order to see how it is related with the
company's strengths and weaknesses. While a SWOT analysis can be simple

and straightforward, more research and analysis is usually needed in order to

obtain a comprehensive picture.

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