In business, you might come across the terms planning and strategy, number of times end. Planning is the basic function of management, which seeks to take a look at the future. On the other hand, strategy is one of the components of planning and also known as interpretative planning. The two terms have different meanings and uses in the business world. So take a look at the article that explains the difference between planning and strategy.
|Sense||Planning is thinking ahead, for the actions that will take place in the future.||The best plan has opted for achieving the desired result.|
|What is it?||Planning a roadmap for the execution of any activity.||The strategy is the path chosen to achieve the objectives.|
|Term||Depending on the circumstances.||Long term|
|Part of management functions||s||Sub-part of the decision-making process|
Planning an organized process to think ahead to a future action. It means preparing the plan, which is the sequence of steps that will help to achieve organizational goals. Planning between the five management functions in addition to organizing, monitoring, motivating and guiding and making decisions.
Planning is a future-oriented activity that takes place in the routine decisions of a family, a group of friends, a college, a government and, above all, in business management. It requires the ability to make judgments to choose which action must be done before or after to avoid overlaps in the shares.
The planning needs to define the objectives for which it is necessary to plan after the alternative lines of action have been identified and finally to decide which plan will lead to the destination with success. This does not mean that everything will go according to your plan, or it could even happen that the plan fails halfway, so it also prepares the second list of plans that act as a complementary plan to the original plan if it fails, to achieve the objectives successfully in limited time.
The creation of complementary plans is also part of the planning procedure. Planning must be flexible in nature, so that any change can be made if requested by the organization. With the help of planning, an organization can exercise control over the action, or everything is going as planned or not.
Definition of strategy
The strategy is a major game plan designed to achieve an organization's goals. a mix of moves and competitive actions made by the top level management for the success of the objectives. They are dynamic and flexible in nature. The strategies are based on practical experiences, not on theoretical knowledge, that is realistic and action-oriented activities. It requires an in-depth analysis of the executives on each movement or action, the times of implementation, the sequence of actions, the results, the reactions of the competitors, etc.
In the business world, business strategies have been created for the expansion and growth of entities that include mergers, diversifications, divestitures, acquisitions and many others. Strategies are made based on current situations and conditions prevailing in the corporate environment, but it cannot be said that they are perfect due to people's changing needs and demands, strategies could fail.
Moreover, the market scenario will take an unexpected turn at any time with the blink of an eye and nothing lasts forever. Therefore, the organization must be ready for any unforeseeable changes and must develop a strategy to overcome these situations. Thus, the organization's business strategy is a combination of proactive and reactive strategies.
Key differences between planning and strategy
The main differences between Planning and Strategy are as follows:
- Advance planning and advance preparation for uncertain future events. The strategy is the best plan chosen among the various alternatives for achieving the objectives.
- Planning as a map to orient yourself while strategy is the path that takes you to your destination.
- The strategy leads to planning and planning leads to programs.
- Future-oriented planning, while action-oriented planning.
- Planning takes assumptions, but the strategy is based on practical experiences.
- Planning can be short or long term depending on the circumstances. Unlike strategy, which in the long term.
- Planning is part of the managerial process. On the contrary, the strategy is part of the decision-making process.
Planning is forecasting what needs to be done in the future, but the strategy is a project of what you want to be and where you want to be. Both the Planning and the Strategy are carried out by top level managers as they clearly know the mission and vision of the organization, so they will make their plans and strategies to take a step forward towards their mission and vision. Preventive planning, while strategy is rather competitive, but both aim at the optimal use of scarce resources.