The basic framework of strategic planning process can be described as shown in the picture below. Stage One is a situational analysis and is the starting point of strategic planning. Stage Two is a process of goal setting for the organisation after it has finalised its vision and mission. Stage Three deals with the various strategic alternatives an organisation has. Stage Four and Five are the final process of selection, implementation and control of a suitable strategy.
Some Basic Concepts
A company's strategy consists of the combination of competitive moves and business approaches that managers employ to please customers, compete successfully, and achieve organisational objectives.
A company's business model deals with whether the revenue - cost - profit economies of its strategy demonstrate the viability of the enterprise as a whole.
The term strategic management refers to the managerial process of forming a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then over time initiating whatever corrective adjustments in the vision, objectives, strategy and execution are deemed appropriate.