Strategies are actions a business takes to compete more aggressively, to acquire additional customers and to operate the company more profitably.A successful strategic plan provides the information and guidance the management team needs to run the company with greater efficiency and help the business reach its full potential.The successful strategic plan can inspire managers to be more forward looking every day.Tags: Good Thesis For AutobiographyEssay The Black Arts MovementHealth Care Reform EssayEssay About Native American CultureThesis On MicroencapsulationDissertation References BibliographyCharlie Bone Book ReportKurz ProthesisTrue Value Of Life College Essay
During the planning process, competitors’ weaknesses are analyzed.
The company’s marketing strategies are then designed to take advantage of these weaknesses by positioning the company as offering a superior mix of products and services to its target customers.
Strategic planning helps managers make decisions based on logical assumptions and a clearer view of the future.
Strategic planning creates a game plan for the management team to follow to meet the challenges posed by competitors.
The plan should provide management with quantifiable goals, and forecast revenues and expenses that can later be compared to actual financial results.
Management needs to know which products, services and markets are contributing the most to the company’s bottom line, and which are falling short of expectations.
Positioning also means making sure the company doesn’t waste resources trying to compete in an area where a competitor has already established clear and sustainable market dominance.
The strategic plan helps a company predict what its best opportunities are for growth -- the ideal target customers, the best markets to serve.
Planning provides a logical means to make these decisions -- managers are forced to explain why each decision makes sense and if possible quantify the likely financial benefit of each expenditure.
If a current expenditure cannot be justified, these resources can be freed up for more productive uses.