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Benefits of Strategic Management

Strategic management provides companies with competitive advantages, helps them achieve goals through clear implementation processes, and leads to sustainable growth through improved organizational performance. It requires communication across an organization to work towards goals in a cohesive manner and keeps managers aware of industry trends. Strategic management involves setting objectives, analyzing competitors, reviewing internal structure, evaluating strategies, and ensuring company-wide implementation through prescriptive or descriptive methods.

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Zeah Viendell Cruzat
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2K views

Benefits of Strategic Management

Strategic management provides companies with competitive advantages, helps them achieve goals through clear implementation processes, and leads to sustainable growth through improved organizational performance. It requires communication across an organization to work towards goals in a cohesive manner and keeps managers aware of industry trends. Strategic management involves setting objectives, analyzing competitors, reviewing internal structure, evaluating strategies, and ensuring company-wide implementation through prescriptive or descriptive methods.

Uploaded by

Zeah Viendell Cruzat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Benefits of strategic management

Achieving organizational goals takes planning and patience. Strategic management can help
companies reach their goals. Strategic management ensures the steps necessary to reach a
business goal are implemented company-wide.

Strategic management offers many benefits to companies that use it, including:

 Competitive advantage: Strategic management gives businesses an advantage over competitors


because its proactive nature means your company will always be aware of the changing market.

 Achieving goals: Strategic management helps keep goals achievable by using a clear and
dynamic process for formulating steps and implementation.

 Sustainable growth: Strategic management has been shown to lead to more efficient


organizational performance, which leads to manageable growth.

 Cohesive organization: Strategic management necessitates communication and goal


implementation company-wide. An organization that is working in unison towards a goal is more
likely to achieve that goal.

 Increased managerial awareness: Strategic management means looking toward the


company's future. If managers do this consistently, they will be more aware of industry
trends and challenges. By implementing strategic planning and thinking, they will be
better prepared to face future challenges.

How does strategic management work?


Strategic management requires setting objectives for the company, analyzing the actions of
competitors, reviewing the organization's internal structure, evaluating current strategies and
confirming that strategies are implemented company-wide.

Strategic management can be either prescriptive or descriptive. Prescriptive strategic


management means developing strategies in advance of an organizational
issue. Descriptive strategic management means putting strategies into practice when needed.
Both methods of strategic management employ management theory and practices.

While upper management is responsible for implementing strategies, ideas, goals or


organizational challenges can come from any member of the company. Many companies employ
strategists whose job it is to think and plan strategically to improve company function.
Types of strategic management

Strategic management as a concept can be approached in a variety of ways. Below we will


outline popular types of strategic management:

SWOT analysis

SWOT stands for strengths, weaknesses, opportunities and threats. This analysis allows you to
investigate internal and external factors. Internal factors include positive (strengths) or negative
(weaknesses) factors that exist within your organization and are able to be changed or affected in
some way, while external factors include positive (opportunities) or negative (threats) factors
that exist outside of the subject you are evaluating and cannot necessarily be changed or affected
by you or your organization in any way.

Read more: SWOT Analysis Guide (With Examples)

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