ADVANTAGES OF STRATEGY PLANNIG

   Not all managers beleive that strategy planning is useful or even possible.Some suggest that the future is too complex and difficult to anticipate.Of course,perfect accuracy in forecasting is impossible since the future holds many uncertaintes.But,what is likely to happen to an organization that does not try to understand those basic marketplace phenomena that both lead and force change? More than likely it will be blighted with troubles affecting survival and growth.Changes in society,the future impact of corrent decisions,the complexity of govermental regulations,and the increased pressures of competition can hinder survival unless managers make strategic decisions.Surely,strategy planning can assist management in anticipating unfavorable factors and changing enviroments in which organizations must survive and grow. 

In terms of managements decisions,strategy planning asks the questions : Whats is company's business? Is it the right business?Are product lines obsolate and/or markets eroding?If an organization does not know where it is going,it surely cannot get there.By focosing on the future, as well as on presents constraints and polices,managers become better equiped to direct resources toward a succesful achievemental of goals.By anticipating the future there is less temptation to focus on short run results while sacrificing long-run gains,and this is more likely to happen when performance is evaluated on the basic of adherence to to strategy planning involves long-run considerations,managers can uctualy capitalize on anticipated changes for the benift and growth of their organizations.As an example,consider the case of General Electric where "strategic business planning" is used to analyze various product lines systematically in an effort to decide which should be sold.Specifically, the concept involves a continuing in-depth analysis of the market share,growth prospect,profitability,and cash-generating power of each venture.In order to continue on a path of growth,General Electric's strategic planning techniques also put old-line businesses,such as toasters and turbines,under the same analysis as new ventures.In this way,management isolates product lines that are not particularly attractive,either now or in the future.Consequently,strategy planning allows GE to predict the profitability of product lines in as little as one years,as opposed to two or there years as head been normal under its previous planning process.
  While other example could be cited,two major advantages of strategy planning can be seen in the General Electric example.First,more effective plans can be developed,especially those requiring long periods of time to formulate.Managers become involved in shaping the destiny of their organizations and are not content to depend on fortuitous event.To this extent,important contingency plans are taken into account to meet the realities of extreme risks.As a continuous challenge that is never complete.strategy planning requires managers to look at their organizations in a different way from the way they did the previous years.
   Seconds,motivations and cohesiveness are enhanced since all individuals in the organization have an opportunity to know what is going on,where the organization is headed,and what is expected of them in achieving objectives.Of course,if a strategy is to have this value,it must be communicated and understood at all levels within the organizations.Planning of this type also requires exceptional leadership by top level management if given strategies are to be implemented successfully.