In recent years, companies have been operating in a business environment characterized by high risks and rapid fluctuations, such as declining demand for products and services and increased competition between international and local companies. This exposes the company to losing market share to competitors. Rapid technological transformations and the introduction of artificial intelligence into administrative, financial, and operational processes also pose a significant threat to companies that fail to adapt to these changes.
Furthermore, disruptions to global supply chains and shortages of raw materials or rising prices are among the risks that significantly impact the company and its operations.
These examples, and others, have placed companies in a more difficult position than before and have demonstrated that planning and predicting future changes are essential to business.
Strategic planning is an essential process that is indispensable for determining the company's direction and path, monitoring risks and variables, and developing solutions that help the company avoid these risks as much as possible.
The strategic plan, which is the product of the strategic planning process, involves studying and defining the company's vision and mission, and analyzing its operating environment to identify opportunities and threats, and setting long- and short-term goals.
The strategic plan helps the company transition from chaos, randomness, and ad hoc decisions to a work system based on vision, analysis, and the study of risks and variables.
Through the strategic plan, the company can focus on business priorities and make sound decisions based on real information and indicators. It can accurately identify employee performance levels and, consequently, develop training programs to address performance deficiencies and appropriate incentive programs.
It helps the company attract new investments because investors seek companies based on effective internal systems, planning, analysis, and real indicators.
Through the strategic plan, the company can achieve efficient use of financial and human resources and reduce waste in resources, work time, and project schedules. This positively impacts production costs, increases profitability, and enhances opportunities to enter new markets by improving competitive advantage.
One of the most important problems addressed by the strategic plan is the lack of a shared vision among departments, transforming the company from separate, island-based departments into a connected, interactive organizational body capable of directing capabilities and resources toward directly achieving the company's goals. A strategic plan also helps companies reduce internal conflicts, clearly define responsibilities, establish a system for monitoring and accountability, and prevent overlapping roles. Therefore, operating without a strategic plan is not just a lack of a management document; it is one of the most serious risks threatening a company's survival and continuity.
