Planning and strategy are two very common terms that are often used interchangeably. However, there is an obvious difference between these terms. Both of them have their own objectives and strengths which are not interchangeable. So, in this article, we will help you to understand the complete differences between planning and strategy with the help of the following conceptual topics.
Definition Of Planning
The term planning refers to an organized process that actually involves thinking in advance about the actions that are going to take place in the future. It is one of the most important functions of management that help a company to achieve its business goals and objectives. It is the first step that involves thinking as to what to do, how to do it, and when to do it. Planning helps an organization to exercise control over the action, i.e. whether everything is going as per plan or not.
Some of the essential points of planning are as follows.
- Planning helps business management to enhance future production.
- It bestows a good direction to the employees’ work.
- Reduces the risk and unpredictability in the future.
- It assists a business in choosing the best action to avoid overlapping of activities and get rid of unfruitful work.
- Planning assists a firm to recognize future possibilities and threats.
Types Of Planning
Here we have included some of the different types of planning that are given as follows.
- Strategic Planning- Strategic planning generally helps you to achieve long-term goals and objectives. It is always planned by top-level management.
- Tactical Planning- It implies short-term planning that helps a business or any other organization to achieve small goals. Low-level management is responsible for this kind of planning.
- Contingency Planning- It can be used as a backup plan if the primary plan does not work as predicted.
- Operational Plan- This type of planning tells organizations how work should take place to achieve their respective goals and objectives.
Definition Of Strategy
On the other hand, strategy refers to a focused and broad plan premeditated to achieve certain goals and objectives of an organization. It contains competitive moves and actions taken by the top-level management in order to achieve the objectives successfully. Also, strategies are so flexible and dynamic in nature that anyone can make changes to them as per requirements. Strategy always comes before planning.
Practical experiences generally count more than having theoretical knowledge while creating strategies. This means they are genuine and action-oriented activities. The main objective of business strategies is to sustain its goods and services in the market and retain the business stable in the market. A strategy requires a thorough and deep analysis of the managers on any action, outcome, competitor’s reaction, implementation timing, etc.
Planning Vs Strategy(Comparison Table)
| Basis For Difference | Planning | Strategy |
| Definition | The first step of deciding and thinking about what, how, and when to do a specific work. | It refers to the best plan selected for achieving certain goals and objectives. |
| Related To | It is related to thorough thinking | It is related to active actions |
| Basis | Planning involves thinking only | Based on practical consideration |
| Term | Can either be long-term or short-term depending on the circumstances | Long-term |
| Sequence | Second | First |
| Nature | It is preventive in nature | It is competitive in nature |
Key Differences Between Planning And Strategy
Since we are comparing planning vs strategy, let’s have a look at some of the key differences between them.
- The term planning refers to an organized process that actually involves thinking in advance about the actions that are going to take place in the future. On the other hand, strategy refers to a focused and broad plan premeditated to achieve certain goals and objectives of an organization.
- Planning may be short-term or long-term depending on the circumstances. On the other hand, strategy is a comparatively long-term activity and is more complex than planning.
- Strategy comes first then planning.
- While planning is a part of managerial activities, strategy is part of the decision-making process.
- Strategy is all about selecting the best plan and putting that plan into action. On the other hand, planning is drafting a plan solely.
Conclusion
So, with all the above explanations and discussions, we can simply conclude that planning and strategy play a very significant and crucial role in every business environment. A plan is nothing but a map to achieve certain business tasks. On the other hand, a strategy is a transit or a moving action through which a firm attains its goals and objectives. The strategy actively involves analyzing the problem, and logical situations, identifying the best plan, and putting that plan into action. While planning is a part of managerial activities, strategy is part of the decision-making process.
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