Strategic and Capacity Planning in Business

Subject: Organizational Planning
Pages: 1
Words: 269
Reading time:
2 min
Study level: College

Strategic planning and its benefits

Strategic planning allows a company’s manager to integrate evaluation into an organization’s culture to comply with the organizational development agenda (Cheung-Judge & Holbeche, 2011). There should be specific approaches and frameworks to understand the essence of organizational learning and development. Therefore, there are Five reasons for introducing a strategic plan:

  1. A strategic plan provides a company with the algorithm of activities and directions to achieve the established goals.
  2. Strategic planning explains how customer value can be delivered.
  3. A good strategic plan entails narrowing the organization’s vision, mission, and objectives.
  4. Efficient strategic management also implies the presence of metrics evaluating performance and outcomes of objectives implementation.
  5. Strategic management is crucial for entering the global environment.

There are also five benefits of implementing an efficient strategic plan:

  1. The strategic planning process provides a basis for progress, as well as a mechanism for implementing changes.
  2. It also ensures efficient use of the organization’s resources through the distribution of key responsibilities and priorities.
  3. A strategic plan allows managers to better communicate objectives and goals.
  4. Strategic planning promotes the concept of ownership within an organization.
  5. Finally, a strategic program increases productivity and performance.

Capacity planning and its stages

Capacity planning involves the stages that are implemented to organize the budget properly. The process is composed of three major steps: functional and business planning, customer behavior analysis and IT resources distribution (Menasce & Almeida, 2000). The first step is connected with business development; the second one introduces the evolution of organizational structure with the shifts in consumer behavior, and the third step is focused on the measurement of IT infrastructure.


Cheung-Judge, M.-Y., & Holbeche, L. (2011). Organizational Development: A Practitioner’s Guide for OD and HR. US: Kogan Page Publishers.

Menasce, D. A., & Almeida, V. A. F. (2000). Scaling for E-Business: Technologies, Models, Performance, and Capacity Planning. US: Prentice Hall Professional.