There are five stages of strategic planning:
- This is the starting point of strategic planning and consists of carrying out situational analysis of the firm in the context of business environment. Here, the firm must determine its relative market position, corporate image, its strength weakness opportunity and thereat (swot).
- It is a process of setting goals for the organisation after it has finalised its vision and mission. Strategic vision of a company is a road map to the future providing specifications about the technology and customer focus, the geographic and product markets to be pursued, the capabilities it plans to develop, and the kind of company that the management is trying to create an organisation. Mission states which customers it serves, what need it satisfies and what type of product it offers.
- At this stage the organisation seeks out the various strategic alternatives it has.
- Out of all the alternatives, the organisation selects the best and th most suitable alternative which is inline with the swot analysis.
- At this stage the implementation and control of the strategy takes place where it carries out situational analysis continuously and the stages are repeated again.