In an increasingly competitive environment, business planning is increasingly important. In this context, an analysis of the sector and an internal analysis of the company are carried out, and strategic objectives and strategies are defined, allowing the company to grow profitably and sustainably over time. This process includes the following:
- Analysis of the dynamics of the sector and of the competition.
- Definition of mission, vision and values.
- SWOT analysis (strengths, weaknesses, opportunities, threats).
- Evaluation of growth opportunities.
- Definition of growth plan.
- Definition of value proposition.
- Evaluation of capacities and competitive advantages.
- Definition of strategic objectives, strategies and goals.
- Design of an action plan and Balanced Scorecard.
As a result, a strategic plan is obtained that allows for systematic and sustainable growth.
As for the public sector, strategic planning is conducted using the same techniques, though these are adapted to public institutions’ requirements on several levels. Each sector associated with a ministry formulates a Multi-Year Sector Strategic Plan. Also, subnational governments formulate development plans for their respective territories. Furthermore, national or special plans are formulated to render certain policies viable. The Institutional Strategic Plan (PEI, for its acronym in Spanish) is a management tool that guides the development of public institutions in the medium and short term. On the other hand, Institutional Operational Plans (POI, for its acronym in Spanish) propose short-term activities, specific tasks, and goals of each area within the institution.