A strategy determines the direction in which an organization needs to move to fulfil its mission. A strategic plan acts as a road map for carrying out the strategy and achieving long-term results.
Strategic planning is different from long-range planning.
Long-range planning builds on current goals and practices and proposes modifications for the future. Strategic planning, however, considers changes or anticipated changes in the environment that suggest more radical moves away from current practices. A farmer, when planning a cropping enterprise in the long-term, may forecast the eventual replacement of a combine with a newer model that has increased efficiency and capacity. However, when developing a strategic plan, long-term market trends, alternative opportunities, new technology and other factors are analyzed. This analysis might determine the emphasis on cash crops versus other farm enterprises, decisions on the future expansion of land, labour or capital, and other strategic decisions.