Business Plan or Strategic Business Plan

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Business Plan or Strategic Business Plan

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The terms Strategic Business Plan and Business Plan are used interchangeably. But there is a difference between these two terms. Strategic Business Plan is long term in nature and Business Plan is mid or short term in nature. Strategic Business Plan is the outcome of strategic planning process. Strategic Business Plan is a tool to transform the company from the current state to the desired future state, which is also known as vision. Strategic Business Plan lays out the guidance, direction, products, services, resources, capabilities, capacities, tactics, tools, and partnerships to realise the vision.

 Strategic Business Plan Techniques

The following business analysis techniques are widely used in the strategic business planning process.

1. SWOT Analysis
2. STEEPLE Analysis
3. Brainstorming
4. Benchmarking
5. Process Mapping
6. Porter’s Five Forces
7. Resource Audit
8. Boston Box
9. Ansoff’s Matrix
10. Business Model Canvas

11. Balanced Scorecard 12. McKinsey 7-S Model
13. Document Analysis
14. Surveys
15. Porter’s Value Chain
16. Decision Analysis
17. Market Research
18. Mind Maps
19. Risk Analysis 

Who drives the Strategic Business Planning Process?

Strategic business planning is the highest level of planning that happens in an organisation. Typically, strategic business plan is carried out as a dedicated exercise at least once in a year to give shape for the strategic plan for the next say 5 to 10 years. The 5-year plans are relatively more common. The more the disruption in the industry, the duration of the plan is shorter and more frequent. The process is driven by the senior management and facilitated by business consultants. Strategic business plan sets the stage for all other forms of planning within an organisation; hence it is a top-down approach. Strategic Resource Planning is a parallel activity for capacity management.  

Strategic Business Planning Steps

The following are the important steps in strategic business planning.
1. Define the Current State
2. Establish the Future State
3. Develop Process Maps
4. Conduct Risk Analysis
5. Perform Resource Audits
6. Interview Key Stakeholders
7. Define Strategy
8. Communicate Strategy
9. Establish KPIs

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