Strategic planning involves the organization activities that are undertaken to manage the change that takes place in the external environment of the company. There are three main elements of strategic planning: (Abraham, 2012).
- Strategic Planning and Control – This process requires the changes that should take place in the organizational objectives, in resources and policies that should be used to attain these objectives. Hence, strategic planning and control requires the changes that will help in changing the direction of the organization objectives.
- Management of Planning and Control - This involves ensuring that all the resources that are obtained are efficiently used in order to achieve the objectives of the organization.
- Technical Planning and Control – This involves that acquisition of resources is applied with the activities that apply an optimal relationship between the resources applied and the output level.
The business model of any company describes that how the organization is structured and the methods it applies to maximize profits. Business strategy, on the other hand, illustrates how the company will identify and relate with its business segment and customers, competitors and the actual market environment. Even if the two companies implement the same business model will be able to reap different financial results because of their varied business strategy (Abraham, 2012). For example, the Wal-Mart is sometimes given credit to launch innovative business models in retail sales that dominated the competitors such as Target and K-Mart. It was a business strategy that the company was able to apply, for example, low-cost strategy that Wal-Mart was able to compete intensively with the competitors. The business model was similar to its main competitors.
Reference
Abraham S. (2012) “Strategic Management for Organizations” San Deigo, Bridgepoint Education.
