The process is about planning because it involves intentionally setting goals (i.e., choosing a desired future) and developing an approach to achieving those goals. In short an organisation can formulate a successful strategic plan using the following methods :
1. Mission and Objectives
The mission statement describes the company's business vision, including the unchanging values and purpose of the firm and forward-looking visionary goals that guide the pursuit of future opportunities.
Guided by the business vision, the firm's leaders can define measurable financial and strategic objectives. Financial objectives involve measures such as sales targets and earnings growth. Strategic objectives are related to the firm's business position, and may include measures such as market share and reputation.
2. Environmental Scan
The environmental scan includes the following components:
- Internal analysis of the firm
- Analysis of the firm's industry (task environment)
- External macroenvironment (PEST analysis)