Strategic Planning, Types of Strategic

Strategic planning is a systematic process that organizations use to define their direction and make decisions on allocating their resources to pursue this direction. It involves setting goals, making informed decisions on allocating resources to pursue those goals, and determining the actions needed to achieve them. There are different types of strategic planning that organizations may employ based on their goals, timelines, and the nature of their business. Here are several types of strategic planning:

1. Corporate-level Strategic Planning:

This type of planning focuses on the overall strategy of the entire organization. It involves decisions related to the allocation of resources across various business units or product lines.

2. Business-level Strategic Planning:

Business-level strategic planning is more specific and concentrates on how a particular business unit or product line will compete in its industry. It involves defining the competitive advantages and market positioning for that business segment.

3. Functional-level Strategic Planning:

Functional-level planning is narrower in scope, focusing on the strategies within specific functional areas such as marketing, finance, operations, or human resources. It ensures that each function aligns with the overall organizational strategy.

4. Long-term Strategic Planning:

This type of planning looks further into the future, typically beyond five years. It involves setting long-term goals and developing strategies to achieve them. Long-term planning is common in industries with slow rates of change.

5. Short-term Strategic Planning:

Short-term strategic planning is more tactical and focuses on achieving objectives within a shorter timeframe, often within one to three years. It is more adaptable to changes in the business environment.

6. Market-based Strategic Planning:

Market-based planning centers around understanding and responding to changes in the market. It involves assessing market trends, customer needs, and competitive forces to formulate strategies that align with market dynamics.

7. Resource-based Strategic Planning:

Resource-based planning focuses on leveraging an organization’s internal resources and capabilities to gain a competitive advantage. It involves assessing and optimizing internal strengths and addressing weaknesses.

8. Competitive Strategic Planning:

Competitive planning involves analyzing the competitive landscape and positioning the organization to gain a competitive edge. It includes strategies related to pricing, differentiation, and market positioning.

9. Adaptive Strategic Planning:

Adaptive planning is responsive to changes in the external environment. It emphasizes flexibility and the ability to adjust strategies quickly based on shifts in market conditions or unforeseen events.

10. Incremental and Disruptive Strategic Planning:

– Incremental planning involves making small, gradual changes to existing strategies. Disruptive planning, on the other hand, involves more radical and transformative changes, often in response to disruptive innovations or shifts in the industry.

11. Cooperative and Competitive Strategic Planning:

– Cooperative planning involves collaboration with other organizations or entities, such as partnerships or alliances. Competitive planning is focused on gaining a competitive advantage over other entities.

12. Digital Strategic Planning:

– In the digital age, organizations may engage in strategic planning specifically geared toward leveraging digital technologies. This can include strategies related to digital transformation, data analytics, and online presence.

The choice of the type of strategic planning depends on the organization’s goals, industry dynamics, and the time horizon within which they aim to achieve their objectives. Organizations often use a combination of these strategic planning types to ensure a comprehensive and well-aligned approach to achieving success.