Corporate planning is the process by which leaders set the course to achieve objectives. It includes budgeting, allocation of resources, development of strategies and delegation of responsibilities to various departments. Company executives typically go through formal strategic planning annually. Leaders use common tools to assess how the corporation can best fulfill its mission by taking advantage of opportunities and optimizing resource efficiency.
A central tool used in corporate planning is the SWOT analysis. SWOT is an acronym for strengths, weaknesses, opportunities and threats. By assessing current strengths and weaknesses, leaders recognize what to leverage in preparation for seizing opportunities. An elite service provider would emphasize service improvements in planning, for instance. Recognition of threats helps identify strategies and tactics that are doomed to fail.