A Critical Review of Theoretical Aspects of Strategic Planning and Firm Performance

Strategic planning is critical in the management of an organisation due to the essential role it plays in leading the organisation into the identification of strategic plan to be used by the organisation through focusing the issues within the organisation, evaluating their effects while considering the organisational operations and developing alternative measures and tactics so as to ensure that the organisation earns competitive advantage as discussed in the paper. The dependence of the strategic planning and the performance of the firm is also notable with all the goals in the strategic planning, leading to influence the performance of the organisation. The paper uses elements of the strategic plan including the mission and the vision, the core values, the strengths, the weaknesses, the opportunities and the threats as well as the strategies, with an inclusion of the objectives and the operation tactics to review the strategic planning and the organisational performance. Qualitative methods are used to collect and analyse the secondary data from review past studies and reports. The study finds strategic planning significantly depending on the analysed elements of the strategic planning in achieving the outcome. The elements also play a critical role in aligning the organisation towards working on a specific organisational strategic planning process to ensure all stakeholders are focused on a common goal that determines the performance of the firm.