In regard to a company’s long-term goals and desires, strategic planning is the process by which specific business strategies are developed, implemented, and evaluated. A company’s goal is to accomplish its strategic objectives by successfully integrating many departments (such as accounting, finance, marketing, and human resources). Strategic planning and strategic management are synonymous terms.
Formulation of strategies
An external and internal audit will be performed by a marketing strategy agency prior to formulating a strategy.
SWOT Analysis: This analysis is meant to identify a company’s strengths and weaknesses, as well as its opportunities and threats. Firms identify effective strategies by using SWOT (“Strengths, Weaknesses, Opportunities, and Threats”) analyses. Microsoft, for example, has some strengths. Aside from its outstanding technology, its vast engineering staff, its many years of experience developing software, its large market share, its well-established brand name, and its large bank account, Microsoft has so much to offer. Furthermore, Microsoft is also weak. In response to the analysis, managers decide which plans or markets to pursue or drop, how to effectively allocate resources within the company, and whether to expand operations through joint ventures or mergers.
Organizational success is affected by business strategies over time. Most resources needed for their implementation can only be assigned by upper-level management.
Putting the plan into action
Following the formulation of a strategy, a marketing strategy agency must set specific targets and goals related to putting that strategy into action, as well as make sure that resources are available for its implementation. An implementation’s success depends on how clearly upper management communicates the chosen strategy to the rest of the company and how effectively it motivates all its employees to buy into putting the strategy into practice.
Evaluation of strategies
Success today does not necessarily guarantee success tomorrow, as any savvy business person knows. Managers should therefore assess the results of a chosen strategy after implementation. Evaluation of the strategy involves three critical steps. They are: assessing the internal and external factors that affect its implementation, measuring performance, and taking corrective actions to enhance its effectiveness. For example, after implementing a strategy to improve customer service, a company may discover that it needs to adopt another strategy for customer retention or to even measure customer satisfaction and turnaround rate. To improve customer relations, the company is implementing a new customer relationship management program (CRM). Are you looking to improve your strategy?