Strategy: In this process the organization determines the mission of the organization and prepares the long term objectives. In this process the management determines how the company will be able to accomplish the objectives in future. Long term planning requires strategy because of the great possibility of changes taking place during these times and thus requires strategic planning to handle the changes.

Planning: Planning is the process in which the organization tries to set short term objectives for the company and determines the way to achieve them in advance. For example, a company can achieve its yearly targets by making a short term marketing plan. This because the company can hike its target due increase in demand. Thus, going for a long term strategy will not be of use in this case.