Set of actions and decisions made by management which lead to development of specific steps help the organization achieve its objectives.
Assumption here is that objectives make sense in broader sense of what is purpose of organization.
Must start with mission statement. External environment that determines the operating philosophies of the firm. The organizational culture. Purpose of SP - objective is to help in decision making. Involves outlining where you are going, steps to undertake, why you undertake those steps, who is responsible, when will they be accomplished and how will the steps be coordinated.