MAJOR PROJECT REPORT

ON
STUDY OF IMPORTANCE OF STRATEGIC PLANNING
FOR COMPANY’S PERFORMANCE
Submitted in partial fulfilments of requirement of
BACHELOR OF COMMERCE (HONS.)

B.COM (H)-VI
BATCH 2021-2024
SUBMITTED TO: SUBMITTED BY:
Mr. Inderjeet Singh Khushi Agicha
Assistant Professor 01525588821

JIMS ENGINEERING MANAGEMENT TECHNICAL

CAMPUS

1
 CERTIFICATE
This is to certify that KHUSHI AGICHA of B.com(H) has completed this
project on “STUDY OF IMPORTANCE OF STRATEGIC PLANNING FOR
COMPANY’S PERFORMANCE” on her own. Her work is to my satisfaction.

Mr. Inderjeet Singh

Assistant professor

2
 DECLARATION
I, KHUSHI AGICHA of B.com(H) from JIMS ENGINEERING MANAGEMENT
TECHNICAL CAMPUS hereby declare that I have completed this project on
“STUDY OF IMPORTANCE OF STRATEGIC PLANNING FOR
COMPANY’S PERFORMANCE” is my work.

Khushi Agicha
01525588821

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 ACKNOWLEDGEMENT
A lot of effort has gone into this training report and for that I would like to
acknowledge all those who have contributed to completing this project.

I am highly indebted and extremely thankful to Mr. Inderjeet Singh, Assistant

Professor at Jims Engineering Management Technical Campus, who as my
guide was a constant source of inspiration and encouragement to me. The
strong interest in Evinced by him has helped me in dealing with the problems
I faced while my project work.

I express my profound sense of gratitude to them for their timely help and
cooperation in completing this project.

Lastly, I would like to thank my entire beloved family and friends who
provided me with monetary as well as non-monetary support and when
required without which this project would not have been complicated on time.

Khushi Agicha

01525588821

CONTENTS

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S.NO DESCRIPTION PAGE NO.
1 Executive Summary 6
2 Chapter 1: Introduction 7
3 Chapter 2: Objectives of Study 15
4 Chapter 3: Literature Review 16
5 Chapter 4: Research Methodology 19
6 Chapter 5: Analysis and Interpretation 25
7 Chapter 6: Findings and Interferences 36
8 Chapter 7: Limitations 41
9 Chapter 8: Conclusion and Recommendations 42
10 Appendices 44
11 Bibliography 47

Executive Summary

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This project is about understanding the concept of importance of strategic
planning adopted by various companies in India and analyzing how
management adopted these planning in an organization and know the
effectiveness and efficiency at the same time.

In today's era, rapid change in strategic planning is the most important factor
because of the changing environment rapidly. Taking up most care and
concern of the work culture of an organization is an important step in keeping
the customer happy and earning profits.

Basically, this study focuses on why, strategic Planning is important to bring

efficiency to the organization. I have conducted the study in the Indian
organization to know About the impact of strategic planning on the
performance of employee as well as company, it is highly imperative for
every organization. To retain and use their valuable information about their
employees and enhance their business culture work, strategic planning. It
plays a major role in increasing the sales of a firm. A strategic plan is
designed by the top management of the firm keeping the points introduced
by the other members of the organization. Research work has been carried
out with both sources of information, i.e. Primary and secondary sources and
thereafter graphical and analysis of the responses received has been made
for a brighter understanding of the viewer. Mainly the purpose of this study
is to get a close look of understanding.

CHAPTER 1

INTRODUCTION
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STRATEGIC PLANNING

Strategic planning is the process of creating and implementing business

strategies to achieve long-term goals. It involves integrating various
departments to accomplish strategic goals. The concept became popular in
the 1950s and 1960s, fell out of favor in the 1980s, but was revived in the
1990s and remains relevant in modern business.

A strategy involves setting goals, determining actions to achieve them, and

integrating resources into action. It describes how objectives will be achieved
through resources. The top leadership usually decides on the strategy, which
can be planned or emerge as the organization assesses its position or
competition.

Strategic planning helps link strategy formulation and application processes,

while strategic design involves integrating structured thinking. Strategic
planning analyzes naturally, while strategic design involves connecting dots
with structured thinking.

STRATEGIC PLANNING PROCESS

The Strategic planning process requires considerable thought and planning

on the part of a company's upper-level management. Before settling on a
plan of action and then determining how strategically to implement it, the
executives may consider many possible options. In the end, of a company
management will hopefully settle on as Strategy that is more likely to produce
positive results and then can be executive in a cost-efficient manner with the
higher likelihood of success while avoiding the undue financial risk.
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The development of execution of strategic planning are typically viewed as
consisting of beings performed in four critical steps.

1. STRATEGY FORMULATION

This stage involves defining the organization's mission, vision, and

strategic objectives. It also includes analyzing the internal and external
environment to identify strengths, weaknesses, opportunities, and
threats (SWOT analysis). Based on this analysis, strategies are
developed to achieve the organization's goals.

2. STRATEGY IMPLEMENTATION

Once the strategies are formulated, they need to be implemented

effectively. This stage involves developing action plans, allocating
resources, and implementing strategies across the organization. Clear
communication and coordination are essential during this stage to
ensure that everyone is aligned with the strategic objectives.

3. STRATEGY EVALUATION

The evaluation stage involves monitoring and assessing the progress

of the strategies. Key performance indicators (KPIs) are used to
measure the effectiveness of the strategies and identify any areas that
need improvement. Regular evaluation allows organizations to make
necessary adjustments to ensure that they are on track to achieve their
goals.

4. OUTCOMES

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 The outcomes stage involves assessing the overall impact of the
strategic planning process. This includes evaluating whether the
organization has achieved its strategic objectives and assessing the
overall effectiveness of the strategic planning process. The outcomes
stage also provides an opportunity to learn from the process and make
improvements for future strategic planning efforts.

BENEFITS OF STRATEGIC PLANNING

1. Direction and Focus: It provides a clear sense of direction and

priorities for the organization, ensuring that everyone is working
towards the same goals.
2. Alignment: It helps align the efforts of different departments and
teams towards common objectives, improving coordination and
efficiency.
3. Resource Allocation: It enables better allocation of resources,
ensuring that resources are used effectively to achieve strategic goals.
4. Risk Management: It helps identify and mitigate risks by analyzing the
internal and external environment, allowing organizations to anticipate
and respond to challenges.
5. Opportunity Identification: It helps identify new opportunities for
growth and innovation, enabling organizations to capitalize on
emerging trends and market changes.
6. Performance Measurement: It provides a framework for measuring
performance against strategic objectives, enabling organizations to
track progress and adjust as needed.
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 7. Organizational Learning: It encourages a culture of learning and
adaptation, allowing organizations to continuously improve and stay
competitive in a dynamic environment.
8. Stakeholder Engagement: It involves stakeholders in the planning
process, ensuring that their interests and concerns are considered,
leading to increased buy-in and support for the organization's goals.

PURPOSE OF STRATEGIC PLANNING

Strategic planning is a systematic process that helps you set an ambition for
your business's future and determine how best to achieve it. Its primary
purpose is to connect three key areas.

• Mission: defining your businesses purpose

• Vision: describing what you want to achieve
• Plan: outlining how you want to achieve your ultimate goals

Strategic planning is different to business planning. It requires stepping back

from your day-to-day operations and articulating where your business is
heading by setting long term goals, objectives and priorities for the future.

The purpose of strategic planning is to define an organization's direction and

make decisions on allocating its resources to pursue this direction. It involves
setting goals and objectives, determining actions to achieve these goals, and
mobilizing resources to implement the actions. Strategic planning helps
organizations adapt to changing environments, focus on their priorities, and
align their efforts toward common goals. It also provides a framework for
measuring progress and evaluating outcomes, allowing organizations to
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learn from their experiences and improve over time. Ultimately, the purpose
of strategic planning is to ensure that organizations are proactive, agile, and
able to achieve long-term success.

KEY ELEMENTS OF STRATEGIC PLANNING:

In order to alleviate complexities and minimize continued problems, it is

important to follow the strategic planning process and focus on elements may
change slightly, depending on the intensity for your planning process but
here are some of the essential elements you need to consider when carrying
out your own strategic plan.

• VISION

The vision statement outlines what the organization aspires to become

in the future. It is a broad, inspirational statement that describes the
organization's ultimate goals and purpose. A vision statement should
be ambitious, motivating, and provide a clear direction for the
organization.

• MISSION

The mission statement defines the fundamental purpose of the

organization. It describes why the organization exists, what it does,
and who it serves. A mission statement should be concise, specific,
and focused, reflecting the core values and priorities of the
organization.

• SHORT TERM GOALS:

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 Short-term goals are specific, measurable objectives that the
organization aims to achieve within a relatively short period, usually
one to three years. These goals are often steppingstones towards
achieving the organization's long-term goals and should be aligned
with its mission and vision.

• SWOT ANALYSIS:

SWOT analysis is a strategic planning tool that helps organizations

identify their Strengths, Weaknesses, Opportunities, and Threats.
Strengths and weaknesses are internal factors, such as resources,
capabilities, and processes, while opportunities and threats are
external factors, such as market trends, competition, and regulatory
changes. SWOT analysis helps organizations develop strategies that
leverage their strengths, address their weaknesses, capitalize on
opportunities, and mitigate threats.

• LONG TERM GOALS:

Long-term goals are overarching objectives that the organization aims

to achieve over a longer period, typically three to five years or more.
These goals are usually aligned with the organization's vision and
mission and provide a roadmap for its future direction.

• ANNUAL OBJECTIVES:

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 Annual objectives are specific, measurable targets that the
organization aims to achieve within a one-year period. These
objectives are derived from the organization's short-term goals and are
used to track progress towards achieving them. Annual objectives
should be realistic, achievable, and aligned with the organization's
overall strategic direction.

KEY ELEMENTS OF STRATEGIC PLANNING FOLLOWS THE STEPS:

• Where is your business now? This involves understanding as much

about your business as possible including how it operates internally,
what drives its profitability, and how it compares with competitors.
Keep your review separate from day-to-day work and be realistic
detached and critical in distinguishing between the cause and effect of
how your business operates, you should also write it down and review
it periodically.
• Where do you want to take it? Here you need to set out your top-
level objectives, work your vision, mission, objectives, values,
techniques and goals. Where do you see your business in five or ten
years? What do you want to be the focus of your business and your
source of competitive advantage over your rivals in the marketplace?
This step should be foundation for the final plan and motivate change
• What do you need to do to get there? What changes will you need
to make to deliver on your strategic objectives? What is the best way
to implement those changes?

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 CHAPTER 2

OBJECTIVES OF STUDY
1. To understand the relationship between strategic planning and
organizational growth
2. To find out the strategic planning factors for improving the
organizational performance
3. To analyze the organization’s performance based on its strategic
planning

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 CHAPTER 3

LITERATURE REVIEW

Importance and Strategic Planning of Team Management –

Vishal Dineshkumar Soni (July 2022)

The present study focuses on the importance of team management in any

organization and system. The role of teamwork can be attributed towards
achieving successful goals and targets in comparison with the sole efforts
from any individual. Ever before the knowledge of management skills and
team development emerged, there was a group effort which we devoted to
carrying out the work. The introduction of management skills has uplifted the
process with innovative strategies and management tools with different team
members and their roles. In the present study, different components of team
management and their protocols to organize successful team strategies are
discussed in the present study.

Digital transformation and entrepreneurship process SMEs of

India: a moderating role of adoption of AI-CRM capability and
strategic planning- Sheshdhar Chatterjee, Ranjan Chaudhuri
(July 2022)

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The purpose of this study is to identify the determinants that could impact
corporate digital entrepreneurship for the small and medium enterprises
(SMEs) of India. The study also investigates the moderating role that
adopting artificial intelligence (AI)-customer relationship management
(CRM) capability and strategic planning has in corporate digital
entrepreneurship.

The study highlights that perceived usefulness, perceived ease of use and
willingness to change significantly impact corporate digital entrepreneurship
for the SMEs of India. The study also highlights that the two moderators have
significant impacts on the relationships between corporate digital
entrepreneurship and its predictors.

Does Strategic Planning improve organizational

performance – Richard M. Walker, (October 2023)

Strategic planning is a widely adopted management approach in

contemporary organizations. Underlying its popularity is the assumption that
it is a successful practice in public and private organizations that has positive
consequences for organizational performance. Nonetheless, strategic
planning has been criticized for being overly rational and for inhibiting
strategic thinking. This article undertakes a meta-analysis of 87 correlations
from 31 empirical studies and asks, does strategic planning improve
organizational performance? A random-effects meta-analysis reveals that
strategic planning has a positive, moderate, and significant impact on
organizational performance. Meta-regression analysis suggests that the
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positive impact of strategic planning on organizational performance is
strongest when performance is measured as effectiveness and when
strategic planning is measured as formal strategic planning. This impact
holds across sectors (private and public) and countries (U.S. and non-U.S.
contexts). Implications for public administration theory, research, and
practice are discussed in the conclusion.

Strategic thinking, strategic planning, strategic innovation

and the performance of SME’s: the mediating role of human
capital- Nagwan AlQareshi (September 2020)

Strategists have unique skills and abilities to connect the past and the
present to predict what might happen in the future. The current study is the
culmination of several research ideas in the field of Strategic Thinking (ST),
Strategic Planning (SP) and Strategic Innovation (SI) in relation of Human
Capital (HC). The survey method was used to collect data from 235 SMEs in
the manufacturing industry of Yemen. Results indicate that ST, SP and SI
have a significant effect on HC. The mediating effects of HC on the
relationship between ST, SP and SI and SMEs’ performance were also
examined. The findings of this study offer important insights for managers
of SMEs, researchers and policymakers to further understand the effects of
ST, SP SI, HC and SMEs’ performance. SMEs should also be encouraged
to develop their ST, SP, SI and HC to improve their performance. Finally, this
study serves not only to clarify the mechanism between HC and SME’s
performance but also to generalize the ST, SP and SI results in the Yemen
and Middle East context.
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 CHAPTER 4

RESEARCH METHODOLOGY

RESEARCH:

Research refers to the systematic investigation into and study of materials

and sources to establish facts and reach new conclusions. Research
comprises "creative work undertaken on a systematic basis to increase the
stock of knowledge, including knowledge of humans, culture and society,
and the use of this stock of knowledge to devise new applications." It is used
to establish or confirm facts, reaffirm the results of previous work, solve new
or existing problems, support theorems, or develop new theories. In the
broadest sense of the word, the definition of research includes any gathering
of data, information, and facts for the advancement of knowledge. It is a
process of steps used to collect and analyze information to increase our
understanding of a topic or issue". It consists of three steps: pose a question,
collect data to answer the question, and present an answer to the question.

The process used to collect information and data for the purpose of making
business decisions is called Research Methodology. The methodology may
include publication research, interviews, surveys and other research
techniques, and could include both present and historical information.

The purpose of Methodology is to describe the purpose involved in Research

Work. This includes the overall Research Design, the data collection method.

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Research Methodology refers to the various sequential steps to be adopted
by a Researcher in studying a problem with certain object or objective in view.

RESEARCH DESIGN

Research design refers to the overall strategy or plan that outlines how the
research will be conducted. It includes the methods and procedures that will
be used to collect and analyze data, as well as the rationale behind these
choices. A good research design is crucial for ensuring that the research is
valid, reliable, and ethical.

Types of Research Design:

1. Descriptive Research: Descriptive research aims to describe the

characteristics of a population or phenomenon. It is used to gather
information about the current state of affairs and does not seek to
establish causal relationships.
2. Correlational Research: Correlational research examines the
relationship between two or more variables. It is used to determine
whether changes in one variable are associated with changes in
another variable, but it does not imply causation.
3. Experimental Research: Experimental research involves
manipulating one or more variables to observe the effect on another
variable. It is used to establish cause-and-effect relationships and is
often conducted in controlled laboratory settings.
4. Qualitative Research: Qualitative research focuses on exploring
attitudes, behaviors, and experiences through methods such as

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 interviews, observations, and case studies. It aims to provide a deep
understanding of a particular phenomenon.
5. Quantitative Research: Quantitative research involves the collection
and analysis of numerical data to test hypotheses and answer research
questions. It aims to quantify the relationship between variables and is
often conducted using surveys or experiments.

Sample Size

The sample size is an important feature of any empirical study in which the
goal is to make inferences about a population from a sample. In practice, the
sample size used in a study is usually determined based on the cost, time,
or convenience of collecting the data, and the need for it to offer sufficient
statistical power. In complicated studies there may be several different
sample sizes: for example, in a stratified survey there would be different
sizes for each stratum. In a census, data is sought for an entire population;
hence the intended sample size is equal to the population. In experimental
design, where a study may be divided into different treatment groups, there
may be different sample sizes for each group.

A sample size of sixty (60) respondents is used for the survey.

Data Collection:

Data collection involves gathering information or data relevant to the

research question or problem. It can be done through various methods, such
as surveys, interviews, observations, or experiments. The choice of data
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collection method depends on the research objectives, the nature of the data,
and the resources available.

There are two types of data collection methods:

• Primary data

Primary Data is the data which is originally collected by an

investigator or agency for the first time for a specific purpose. The
source from which the primary data is collected is called the primary
source. Such data is original in character as it is collected for the
first time. It is first-hand information. Primary Data once collected
and published becomes Secondary Data. There are many methods
to collect primary data and the main methods include:

a. Questionnaire
b. Interviews
c. Observations
• Secondary data

The data which is not directly collected but rather obtained from the
published or unpublished sources is known as Secondary Data. It is
also known as Secondhand Data. This is not original data since the
enumerators or investigators themselves do not collect these data.
They simply make use of the data collected by the others. Common
sources of secondary data include:

a. Census
b. Survey
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 c. Internet
d. Journals
e. Books
f. News papers
g. Organizational records

Primary Data Collection Tool are used while preparing this Project
Report: questionnaire

Questionnaire
A questionnaire is a research instrument that consists of a set of questions
or other types of prompts that aims to collect information from a respondent.
A research questionnaire is typically a mix of close-ended questions and
open-ended questions. Open-ended, long-form questions offer the
respondent the ability to elaborate on their thoughts. Research
questionnaires were developed in 1838 by the Statistical Society of London.

The data collected from a data collection questionnaire can be both

qualitative as well as quantitative in nature. A questionnaire may or may not
be delivered in the form of a survey, but a survey always consists of a
questionnaire.

Here are some examples of questionnaire

1. Customer Satisfaction Questionnaire: The customer satisfaction
questionnaire can be used in any form and in any situation where there
is an interaction between a customer and an organization.

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2. Product Use Satisfaction Questionnaire: This questionnaire is used to
understand product usage trends and collect customer preference
about products.
3. Company Communications Evaluation Questionnaire: This
questionnaire is used to evaluate internal and external communication
and to check if the policies of the organization are being enforced
across the board.
4. The questionnaire design depends on the type of information that is
required to be collected. Qualitative questionnaires are used when
there is a need to collect exploratory information or to prove or disprove
a hypothesis. Quantitative questionnaires are used to validate or test
any previously generated hypothesis.

CHAPTER 5

ANALYSIS AND INTERPRETATION

Data analysis has multiple facets and approaches, encompassing diverse
techniques under a variety of names, and is used in different business,
science, and social science domains. In my study of Importance of Strategic
Planning for company’s Performance I have used Questionnaire for
conducting the analysis

1. Gender

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 Particulars No. Of respondents Percentage of respondents
Male 46 76.66%
Female 14 23.33%
Table no. 5.1

Fig 5.1: gender

Survey brings upon the employees of the different company. According to

the data 23.3% respondents is in female category, 76.6% respondents are
male, 0 respondent belongs to the category of others. Thus, the data shows
that most of the company give less opportunity to the female compared to
men to provide a platform to excel their dreams.

2. Which of the following defines strategic planning?

Particulars No. Of respondents Percentage of respondents

Clarifies organization 14 23.33%
Based on strategic thinking 11 18.33%
Focused on entire 08 13.33%
organization
All of these 27 45%

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Table no 5.2

Figuren no. 5.2

According to the data 23% employee is in favor of clarifies organization,

18.33% employee are in favor of based on strategic thinking, 13.33%
employee think focused on entire organization and 45% employee think all
of these are example of defining the strategic planning.

Hence few employees are in favor of focused on entire organization and

majority employee thinks that all of these are defining the strategic planning.
3. Which activities are the most important part of strategic planning?

Particulars No. Of respondents Percentage of respondents

Strategic thinking 12 20%
Strategic discussion 14 23.33%
Strategic plan of document 16 26.67%
Writing a mission statement 18 30%
Table no. 5.3

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fig 5.3

The total number of respondents is 60 therefore 20% employee are in favor

of strategic thinking, 23% employee are thinking the correct answer is
strategic discussion, 26.67% employee are in favor of writing the strategic
plan document, 30% employee thinks that the correct answer is the writing
the mission statement.
27%

The majority of employees are in favor of the important part of strategic

planning, which is writing the mission statement.

4. Who is involved in your process?

Particulars No. Of respondents Percentage of respondents

Board of directors 04 6.66%
Strategic planning staff 05 8.33%

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 Line and staff departments 16 26.6%

Executive management 11 18.33%

Other management 24 40%
Table no. 5.4

Fig 5.4

The above chart shows that the there is 6.66% who is boards of directors in
different company who fill this survey,8.33% who are in executive
management in different company, 18.33% who are in strategic planning
department,26.66% who are in line and staff departments ,40% are in other
management.

Therefore, most of the respondent who fill this survey are in other
management department

5. How frequently is strategic planning developed?

PARTICULARS NO. OF RESPONDANTS PERCENTAGE OF

RESPONDANTS
Annually 10 16.66%

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 Every year with annual 14 23.33%
update
Intermittently 36 60%
Table no 5.5

Fig 5.5

This report shows that.16.66% respondents say that their company is

annually developed the strategic plan, 23.33% respondents say that their
company is frequently updating the strategic plan with every year with an
annual update, 60% respondent say that their company intermittently update
the strategic plan. The majority of respondents say their company
intermittently updates the strategic plan.

6. Rate the factors that play a strong role in making a strategic plan
for increasing the organizational performance?

Factor Weakest (2) (3) (4) Very strong

Factor (1) (5)
Organizational culture 14 10 12 12 12
leadership 12 12 10 12 14
Organizational goal 12 12 12 10 14
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 Project management 10 12 12 12 14
innovation 14 12 12 10 12
Table no. 5.6

Fig 5.6

According to the ratings provided by the respondents it can be considered

that the organizational culture is the weakest factor and do not play a major
role in making a strategic plan for increasing the organizational performance
whereas, Leadership is the strongest factor for improving the performance
of a company through strategic planning.

7. Does strategic plan enhance better organizational performance?

PARTICULARS NO. OF PERCENTAGE OF

RESPONDANTS RESPONDANTS
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 YES 47 78.33%
NO 02 3.33%
MAYBE 11 18.33%
Table 5.7

Fig 5.7

Data shows that 78.33% employee thinks that strategic plan boosts the
organization performance, 3.33% employee thinks that no performance is
boosts during and after the strategic plan, 18.33% respondents are in
doubts that maybe the performance is boosts during the strategic plan or
not. Therefore, most of the employees think that the strategic plan boosts
organizational performance.

8. Does strategic plan affect the sales of the company?

particulars No. Of respondents Percentage of

respondents
yes 39 65%
no 07 11.66%
maybe 12 20%

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 sometimes 1 1.66%
Table no. 5.8

Fig 5.8

Around 11.66% of people said that strategic planning does not affect the
sales of a company. Whereas others concluded that yes strategic planning
affects the sales of a company. 88.34% of people mentioned that the
strategic plan directly affects the sales of the company.

9. How many times is the meeting conducted to discuss and amend

the strategic plan?

particulars No. Of respondents Percentage of

respondents
weekly 8 13.3%
monthly 42 70%
quarterly 7 11.6%
Fortnightly 3 5%
Table no. 5.9
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Fig 5.9

13.33% people response their company schedule meeting on discussing and

amending the strategic plan on weekly basis, 70% people response their
company schedule meeting on discussing and amending the strategic plan
on monthly basis, 12% people response their company schedule meeting on
discussing and amending the strategic plan on quarterly basis, 5% people
response their company schedule meeting on discussing and amending the
strategic plan on fortnightly basis.

10. On a scale of 1-10 how useful do you think strategic planning has
been at your place?

particulars No of respondents Percentage of

respondents
1 4 6.6%
2 8 13.33%
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 3 10 16.66%
4 16 26.66%
5 22 36.66%
Table 5.10

Fig 5.10

7% people give 1 rating to thinks it’s useful to do strategic planning in

company, 13% people give 2 rating to thinks it’s useful to do strategic
planning in company, 17% people give 3 rating to thinks it’s useful to do
strategic planning in company, 27% people give 4 rating to thinks it’s useful
to do strategic planning in company, 36% people give 5 rating to thinks it’s
useful to do strategic planning in company.

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 CHAPTER 6

FINDINGS AND INFERENCES

In the study It was found that it was found that the importance of strategic
planning helps in provide being information to assess this and frame
strategies to minimize risk and invest in safe business of and invest in safe
business opportunities. And knowing where the organization stands and
where they want to reach so that all threats can be exploited, provides
information on the strengths and weaknesses of the company. Strategic
planning is” a thorough self-examination regarding the goals and means of
their accomplishment so that the enterprise is given both direction and

34
cohesion.
In the study we have found that the strategic planning is important because
of following mentioned benefits:

1. It allows the organization to be proactive rather than reactive.

2. It sets up a sense of direction.
3. It increases operational efficiency
4. It helps to increase market share and profitability
5. It can make a business more durable

Also, in the study we have identified key points that help in making a strategic
plan for improving organizational performance. A strategic plan provides
management discussions and decision making in determining resource and
budget requirements to accomplish set objectives, thus increasing
operational efficiency.

• Strategy and mission: Changes in strategy and mission are often

difficult to map out but as a business owner you need to prepare to
change strategies if needed.
• Organizational structure: this concerns the roles, objectives, and
responsibilities of individuals, departments, and teams. Structures
change some are relatively minor, while some such as mergers are
considered extreme and intense
• People: Organizational improvements in regard to personnel consist of
turnover, hiring, training and other changes that will be beneficial for
the organization

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 • Knowledge: Changes/ improvements to the knowledge of an
organization are critical for process, progress and initiative. These
projects ensure the high priority ones have the proper resources to
ensure success. This requires high involvement and commitment on
the part of employees to spend the time required on the project.

RELATIONSHIP BETWEEN STRATEGIC PLANNING

AND ORGANIZATIONAL GROWTH
Strategic planning and organizational growth are closely interconnected in a
company. Strategic planning is a process of defining a company’s direction
and making decision on allocating resources to pursue this direction it
involves setting goals, determining action to achieve These goals and
organizing resources to execute the action.

Organizational growth on the other hand refers to increasing in a company

size, revenue, market share, or other indicators of expansion and
development growth can be achieved through various strategy such as
expanding into new market, developing new product services for increasing
efficiency and productivity.
Strategic planning play social role in driving organizational growth by:

1. Setting Direction: Strategic planning helps the company define its

vision, mission, and long-term objectives, providing a clear direction for
growth.

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 2. Resource Allocation: Through strategic planning, companies identify
the resources needed to achieve their goals and allocate them
efficiently, ensuring that resources are used effectively to support
growth initiatives.
3. Identification of Opportunities and Threats: Strategic planning
involves analyzing the external environment to identify opportunities
for growth and threats to the organization, allowing the company to
proactively respond to changes in the market.
4. Adaptation to Change: Strategic planning helps organizations
anticipate and adapt to changes in the market, industry, or internal
environment, ensuring that they remain competitive and able to sustain
growth over time.
5. Performance Measurement: Strategic planning includes establishing
key performance indicators (KPIs) to measure progress towards
strategic goals, providing feedback on the effectiveness of growth
strategies and enabling adjustments as needed.

Overall, strategic planning provides the roadmap for organizational growth,

guiding the company's decisions and actions to achieve sustainable
expansion and success.

STRATEGIC PLANNING FACTORS FOR IMPROVING

ORGANIZATIONAL GROWTH:

Improving organizational performance through strategic planning involves

considering several key factors. Here are some important ones:

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1. Clear Vision and Mission: Having a clear and compelling vision and
mission statement helps align everyone in the organization toward
common goals, fostering unity and direction
2. SMART Goals: Setting specific, measurable, achievable, relevant,
and time-bound (SMART) goals ensures that objectives are clear and
can be effectively tracked and measure
3. Environmental Analysis: Conducting a thorough analysis of the
internal and external environment helps identify strengths,
weaknesses, opportunities, and threats (SWOT analysis), enabling the
organization to leverage its strengths and opportunities while mitigating
weaknesses and threats.
4. Strategic Initiatives: Developing strategic initiatives and action plans
to achieve goals and objectives helps ensure that the organization is
focused on activities that contribute to its overall success.
5. Resource Allocation: Allocating resources (financial, human,
technological) in alignment with strategic priorities ensures that
resources are used effectively and efficiently to support organizational
goals.
6. Performance Measurement and Feedback: Stabling key
performance indicators (KPIs) and monitoring progress against them
provides feedback on the effectiveness of strategies, enabling
adjustments to be made as needed.
7. Organizational Culture: Creating a culture that supports the
achievement of strategic objectives, such as a culture of innovation,

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 customer focus, or continuous improvement, can significantly impact
organizational performance.

Chapter 7

LIMITATIONS OF THE STUDY

• Biased: the answers of the respondents are based on their personal
experience and not on facts which make up the study. Often it happens
if any employee holds any grudges against their superior of the
organization, they tend to portray an ill image of the organization that
too deliberately.
• Limited information: everything was online therefore it was difficult for
me to collect more information.
• Prevailing time: Due to covid -19 there was no physical interaction with
the teammates and the research wax make through online channels.
• Data accuracy: difficult to find data of needed accuracy. Often the
available data are distantly related to the research problem at hand. It
is difficult to determine their accuracy for the present study.

39
 Chapter 8

CONCLUSION AND RECOMMENDATIONS

This study shows your company's goals and deeply explains why they’re
important in any organization. The strategic planning process also helps you
uncover ways to improve performance. It can, for instance, spark insights
about how to restructure your organization so that it can reach its full
potential. And also, it can define your long-term goals. Assess your current
environment, as well as strengths, weaknesses, opportunities and threats.

Also develop various strategies and tactics to address any identified

problems. Every organization is required to have a strategic plan for
achieving its short term as well as long term goals, if the organization does
not hold a strategic plan, then there are lots of risks associated with it. Having
no strategic plan leads to confusion among the employees, short-term
thinking, lack of unity, leadership indifference and other risks.
In the study above 70% of respondents agreed that strategic planning helps

40
in improving and enhancing better organizational performance. Whereas
below 10% people exclaimed that the strategic planning do not play the
major role in improving the sales of a company and also having no strategic
plan leads to confusion among the employees, short term thinking, lack of
unity, leadership, indifference and other risk. On the other hand, if the
company follows strategic plan, then the organizations enjoy several benefits
because strategic planning allows an organization to be proactive rather than
reactive.

Following recommendations are preferred:

• Required lot of time, money and energy to make the best strategic plan
for the company’s performance.
• The implementation process requires a clearly communicated plan,
implemented that requires full attention, active participation, and
accountability of not only company leaders, but also of all members
across the organization. Managers must continuously develop and
improve synergies among employees to ensure buy-in and to garner
support for the company's objectives and mission. There are instances
where this can become particularly challenging. For example, if a
manager was involved in the strategic formulation process, but not
equally involved in the implementation process, he in turn may not feel
accountable for decisions made.
• External environmental orientation should be encouraged and
thoroughly considered in organizations, which can be achieved
through situational analysis for strategic planning.
41
• Top management or lower management should pay more attention to
the strategic planning process, make necessary contributions and
support to achieve goals and objective of the organization.

Chapter 9

APPENDICES

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 Chapter 10

BIBLIOGRAPHY
1. Vishal Dineshkumar Soni (July 2022)
2. Sheshdhar Chatterjee, Ranjan Chaudhuri (July 2022)
3. Richard M. Walker, (October 2023)
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5. Ramlal Anand (August 2018)
6. Satyavani Raj Kapoor (June 2020)
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Policy and Strategy. (2nd Ed). Lagos: Concept Publications Limited.
8. Kishore Anand & Sushma Devi (2013)
9. Thompson, A. A. & Strickland, A. J. (1993). Strategic Management:
Concepts and Cases. Homewood: Irwin
10. Johnson, G. &Scholes, K. (1993). Exploring Corporate Strategy: Text
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11. Sharpin, A. (1985). Strategic Management. New York, McGraw Hill

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