Why is strategy so important?  There are two main reasons; firstly, a compelling need exists for managers to proactively shape how a company’s business will be conducted and secondly, a strategy-focused company is more likely to be a strong bottom-line performer than one that views strategy as secondary. (Thompson et al,2007:15)

To be able to develop a comprehensive strategic plan, it is necessary to review the key aspects of planning as well as the elements of a strategic plan.  What makes a good or even a winning strategy?   A winning strategy must fit the company’s external and internal situation, build a sustainable competitive advantage and improve the company’s performance (Thompson et al., 2007:13)

Just like individuals, organisations need constantly moving reference points to keep pace with the changing business environment (Lindgren & Bandhold, 2003:124).  This is done to increase shareholder value.  Shareholders expect a return on their investment and one of the key principles according to Alfred Rappaport, is to make strategic decisions that maximise the expected value, even at the expense of lowering earnings in the near-term (Rappaport, 2006:68)

 Hellriegel, Jackson and Slocum (2002:28) maintain that there are only 3 basic steps to a good plan, by determining;

1. Which goal should be pursued?
2. how should the goal be attained?, and
3. how should resources be allocated

This forms the basis of the “what”, “how” and “with what”.