Knowledge based strategic planning system

An industrial organisation considered as a system interacts with other systems in the course of its functioning, for greater effectiveness. It has various subsystems such as production, marketing, management and finance, interacting synergistically. Some systems in the ambient environment are government, competing and collaborating organisations, markets and society. The environment provides certain opportunities and poses some threats. The efficacy of the organisation depends on how well it overcomes its weaknesses and harnesses its strengths in counteracting threats and exploiting opportunities. Objectives set without adequate analysis of internal and external environmental conditions are difficult to achieve. The design of a strategic planning system, therefore, includes the function of environmental scanning. Management faces many challenges in its quest for effectiveness and needs to evolve a strategic master plan, conceived of a multitude of complementary actions. The authors describe a knowledge based system that helps set strategic objectives after giving due weightage to both external and internal factors