There is a contrast between strategic planning and strategic management as approaches to strategy formulation.
The rational planning model, originated by Ansoff starts from fixed objectives as a ‘top down cascade’ of defined step
Other names of Strategic Planning
Strategic planning is also called
Top down approach
Rational approach
Formal approach
Traditional approach
What Strategic Planning does:
Strategy involves setting goals first and then designing strategies to reach them
Some prediction of the future is possible
Outcomes of strategic choices can be predicted and controlled
Possible to separate the planning and selection of strategies from the implementation of strategies
Other names of Strategic Management
Strategic management is also called
Emergent approach
Bottom up approach
What Strategic Management does:
Builds management team with right strategic skills
Managers of divisions granted significant autonomy
Empowerment of mangers to develop and adapt strategies as circumstance change and opportunities and threats arise
