Every enterprise has a set of goals, such as profitability, growth, or public service. To achieve those goals, an organization's top management periodically (or even continuously) engages in strategic planning. Achieving and maintaining a competitive advantage usually are primary goals if this strategic-planning exercise. Management often outlines the organization's critical success factors, the key strengths that are most responsible for making the organization successful. Critical success factors enable a company to outperform its competitors. By identifying these factors and ensuring that they are incorporated into the strategic plan, companies are able to maintain an edge over competitors. In addition important critical success factors can be exploited to improve the company's overall competitiveness.
Companies rely on several factors to maintain its competitive edge. viz keeping prices consistently low, standardizing maintenance processes , and improving customer turn around to name a few.
What Is a Strategic Long Range Plan?
Although a statement of goals is necessary to guide and organization, it is important to detail the specific steps required to achieve them. A strategic long-range plan expresses the specific step required to achieve an organization's goals, Because the long-range plan considers the intermediate and distant future, it is usually stated in rather broad terms. Strategic plans discuss major capital investments required to maintain present facilities, increase capacity, diversify products or processes, and develop particular markets.
Long range plans are achieved in year-by-year steps. The guidance is more specific for the coming year than it is for more distant years. The plan for the coming year is called the master budget. I will try to focus on it in coming series.
Long range plans are achieved in year-by-year steps. The guidance is more specific for the coming year than it is for more distant years. The plan for the coming year is called the master budget. I will try to focus on it in coming series.
