Strategic planning is matching the strengths of an organization to its available opportunities (textbook). To effectively plan strategically the organization must first analyze and collect information about the industry, in which the organization operates. Strategic planning focuses on the interaction with environmental forces, which include competitors, government, and suppliers (textbook). One organization may be able to get more from a supplier than a competitor based on the established relationship. The ability to implement strategic planning is critical for the survival of any organization. Managers must evaluate the environment constantly. Trends in the economy may affect an organization. The automobile industry once operated in a stable environment. However, …show more content…
By the time a reactive manager can make the necessary adjustments, he or she may lose many customers. Proactive planning is the anticipation of future events (textbook). Rather than reacting to the situation as it changes, proactive planning requires that the organization analyze environmental forces and make resource-allocation decisions. By doing this the manager will take the organization to where it needs to be. Managers must have a step-by-step blueprint on how to achieve success. In the healthcare industry, there is a need for strategic planning. It is important to reach a large population in the community to provide excellent care. Baptist Memorial Healthcare recently broke ground for its seventeenth hospital. And days later Methodist LeBonheur Healthcare broke ground for its new campus renovation. Managers at both organizations are keeping track of new practices and partnerships that are implemented. Planning is important in any business venture. It can be the difference in the success or failure of the organization. A manager must know how to implement strategies such as pricing and advertising to attract more business during slow