Comparison of Strategic Planning and Strategic Management

Strategic planning refers to the process of analyzing a business environment in order to develop strategies that facilitate attainment of goals and objectives. It includes creation of an organization’s mission, vision, and goals and objectives. It also involves strengthening operations and setting priorities.Advertising We will write a custom essay sample on Comparison of Strategic Planning and Strategic Management specifically for you for only $16.05 $11/page Learn More On the other hand, strategic management refers to the process through which an organization utilizes available resources in order to achieve goals and objectives. It includes specific strategies and activities that are used to attain goals. A critical aspect of strategic management is the determination of how an organization intends to achieve its goals. For example, developing clearly defined ways of achieving specific objectives is an aspect of strategic management. Both tools a re used together, and are important for the growth of an organization. Strategic planning and strategic management are similar in many ways. First, they aim to improve the future welfare of an organization. Strategic planning defines an organization’s goals and strategic management implements strategies in order to attain the goals. Second, they are managerial tools that are used to create successful organizations. Managers use them to achieve organizational goals and objectives. Third, they are used to increase organizational output and performance. One tool cannot attain its goals without the input of the other. Therefore, they play complementary roles that serve a common purpose. Fourth, they are used to identify the strengths and weaknesses of an organization and thus help to position it in the market. For that reason, managers use both tools to strengthen the market presence of their organizations by creating sustainable competitive advantage. Successful companies use st rategic planning and strategic management to propel their organizations to success. It is important to understand how they are applied to fulfill different organizational needs. Differences between the two management tools originate from their roles, scope, and effectiveness. Strategic planning involves setting goals and objectives that an organization intends to achieve. In contrast, strategic management involves implementation of processes that help to attain goals and objectives. Strategic management has a wide scope. It incorporates both formulation and implementation of strategies.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In addition, it includes evaluation of strategies in order to determine whether they are effective or ineffective. On the contrary, the scope of strategic planning is narrow. It only involves formulation of strategies and development of goals and objectives. Th e effectiveness of the two management tools differs. Strategic planning is most successful when the stability of an organization’s internal and external environment is certain, and its future predictable. In contrast, strategic management is most successful when the future of an organization is unpredictable. It is effective in situations that require managers to respond to unpredictable future occurrences. In conclusion, strategic planning and strategic management are tools used by managers and leaders to attain organizational success. They are similar because they aim to improve performance and output, prepare organizations for the future, and discover their strengths and weaknesses for better market placement. They are different because their scope, effectiveness, and methods vary. Strategic planning involves setting goals and objectives, and is most successful when an organization’s stability is certain. In contrast, strategic management involves implementation and evaluation of processes that facilitate attainment organizational goals. It is most effective when the future of an organization is unpredictable. The two management tools are used together because they have a common goal even though they play different roles and apply different methods. This essay on Comparison of Strategic Planning and Strategic Management was written and submitted by user Colleen Wing to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.