What is the Difference Between Corporate Planning and Strategic Planning?

Corporate planning and strategic planning are both essential processes for businesses, but they serve different purposes and have distinct characteristics. Here are the main differences between the two:

1. Time: Corporate planning typically focuses on short to medium-term plans, while strategic planning deals with long-term plans.
2. Scope: Corporate planning deals with the internal aspects of the company, such as defining strategies, decision-making, and allocating resources. Strategic planning, on the other hand, deals with both internal and external environments, setting the overall direction of the company.
3. Objectives: Corporate planning sets parameters and objectives within the company, ensuring that resources are used efficiently and that there is minimal conflict between different departments or functions. Strategic planning sets the overall direction of the company, helping it face uncertainties in the future and determining how to exist in volatile business environments.
4. Response Nature: Corporate planning helps determine internal functions and issues within the company, while strategic planning tells how a company should exist in the broader business environment and emphasizes dealing with a volatile world.

In summary, corporate planning is primarily concerned with the internal workings of a company, while strategic planning focuses on the overall direction and positioning of the company in its external environment. Both types of planning are essential for a business to succeed, as they complement and support each other in achieving the organization's goals.

Comparative Table: Corporate Planning vs Strategic Planning

Here is a table comparing the differences between corporate planning and strategic planning:

In summary:

• Corporate Planning focuses on the internal aspects of a company, setting short to medium-term plans and objectives within the company itself.
• Strategic Planning deals with the overall business, including both internal and external environments, and sets long-term plans for the company's direction.

Corporate planning is more about execution, financials, and funding, while strategic planning focuses on tomorrow's customers and how they are going to be acquired and served.