Importance of Strategic Management

Models for Strategic Management

Importance of Strategic Management

Strategic management has gained importance in recent years. During last century organizations focused on long-term planning. Long-term planning supposed that external and internal environment will remain stable for long period of time and thus they made plans for long duration. Today it is clear to the managers and entrepreneur’s that environment can change at any point of time and their plans should follow a strategy that includes contingency planning too.

What is a Strategy?

A strategy can be defined as a step-by-step plan to achieve a goal.

Strategic Management:

Strategic management is an ongoing process of formulating strategies for the organization that bring profit to the organization and create harmony between organization and its environment. It lists the strengths that the organization already possess for the achievement of its objectives; weaknesses that hinder in goals accomplishment; opportunities and markets that can be exploited in favor; and threats that are present in external and internal environment: this is in short called as SWOT analysis.

While making decisions about the strategy the organization analyzes what are the distinctive competencies the company already possesses. Distinctive competency can be a valuable asset for the company. Distinctive competencies make the process of strategy formulation much more directional and successful.

Importance of Strategic Management in Organizations:

A well-formulated strategy can bring various benefits to the organization in present as well as in future.

  1. Strategic management takes into account the future and anticipates for it.
  2. A strategy is made on rational and logical manner, thus its efficiency and its success are ensured.
  3. Strategic management reduces frustration because it has been planned in such a way that it follows a procedure.
  4. It brings growth in the organization because it seeks opportunities.
  5. With strategic management organizations can avoid helter & skelter and they can work directionally.
  6. Strategic management also adds to the reputation of the organization because of consistency that results from organizations success.
  7. Often companies draw to a close because of lack of proper strategy to run it. With strategic management companies can foresee the events in future and that’s why they can remain stable in the market.
  8. Strategic management looks at the threats present in the external environment and thus companies can either work to get rid of them or else neutralizes the threats in such a way that they become an opportunity for their success.
  9. Strategic management focuses on proactive approach which enables organization to grasp every opportunity that is available in the market.

 

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Comments 37 comments

seryhu profile image

seryhu 6 years ago from Canada

Excellent Hub, strategic management is a must to a company's success!!


gulnazahmad profile image

gulnazahmad 6 years ago from Pakistan Author

Thanks seryhu. Strategy is the key to success in every field and it is gaining popularity.


mohamed 5 years ago

that's usful info


gulnazahmad profile image

gulnazahmad 5 years ago from Pakistan Author

Mohammed thanks for the comment.


MOLYRUTHER 5 years ago

THUMBS UP :)


Mohammad imran 4 years ago

Thank you so much for help,


gulnazahmad profile image

gulnazahmad 4 years ago from Pakistan Author

Thanks Molyruther and Imran for the comments


anjum 4 years ago

thanks you for help


reshmapatnam 4 years ago

wonderful,sm is very much necessary for the org."s excellence according to the changing scenarios n preferences in the present context...........


kusekwasalu 4 years ago

you are marvelous. you gave us important information.


hussien 4 years ago

well illustrated, keep up the good work!


archana 4 years ago

thanks 4 the information


dankwa jephter 4 years ago

it will interest you to know what my professor said.That in football strategic management is called ways-and means.


Awio Benard 4 years ago

Thanx 4 da providing this info.


Kiran aalishan 4 years ago

there should be some examples related to this topic

so that it can be more understandable.


phindile 4 years ago

this will assist me in my assigmnet thank you,will definitely reference your work,hopefully you details reflect for refrence purposes.


Vivek 4 years ago

Thanks. This helped me to prepare a good answer for my coming exam


Innocent 4 years ago

Thanks, now i can use it in planning organization.


sadick kigaile 4 years ago

its so important and predictive information to the future of an organization,thank you


mathew k rutto 4 years ago

thank you for your advice on how we can make good planns for our organizations.


Irfan Ulla Khan 4 years ago

Superb.

Tomorrow is my exam and this study become very useful for me.

Thank you so much


paul 4 years ago

Ahm,.. Can I have a question pls..

What are the possible changes which may serve as challenges for creative managers in the future?


Angykyz 3 years ago

wonderful work which you are doing,next month will be writing my final exams,i know your help will surely make me succeed in my exams.Thanx and stay blessed.


misslong123 profile image

misslong123 3 years ago from Edmond, Oklahoma

You did a great job at illustrating the strategic models. I love the diagrams. You were very thorough in the topic. Can I refer my readers to you to increase your traffic? I will look forward to following your hubs. I hope you will be my follower and refer my hubs on yours as well. Keep up the great work! :) Michele


irene 3 years ago

this is very good please add more


mukta 3 years ago

it was the apt answer for my not of MBA. A VERY BIG THANKYOU


Nora 3 years ago

Thanks for this great work. I need more notes on the importance of strategic management.


bosco 3 years ago

fantastic


derick 2 years ago

thanks and God bless you


EMMANUEL AKORLI 2 years ago

YESSSSSS .........THIS IS EXACTLY WHAT I NEEDED.


ISAMAT SIMON PETER 2 years ago

Yes! i have got the answer for the question i had in mind.Thanks


EDMON 2 years ago

GOOD WORK


STEPHANIE NYANTA OKAE 17 months ago

THIS IS GREAT, EXACTLY WHAT AM LOOKING FOR


Manisha 15 months ago

Thanks for such a nyc & simple answer.. It helps me to make my notes effective


najjuko sumaya 14 months ago

u made my research easier


Abhishek Saxena 13 months ago

Very nice notes.


Sanju 4 months ago

Nice notes.

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