Strategic planning is the process of developing a mission and long-range objectives and determining in advance how they will be accomplished. Operational planning is the process of setting short-range objectives and determining in advance how they will be accomplished. The difference between strategic planning and operational planning are primarily the time frame and management level involved. Long-term generally means that it will take longer than one year to achieve the objective. Operational plans have short-term objectives that will be met in one year or less.
The steps in the strategic planning process are (1) developing the mission, (2) analyzing the environment, (3) setting objectives, (4) developing strategies, and (5) implementing and controlling strategies.
A strategy is a plan for pursuing a mission and achieving objectives. The three strategic levels are corporate, business, and functional. The corporate-level strategy is the plan for managing multiple lines of businesses. The business-level strategy is the plan for managing one line of business. The functional-level strategy is the plan for managing one area of the business.
References:
1. Lussier, R. N. (2006). Management Fundamentals, (3rd ed.). Thomson.
2. Robbins, S.P. & Coulter, M. (2005). Management, (8th ed.). Pearson-Prentice Hall-New Jersey.
3. Schermerhorn, J. R. (2005). Management, (8th ed.). John Wiley & Sons, Inc.
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