Types of Planning (5)
Strategic Planning and Operational Planning: On the basis of importance of contents, planning may be divided into strategic planning and operational planning.
(a) Strategic Planning: Strategic planning involves setting long-term direction of the
organization in which it wants to proceed in future. It is the process of deciding long-term objectives of the organization and defining where the organizational resources and efforts should be put to achieve organizational objectives. Strategic planning deals with strategic
issues like type of business to be undertaken, diversification of business into new lines,
type of products to be offered, and so on. This way, strategic planning encompasses all
the functional areas of business and is effected within the existing and long-term
framework of environmental factors. Strategic planning also involves rigorous analysis of
various environmental factors to relate the organization relates to its environment.