Strategic Management: A Critical Review of an Organization’s Strategic Plan


Strategic management is undeniably a pivotal factor in an organization’s triumph. Within the swiftly evolving realm of business, it has emerged as the bedrock upon which organizations aspire to secure enduring success. This multifaceted discipline revolves around the creation and execution of strategies, aimed at attaining long-term objectives and establishing a competitive advantage. In the subsequent sections of this blog, we will immerse ourselves in the realm of strategic management, unraveling its profound importance, and subjecting an organization’s strategic blueprint to a meticulous strategic management review.

What is Strategic Management?

Strategic management is the process of planning, executing, and monitoring an organization’s strategies to achieve its objectives and goals. It encompasses various activities, including environmental analysis, strategy formulation, strategy implementation, and performance evaluation.

Significance of Strategic Management

Strategic management is crucial for several reasons:

  1. Long-term Vision: It provides a clear long-term vision for the organization, helping it stay focused on its objectives.
  2. Competitive Advantage: Effective strategic management can give an organization a competitive advantage in the market.
  3. Resource Allocation: It ensures efficient allocation of resources, maximizing their utility.
  4. Adaptability: Strategic management enables organizations to adapt to changing market conditions.
  5. Performance Evaluation: It allows organizations to assess their performance and make necessary adjustments.

The Strategic Planning Process

Strategic planning is the heart of strategic management. It involves setting goals, developing strategies, and creating action plans. Let’s delve into the key steps in the strategic planning process:

1. Environmental Analysis

Before formulating strategies, organizations must analyze their internal and external environments. This includes identifying strengths, weaknesses, opportunities, and threats (SWOT analysis).

2. Strategy Formulation

Once the analysis is complete, organizations can formulate their strategies. These strategies should align with the organization’s mission, vision, and values.

3. Strategy Implementation

Effective implementation is crucial. It involves allocating resources, setting priorities, and creating a timeline for action.

4. Performance Evaluation

After implementation, organizations need to evaluate their performance. This step helps identify what is working and what needs improvement.

Critical Review of an Organization’s Strategic Plan

Now, let’s explore how to critically review an organization’s strategic plan. A critical review ensures that the plan is realistic, effective, and aligned with the organization’s goals.

strategic management review

1. Alignment with Mission and Vision

Check if the strategic plan aligns with the organization’s mission and vision. If there is a disconnect, it can lead to confusion and inefficiency.

2. Feasibility

Assess the feasibility of the plan. Are the goals achievable given the available resources and capabilities?

3. Environmental Analysis

Review the environmental analysis. Has the organization considered all relevant factors in its SWOT analysis?

4. Strategy Clarity

Evaluate the clarity of the strategies. Are they specific, measurable, achievable, relevant, and time-bound (SMART)?

5. Resource Allocation

Examine how resources are allocated. Are they distributed effectively to support the chosen strategies?

6. Risk Assessment

Identify potential risks and contingency plans. A robust strategic plan should consider various scenarios.

7. Stakeholder Involvement

Check if stakeholders have been consulted during the planning process. Their input can be invaluable.

8. Monitoring and Evaluation

Assess the mechanisms in place for monitoring and evaluating progress. Is there a feedback loop for continuous improvement?

Case Study: XYZ Inc. Strategic Plan Review

To illustrate the critical review process, let’s take a closer look at XYZ Inc.’s strategic plan.

Alignment with Mission and Vision

XYZ Inc.’s mission is to “provide sustainable energy solutions.” However, the strategic plan focuses heavily on expanding into non-related industries. This misalignment raises concerns.


The plan outlines ambitious goals without considering the organization’s limited budget. Achieving these goals may strain resources and lead to financial instability.

Environmental Analysis

The SWOT analysis in the plan is thorough, considering market trends, competitors, and internal capabilities. However, it lacks a clear assessment of potential regulatory changes that could affect the energy industry.

Strategy Clarity

While the plan contains specific objectives, they lack measurability. It’s unclear how success will be determined.

Resource Allocation

The plan allocates a significant portion of the budget to new ventures, neglecting core business areas. This allocation seems risky.

Risk Assessment

The plan briefly mentions potential risks but lacks detailed contingency plans. More comprehensive risk analysis is needed.

Stakeholder Involvement

Stakeholders were not actively involved in the planning process. Their perspectives could provide valuable insights.

Monitoring and Evaluation

The plan outlines regular progress reviews but lacks clear performance indicators. This makes it difficult to track success.

Recommendations for XYZ Inc.

Based on the critical review, here are some recommendations for XYZ Inc. to improve its strategic plan:

  1. Alignment: Realign the strategic plan with the organization’s mission and vision to ensure clarity and consistency.
  2. Feasibility: Set more realistic goals that consider the organization’s financial constraints.
  3. Environmental Analysis: Enhance the SWOT analysis by including a thorough assessment of potential regulatory changes.
  4. Strategy Clarity: Ensure that objectives are specific, measurable, achievable, relevant, and time-bound (SMART).
  5. Resource Allocation: Reconsider the allocation of resources to balance core business needs and expansion efforts.
  6. Risk Assessment: Develop comprehensive risk assessments and contingency plans to mitigate potential challenges.
  7. Stakeholder Involvement: Engage stakeholders in the planning process to gather diverse perspectives.
  8. Monitoring and Evaluation: Establish clear performance indicators to track progress and make data-driven decisions.


Strategic management is the compass that guides organizations toward their long-term goals. It involves careful planning, execution, and continuous evaluation. Critically reviewing an organization’s strategic plan is essential to ensure it remains effective and aligned with the organization’s mission and vision.

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