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Advantages of Strategic Mgt

In: Business and Management

Submitted By NajamFasih
Words 835
Pages 4
-:Strategic Management:-
“Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.”
Financial Benefits: 1. Improvement in sales. 2. Improvement in profitability. 3. Improvement in productivity.

Non-Financial Benefits: 1. Improved understanding of competitors strategies. 2. Enhanced awareness of threats. 3. Reduced resistance to change. 4. Enhanced problem-prevention capabilities.

The Main Advantages of Strategic Management

1. Discharges Board Responsibility The first reason that most organizations state for having a strategic management process is that it discharges the responsibility of the Board of Directors.

2. Forces An Objective Assessment Strategic management provides a discipline that enables the board and senior management to actually take a step back from the day-to-day business to think about the future of the organization. Without this discipline, the organization can become solely consumed with working through the next issue or problem without consideration of the larger picture.

3. Provides a Framework For Decision-Making Strategy provides a framework within which all staff can make day-to-day operational decisions and understand that those decisions are all moving the organization in a single direction. It is not possible (nor realistic or…...

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