Key Steps in Strategic Planning and Management Concepts
Strategic Planning Process Steps
Define Mission and Objectives
Identify the organization’s purpose and set clear long-term goals.
Environmental Analysis
Study the internal and external environment using tools like SWOT, PEST, and competitor analysis.
Identify Opportunities and Threats
Understand external factors that may help or harm the organization.
Identify Strengths and Weaknesses
Analyze internal resources, skills, capabilities, and limitations.
Formulate Strategies
Develop long-term strategies for growth, market expansion, product improvement, and competitive advantage.
Evaluate and Select Best Strategy
Compare different strategic options and choose the most effective one.
Implement the Strategy
Allocate resources, assign responsibilities, communicate plans, and take action.
Monitor and Control
Regularly review performance, compare with goals, and make necessary changes.
Core Management Concepts
1. Administration Defined
Administration refers to the process of managing and controlling the activities of an organization to achieve its goals. It includes planning, organizing, directing, and coordinating resources like people, money, and materials.
2. Motivation Defined
Motivation is the internal or external force that encourages a person to act, work, or behave in a particular way.
In simple words: Motivation is what drives people to work harder and achieve goals (such as salary, appreciation, promotion, or interest).
3. Decentralization Defined
Decentralization is the distribution of decision-making power from top-level management to lower-level employees.
In simple words: Decentralization means giving authority to lower levels so decisions can be taken faster and locally.
SWOT Analysis Breakdown
SWOT Analysis is a strategic planning tool used to identify the internal strengths and weaknesses of an organization, along with the external opportunities and threats.
Full Form:
- S – Strengths (internal positive factors)
- W – Weaknesses (internal negative factors)
- O – Opportunities (external favourable factors)
- T – Threats (external harmful factors)
Comparison: MIS Planning vs. Business Planning
| Point | MIS Planning | Business Planning |
|---|---|---|
| 1. Definition | Planning for the information needs, systems, databases, and technology required in an organization | Planning for the overall goals, strategies, and operations of a business |
| 2. Focus | Focuses on data, information flow, IT infrastructure, and reporting | Focuses on market strategy, finance, production, sales, and growth |
| 3. Purpose | To ensure managers get the right information at the right time for decisions | To guide the future direction and success of the business |
| 4. Time Orientation | More short-term or medium-term (system upgrades, software planning) | Long-term (3–5 years of company goals and strategy) |
| 5. Responsibility | Handled by IT managers, system analysts, and MIS experts | Handled by top management (CEO, directors) |
| 6. Output | MIS reports, data flow diagrams, system designs, IT policies | Business goals, budgets, marketing plans, growth strategies |
| 7. Dependency | Supports business planning by providing accurate information | Uses MIS information to make better decisions |