Planning is determining and drafting goals for the future, while strategy is associated with drafting a long-term plan to achieve a goal. Planning involves thinking, while strategy involves action-taking.
Key Takeaways
- The strategy outlines a long-term vision, while a plan provides specific steps.
- The strategy defines an organization’s direction, whereas a plan details resources and timelines.
- Strategy requires flexibility and adaptation, while a plan is more rigid and structured.
Strategy vs Plan
A strategy is a high-level approach that lists the goals, objectives, and ways of achieving them. It is used to guide decision-making and resource allocation. A plan is a detailed, step-by-step document that lists the specific actions, timelines, and resources required to achieve a particular goal.
Strategy is carefully choosing the best plan to accomplish a certain task or goal. The strategy involves practical thinking, and it is a component of planning.
Planning is a part of management. It is the first step in the functions of management. Planning is concerned with the future. Planning involves assumptions.
Comparison Table
| Parameters of Comparison | Strategy | Plan |
|---|---|---|
| Meaning | Strategy is a broad plan that involves action. | The plan is related to thinking. It involves a plan which will be used in the future. |
| Time period | Strategy is a long-term process. | The time period depends on the goal which is to be achieved. |
| Requirement | Analyzing, practical thinking, evaluating the pros and cons. | Thorough thinking of what to do next. |
| Basis | The strategy involves action and thinking. | Planning involves thinking only. |
| Process | Strategy is the first step. | Planning is followed by strategy. |
What is Strategy?
Strategy is nothing but a broad plan that will be converted into actions to achieve a certain objective. Strategy can be used anywhere.
Strategy is often associated with and used for a long-term goal. In terms of succession, strategy is the first step which is then followed by planning.
A strategy is often created and used by the business organization to beat or eliminate its competitors. In a business environment, strategy is divided into four types.
What is Plan?
It is the second step after strategy, meaning a strategy is prepared by coordinating all the plans to achieve a certain goal. Planning involves thinking as to what to do next and how to do it.
They are operational planning, strategic planning, tactical planning, and contingency planning. Strategic planning is an important plan that will be put into action to achieve a certain goal or objective.
On the other hand, contingency planning is ready to use plan (a backup plan), which is used if the primary plan does not come out well as predicted.
Main Differences Between Strategy and Plan
- Strategy is the first step which is followed by planning.
- Strategy is choosing the best plan and putting the plan into action, while planning is drafting the plan alone.
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
