Strategic Planning and Control
The planning cycle and control loop
Strategic planning moves through mission and objectives, environmental appraisal, option generation, evaluation and choice, implementation, and review. Candidates must distinguish strategic, tactical and operational levels of control and recognise that control is a feedback loop, not a one-off plan. Understand the rational planning model and its critics (emergent strategy, logical incrementalism) - questions often ask you to contrast deliberate and emergent approaches.
Appraisal tools
Know PESTEL, Porter's Five Forces, value chain, SWOT, and Ansoff's matrix. The trap is using a tool mechanically without linking it to the specific scenario. Another common trap is confusing core competences (resources and capabilities that are valuable, rare, hard to imitate) with ordinary strengths.
Risk and control
Understand the risk management process (identify, assess, respond, monitor), the difference between strategic and operational risk, and the role of the board versus management in setting risk appetite. Distinguish feedback (comparing actual to plan) from feed-forward (adjusting plans before outcomes occur).
Worked rule of thumb
When asked to evaluate a strategic option, apply suitability, acceptability, feasibility (SAF). Suitability asks whether the option fits the environment and mission; acceptability asks about risk, return and stakeholder reaction; feasibility asks whether resources and competences exist. Structure answers around SAF to avoid a descriptive list.
Exam traps
- Confusing objectives (ends) with strategies (means).
- Treating SWOT as analysis when it is only a summary - the marks come from the actions that follow.
- Ignoring stakeholder influence and the political dimension of strategy.