Strategic planning is the process of defining an organization’s direction and making decisions on allocating its resources to pursue this direction. It involves setting long-term goals and determining the best strategies to achieve them, ensuring that the organization remains competitive and responsive to changes in the market.

Characteristics
– Long-term focus: Strategic planning typically looks at a time frame of three to five years or more.
– Goal-oriented: It involves setting clear, measurable objectives that align with the organization’s mission and vision.
– Resource allocation: It considers how resources such as finances, personnel, and technology will be utilized to achieve goals.
– Environmental analysis: It includes assessing internal and external factors that may impact the organization, such as market trends, competition, and regulatory changes.
– Flexibility: A good strategic plan is adaptable to changes in the business environment.

Examples
– A technology company may develop a strategic plan to expand its market share by investing in research and development for new products.
– A nonprofit organization might create a strategic plan to increase community engagement and fundraising efforts over the next five years.
– A retail business could implement a strategic plan to enhance customer experience by integrating online and in-store shopping options.