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Yes, it remains the same. More the number of employees of a company, more the value of resources/ assets a company owns, more the value of investment a company makes, more the importance of the strategic planning is for that company.
Strategic planning is actively engaging in a process that identifies change and modifies business activity to take best advantage of change. Therefore, by definition, the rapid the change is , the more important becomes Strategic planning.
The external environment, is not controllable. The managers of a business have no control over business competitors, or changes to law, or general economic conditions. However the managers of a business or organization do have some measure of control as to how the business reacts to changes in its external environment. By properly anticipating these changes and reacting with a strategic plan, business can insulate it from the ill-effects of change brought by external factors. The following are some of the external factors which makes strategic planning more relevant.
Market (Competition):
The strength of business competition is a constantly changing factor in the external business environment. Not only will competitors come and go, but they will also change marketing strategies, product lines and prices. Often such changes are not heralded and business managers must be alert as to what competitors are doing so as to draw a counter strategy.
Technology:
Technological change has been rapid in the last 50 years and is a factor in the external environment that constantly exerts pressure on the business or organization. If businesses do not adapt sufficiently quickly to technological change, they risk losing market share. It's not just that technological change affects the design of products, but even the delivery of services can change. Therefore a proper strategy to counter the rapid changes brought in by Technology becomes more relevant.
Legal:
Taxation is one of most obvious changes in law through legislation. Sometimes taxation changes occur overnight with little warning and sometimes there is plenty of time for the business to prepare. Other law changes that commonly affect business include Workplace Health and Safety, Industrial Relations, Consumer Protection and Environmental Law, Therefore, strategic planning has to take care of the anticipated changes in Law also.
Political:
Like law, changes in government policy can be well notified and discussed, or without warning. As an example of how government policy has an effect, is that many organizations depend on government financial assistance. When there is a change of government, such funding assistance can disappear in a short space of time. Therefore Strategic planning has to anticipate and take care of any regime change.
Therefore, Strategic planning becomes all the more important in a rapidly changing business environment.
Importance Of Strategic Planning And Management In The Business Environment. Strategic planning is the most important key for solving strategic tasks; it is the process of developing, controlling and maintaining a strategic balance between organizational goals and resources in the market environment.
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