Question

how is alignment created in a strategic plan?

Answer 1

A Strategic Plan is made to decide on the future course of an organization and the overall direction that the business should evolve in order to grow sustainably and profitably. It contains details regarding the allocation of resources, operational tactics and also the competitive positioning that the organization will undertake in order to succeed.

In order to succeed in all of these the overall strategy should be aligned with the basic principles of product or service that the company would be offering. That is if the company is a cost leader, then its strategic plan should ensure that the resource allocation and operational tactics emphasize operational efficiency and thus align with the strategy of being a cost leader.

For a premium player, the resource allocation has to be in a way that product innovation happens continuously and thus ensuring a premium offering to the customers which enables them to charge accordingly.

So alignment in a Strategic Plan means ensuring the resources are properly allocated as per the competitive positioning of the company.