Strategic Plan Part I: Conceptualizing a Business

Strategic Plan Part I: Conceptualizing a Business

Conceptualizing a Business

Anyone can assume that the start of any successful business begins as a simple concept. That concept is taken through many steps eventually developing into a large organization or something as simple as the neighborhood Laundromat. This paper will explain that the starting point for any successful business or organization is the development of a strategic plan. The paper will define strategic management and planning, the importance of a strategic plan, and the four functions of management.

Definition of Strategic Management and Planning

Organizations and companies want to be successful on all aspects of business but to create that success a business needs to start with a well thought out plan. A plan that will document the goals of the organization and the strategy needed to accomplish those goals. To develop such a plan, organizations look to strategic management and planning to facilitate their goal achieving process. Strategic planning is, “the process of determining a company's long-term goals and then identifying the best approach for achieving those goals” ("Strategic planning," 2012). According to "Allbusiness" (2012), “it may sound complex, but strategic management simply means planning an overall strategy for your small business that will help achieve your business goals” (Strategic Management for Your Small Business).

For a small business, like the local Laundromat not developing strategic management and planning is like a house without a foundation and without a foundation a house has nothing firm to stand on. Businesses and organizations need strategic management and planning as its foundation so it can grow and thrive into something successful. The process incorporates different aspects of the organization and with analysis these aspects are developed to help ensure success within an organization, among competition, and with customers.

A Strategic Plan and its Importance to the Success of a Business

Strategic planning is basically a roadmap for success and is important because it sets overall goals for a business, which are long-term instead of short-term. Setting long-term goals allows an organization to bring into play what resources are available to the organization to help in accomplishing that goal. According to "Online Business Advisors" (2006), “a strategic plan helps to provide direction and focus for all employees. It points to specific results that are to be achieved and establishes a course of action for achieving them. A strategic plan also helps the various work units within an organization to align themselves with common goals” (Why a strategic plan is important). Through an analysis of the business