Strategic planning involves decision management to determine the company's direction, goods, and services to bring competitive advantage. Strategic planning involves two key elements of strategy formulation and implementation. The strategic implementation consists of operating and managing the budget, collecting and analyzing data, and improving existing plans (Abraham, 2012). On the other hand, strategy formulation focuses on internal and external analysis. Operational planning involves the preparation of detailed organizational plans for the coming fiscal year. Operational planning involves projects, plans, and activities that the company is doing and ones required to do in the future (Abraham, 2012). Operational planning support s and coordinates all the activities of strategic planning.
The significant difference between strategic planning and operational planning is on the level of management. Strategic planning is performed by top management and is a blanket for the entire organization, while operational planning is performed at all management levels, but the activities differ (Abraham, 2012). Another difference is that operational planning seeks to support strategic planning activities. Strategic planning focuses on achieving long-term objectives, while operational planning concentrates on achieving short-term goals, which are set mainly yearly.
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The typical participants in strategic planning are mainly upper-level management. In operational planning, the major participants are middle-level management.
Operational planning offers a range of benefits to the organization, contributing to overall organizational success. Operational planning gives every department a clear idea of where the goal is set and how to achieve its expected benefits. Through a clear understanding and goal setting, the organization achieves a high financial level for the entire year when they follow the set plan.
Walmart is one of the companies that has successfully implemented strategic planning and operational planning. Since its formation, Walmart high focus on concentrating on the lowest prices and "cheap-chic styles." Walmart has nailed operational excellence through their in –touch fashion lines and great customer intimacy. Walmart keeps improving its strategic and operational plans to win customers through its timely and cost-effective supply chain (Leinwand & Mainardi, 2010). Differently, Kmart is has failed terribly for failure to use its operational and strategic planning effectively. Kmart's lack of focus led to the closure of over 10% of its stores in 2012, and currently, only 700 out of the initial 2000 outlets are in operation. Loss of focus in Kmart is reflected in its vision statement, "To thrive as a mass merchandising company that offers customers quality products through a portfolio of exclusive brands and labels."
References
Abraham, S. C. (Ed.). (2012). Strategic Management for Organizations . Bridgepoint Education.
Leinwand, P., & Mainardi, C. (2010). Why can't Kmart be successful while target and Walmart thrive. Harvard Business Review .
