A comprehensive strategic action plan should ideally contain the company’s vision and mission, strategic objectives, financial objectives, business strategy (i.e., enterprise strategy), functional strategies for various organizational functions, and possible actions to improve the predominancy of the company.
| Company Vision Company Mission Company Objectives: – Strategic Performance Objectives – Long-Term objectives | Functional Strategies – Marketing – Production – Human Resources – Finance – Research & Development – Other functional strategies |
| Short-Term Objectives Financial Performance Objectives: – Long-Term objectives – Short-Term Objectives | Recommended Actions to Improve Performance: – Long-Term Actions – Immediate Actions |
It is a suggested format for a strategic action plan for a single-business enterprise.
It may be noted that strategic action plans for a diversified company having-several lines of business are much more complicated.
However, diversified companies must also develop strategic action plans under their corporate umbrella for each Strategic Business Unit.
Thus far, we have discussed strategy formulation in the context of a single-business enterprise. Each business firm/unit can choose a cost leadership strategy, differentiation strategy, focus strategy, best cost leadership strategy, or combination.
Finally, the firm needs to tailor its chosen strategy to the situations prevailing in the firm’s industry and the situations of the firm itself.
Many firms/companies have moved from single-business to multiple-businesses. Strategy formulation in a multi-business company is much more complicated than in a singlebusiness firm. The multi-business firms are known as ‘diversified companies’.