Effective Planning to Achieve Business Goals

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Businesses and organizations of any size must utilize planning strategies in order to achieve their goals and be successful. The main types of planning within a business organization are strategic planning, tactical planning, operational planning and contingency planning. Strategic planning and tactical planning work together to achieve the high level goals of an organization and successful leaders must understand the relationship between the two to ensure success. Strategic Planning Strategic planning is the highest level of the planning process. Long term goals are established and the desired outcome of the organization as a whole is taken into consideration. At a publicly traded company, the ultimate goal of strategic planning is to ensure financial success in the form of increased stock prices or dividends to shareholders. Strategic planning is generally done at the executive management level. “Strategic planning has long been used as a tool for transforming and revitalizing corporations, government agencies and nonprofit organizations.” (Pirtea, 2009) Strategic planning is a management tool that is used to help an organization operate more efficiently, and in the case of a for-profit organization, also to ensure long-term financial stability of the company. Strategic planning is used for long-term goals. Goal setting is a key fundamental of strategic planning. In order to be a successful strategic planner, a vision for the future of the organization is essential. Making strategic decisions requires a clear understanding of the organization’s objectives and resources and determining a way to find a balance between what is utilmately desired and what is fiscally possible. “Strategic planning…stresses the importance of making decisions that will ensure the organization's ability to successfully respond to changes in the environment.” (Resources,

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