What specific type of planning do you think should take place in an organization? Learning Objectives LO 3.2-1 Summarize the strategic planning process. LO 3.2-2 Explain the role of tactical plans in an organization. LO 3.2-3 Describe two types of operational plans. Key Terms strategic planning process business plan mission statement vision statement planning tool SWOT analysis PEST analysis tactic budget schedule policy procedure Section 3.2 Developing Plans LO LO 3.2-1 3 . 2 -1 Strategic Plannning Process Organizations typically perform various types of planning carried out by each level of management, starting with strategic planning by senior management. A strategic plan is designed to achieve the long-term goals of an organization as a whole. It is used to communicate to employees and owners where the organization is today, where it is going in the future, and how it will get there. It is a road map to the future of the organization. The plan projects two years, four years, or more for the future of an organization. Senior management is responsible for creating and putting the strategic plan in action. The strategic planning process involves setting goals and allocating the resources necessary to achieve them. The process helps an organization look to the future and plan how to get there. As shown in Figure 3-4, the steps involved in strategic planning include: • review organizational mission and vision statements • establish organizational goals • conduct situation analysis including internal and external analyses and • formulate the strategic plan. Strategic planning, even though executed by senior management, draws on information provided by other levels of management and employees in the organization. Review Organizational Mission and Vision Statements The strategic planning process begins with a review of the mission statement found in the business plan of the organization. Goodheart-Willcox Publisher Figure 3-4 The strategic planning process involves setting goals and allocating resources necessary to achieve them. Strategic Planning Process Review mission and vision statement Establish organizational goals Conduct situation analysis Formulate strategic plan Copyright Goodheart-Willcox Co., Inc. 45