Introduction
Strategic planning is aimed at guiding the organization in achieving its goals and enhancing its performance. This activity is the critical element of organization’s improvement and development which further determines its long-term success. Strategic planning guides all the activities and procedures of the organization in order for it to grow and move towards its goals. Two important concepts of strategic planning are mission statement and SWOT analysis. Those two elements allow companies to determine their goals and further analyse the process of its achievement. In particular, the mission statement contains the outline of the overall purpose of the organization that determines all its activities. SWOT analysis is used in strategic planning to monitor internal and external environments in order to develop the most effective practices. Thus, both concepts play an integral role in strategic planning and refer to different stages of the development of the organization.
Mission Statement
The mission statement is an essential element of strategic planning for organizations. These concepts help the companies to communicate their beliefs, values and goals (Fitzsimmons et al., 2022). According to Tarifi (2021) the mission statement underlines the priority of organization’s activities as the basis for competitive advantage. In particular, the mission statement contains the description of current products or services that the organization offers (Fitzsimmons et al., 2022). This element also defines certain strengths of the organization and opportunities it has. The main purpose of the mission statement is to communicate the value of the company and how it is different from competitors. Through this element companies can position themselves defining their unique characteristics.
The mission statement is an important concept within strategic planning. First of all, it helps the organization to define its overall purpose and goal (Fitzsimmons et al., 2022). It is essential as it serves “to lead the firm in the desired strategic position by guiding the organisation into the future by expressing about the future as well as the organisational future” (Tarifi, 2021, p. 1984). Thus, the mission statement defines the strategy of the company in broader terms. It helps managers and planners to narrow the focus of the development of the company, setting clear goals for the business. The mission statement is the core element of strategic planning activities as it provides the basis for shaping the future of the company. Tarifi (2021) outlines that mission statement plays an essential role in promoting organizational goals. This element of strategic planning guides both short-term and long-term activities of the company. It sets clear expectations on what the organization should do in order to achieve its aims.
SWOT Analysis
SWOT analysis is one of the integral concepts of strategic planning. It presents tools that managers can utilize to determine strengths, weaknesses, opportunities and threats of the organization. Siddiqui (2021) underlines that SWOT analysis allows organizations to identify both internal and external environments for decision-making. Strengths describe internal factors that facilitate goals achievement for the organization, while weaknesses refer to factors that hinder it (Benzaghta et al., 2021). Opportunities define elements of the environment that offer potential areas of growth for the organization (Benzaghta et al., 2021). Threats are aspects of the external environment that prevent the organization from reaching its goals (Benzaghta et al., 2021). Taken together, these dimensions allow an organization to analyze its own capabilities by identifying the company’s internal resources. Additionally, SWOT analysis helps companies determine their position in the market relative to competitors and identify possible areas for development.
SWOT analysis is an integral concept of strategic planning as it is used by the organizations in decision-making process. Benzaghta et al. (2021) note that this tool is the most valuable source of information for strategic planning as it can identify areas for improvement and possible problematic spots. It is also important that SWOT analysis can be applied by the organization to detect existing obstacles and develop strategies to overcome them. Without utilizing this tool, strategic planning would be challenging or even impossible. SIgnificantly, SWOT analysis can be used in various contexts and different industries which makes it a universal concept in strategic planning. Companies can conduct such analysis constantly to identify problems and opportunities, as well as to monitor their success in achieving the goals set.
Conclusion
The mission statement helps companies to communicate their purpose and goal. SWOT analysis is used by organizations to identify strong and weak points of both internal and external environments. Those two concepts are essential for strategic planning as they set the framework of effective development of companies. The mission statement allows the organization to define its goals in order to guide all the activities. SWOT analysis is applied to evaluate current practices of the organization and determine its position in relation to competitors. Thus, both concepts are critical to strategic planning at various stages.
References
Benzaghta, M. A., Elwalda, A., & Mousa., M. M. (2021). SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), 55-73. Web.
Fitzsimmons, A. B., Qin, Y. S., & Heffron, E. R. (2022). Purpose vs mission vs vision: Persuasive appeals and components in corporate statements. Journal of Communication Management, 26(2), 207-219. Web.
Siddiqui, A. (2021). SWOT analysis (or SWOT Matrix) tool as a strategic planning and management technique in the health care industry and its advantages. Biomedical Journal of Scientific & Technical Research, 40(2), 32035-32042. Web.
Tarifi, N. (2021). A critical review of theoretical aspects of strategic planning and firm performance. Open Journal of Business and Management, 9, 1980-1996. Web.