ALFRED P SLOAN SCHOOL OF MANAGEMENT CAMBRIDGE MASS
This paper presents a conceptual framework that organizes the principal elements of the strategic planning process in business firms, and that facilitates the conduction of this process in a coordinated and effective manner. The essence of strategic planning is to provide long term directives to the overall corporation and to each one of its business components. Broadly speaking, strategic planning is aimed at maintaining a viable interaction between the organization and its environment, by elucidating the strengths and weaknesses of the firm in the underlying setting of environmental opportunities and threats. The strategic planning effort is centered in the generation of a feasible set of options to take advantage of potentially favorable situations or deactivate potentially explosive ones. The final objective of this effort is to select a course of action that insures the long run growth and profitability of the firm.