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Components of the Strategic Planning Process

2.2 Components of the Strategic Planning Process

Learning Objectives

  1. Explain how a mission statement helps a company with its strategic planning.
  2. Describe how a firm analyzes its internal environment.
  3. Describe the external environment a firm may face and how it is analyzed.

Strategic planning is a process that helps an organization allocate its resources to capitalize on opportunities in the marketplace. Typically, it is a long-term process. The strategic planning process includes conducting a situation analysis and developing the organization's mission statement, objectives, value proposition, and strategies. Figure 2.2 "The Strategic Planning Process" shows the components of the strategic planning process. Let's now look at each of these components.

Figure 2.2 The Strategic Planning Process