UGC NET Study Notes on Models of Strategic Planning || Commerce || Management

What are the Models of Strategic Planning? 

• Strategic planning refers to the process of controlling the organisation mechanism for guiding the implementation of the strategy. The underlying assumption of strategic planning is that the future can be anticipated, forecasted, managed and controlled. Strategic planning formulates a well thought out plan for properly allocating time, human capital and financial resources.
• According to Barry B W, Strategic planning is “the process of determining what an organisation intends to be in the future and how it will get there”.
• Strategic planning is the process by which an organisation clearly defines its VMOSA, i.e., Vision, Mission, Objectives, Strategies and Action Plans.

Types of Models of Strategic Planning

The nature of strategic planning from organisation to organisation. Each organisation has its own Strengths, Weaknesses, Opportunities and Threats. So it has to develop proper strategic planning that meets the requirements of the strategy formulation. Some of the important strategic planning models are:

1. Vision-Based Strategic Planning Model:

• It is also called Goal-based or basic strategic planning.
• In this model, the focus is on the future instead of the present. The strategists choose some time in the future and then suggest certain specific goals to be achieved by that time.
• A proper action plan is also combined with each goal. The action plan clarifies who is going to do what, and by when it should be completed. It is normally undertaken for a long period of time and is usually carried out by the top-level management.

The process of Vision-based strategic planning is:

• Establish a proper Vision and Mission Statement.
• Selecting goals, the organisation must attain.
• Formulate strategies to attain the goals.
• Identify the action plans to implement each strategy.
• Arrange the vision, mission, strategies and action plans into a Strategic Plan document.
• Implementing and monitoring the strategic plan and updating it when needed.

2. Issues Based Strategic Planning Model

• This model is usually followed by organisations that have very limited resources and face several current issues.
• This model begins by examining the issues faced by the organisation and formulating appropriate strategies to address those issues.

The major steps in an issue-based strategic planning model are:

• Identification of the major issues faced by the organisation.
• Critically examine each issue so that appropriate strategies can be developed.
• Formulate the strategies to resolve the issues.
• Compilation of issues and strategies into the strategic plan document.
• Implementation and modification of plan as needed.

3. Scenario-Based Strategic Planning Model

• Under this model, the strategists carefully examine the environment to find i=out the factors that may change in the future and influence the organisation.
• For each of the future changes identified, the strategists discuss three different future organisational scenarios such as Best scenario, Worst scenario and Reasonable scenario.
• The purpose of this planning model is to suggest what the organisation might do in each of the three scenarios.
• The strategists also analyse the various external changes that might affect the organisation and plan how to respond to them.

4. Real-Time Strategic Planning Model

• This model takes into account the ongoing nature of forming strategies.
• The assumption of this model is that it is not favourable for an organisation to depend upon one grand organisational strategy and continue with it for years. Instead, it should constantly monitor the environment to understand its position and plan for the future.
• The objective of this model is to increase the capacity of an organisation to develop a strategy on a real-time or ongoing basis.

5. Organic Strategic Planning Model

• This strategic planning model focuses on identifying the best practices, processes and methodologies in an organisation.
• The model tries to evolve strategies to retain and expand the best things in the organisation.
• This model is of the assumption that the best situations in the past and present contain the seeds needed for future growth, expansion and success.

6. Alignment Strategic Planning Model

• The aim of this model is to ensure a strong alignment between the organisation’s mission and its resources for its effective functioning. The basic steps of this model are
  • The planning team prepares a framework of the organisation’s mission, programmes, resources and needed support.
  • Examine what is working well and what needs adjustment.
  • A detailed analysis is conducted to finalise the adjustments to be made.
  • Incorporate the adjustments as strategies in the strategic plan.

7. Interblended Strategic Planning Model

• It is a combination of all the available strategic planning models.
• This model is of the assumption that none of the strategic planning models can be fully effective in complex strategic planning situations. In such a case, a blend of different strategic planning models is needed to formulate the best strategies.
• This model is also known as multi-criteria based strategic planning.

Best Books For UGC NET Commerce

Below are the best Books for UGC NET Commerce. Candidates can refer to these books for UGC NET Preparations. 

Topic Name	Relevant Book
Micro Economics	Graduation Textbook Micro Economics by Dr Deepshree
Finance	Graduation level Textbook and Internet/ Wikipedia
Financial Management	Graduation level Textbook by I.M. Pandey
Business Statistics	Post-Graduation level Textbook “Business Statistics” by Dr J.K. Thakur
Research Methods	Graduation level Textbook by C.R. Kothari

UGC NET Commerce Preparation Tips

1. First of all, the appearing candidate should have a thorough knowledge of the UGC NET Commerce Syllabus. 
2. After being aware of the syllabus, the next thing you need is the right study material for the preparations to begin. Candidates can refer to the below table for UGC NET Commerce Books.
3. Another useful preparation tip is to solve UGC NET Previous Year Papers. Solve as much as you can as they will prepare you for the type of questions in the exam. 
4. It is also very important to keep giving UGC NET Mock test. These will prepare you for the actual exam environment and you can practise new questions through them. 

Also Read:

Best Books for UGC NET Commerce Unit-Wise	Read here
UGC NET Study Notes on Teaching Aptitude	Read here
Importance of UGC NET 2022 Exam Paper 1	Read Here
UGC NET Study Notes on Techniques of Organisational Development	Read here

Thanks.

Team, 

BYJU’S Exam Prep