Strategic Planning

Have you ever wondered how an organization decides which products and services
to develop, price, promote, and sell? Organizations typically develop plans and
strategies that outline how they want to go about this process. Such a plan must
take into account a company’s current internal conditions, such as its resources,
capabilities, technology, and so forth. The plan must also take into account
conditions in the external environment, such as the economy, competitors, and
government regulations that could affect what the firm wants to do. Organizations
must also offer value to customers and graduates must provide value to their
employers. As such, the value proposition becomes the basis for developing
strategies. Given its importance for both organizations and students, we begin with
the value proposition and then discuss the strategic planning process.
Just as your personal plans—such as what you plan to major in or where you want to
find a job—are likely to change, organizations also have contingency plans.
Individuals and organizations both must develop long-term (longer than a year)
strategic plans, match their strengths and resources to available opportunities, and
adjust their plans to changing circumstances as necessary.