Advantages of Strategic Management

Advantages of Strategic Management

1. More profitable Operations: It has been observed that those businesses which have a structure strategic management process are more profitable and successful. Profitable operation is one of the fundamental reasons for every business in the world and strategic management helps in achieving that objective.

2. Explore Opportunities: Strategic management identifies the possible opportunities for the organization and thus management is in a better position to explore those opportunities. Similarly the organization can identify the possible threats with the help of strategic management process.

3. Improve Control: The business is being management at highest level which improves the overall control and creates a control environment within in the organization. In Strategic management roles and responsibilities are well defined that facilitate better control environment within organization.

4. Informed Decisions: Strategic management ensures the informed decision within the organization. Strategic management a lot of information is flowing to and from manager and thus manager uses those information in making medium term and short term decisions.

5. Improve understanding of business:  Strategic management requires a deep understand of the business and its environment. Business understanding is beneficial for the management in many ways and especially it facilitates the informed decision making.

6. Competition Information:  Strategic management enables management to study and understand the existing competition in the market. Better understanding of competition enables management to form appropriate counter strategy to tackle the competition. In highly competitive market strategic management has more roles because it is question of existence.

7. Problem identification: Strategic management identifies the expected problems which organization may face in the future. Timely identification of expected problem provide management a chance to adopt proactive approach to resolve the expected problems.

9. Allocation of Resources: with the help of strategic management the resource can be allocated in right place. Resource allocation is one of the important aspects of controlling costs. Strategic management we answer two important question what and how much resources are required

10. Improve Communication: Strategic management improves the communication within the organization. Lot of information is flowing upward and downward, this information is not only used for effective decision making but also improves the coordination level within organization.

11. Integration of entity: Strategic management set a direction for the organization and all individual and department try to achieve the common goals that are set by the key management. Therefore strategic management has inherent advantage of integration.

12. No ambiguity of Roles: Strategic management clearly defines the roles and responsibilities at different level and there is a structure hierarchy in the organization. Every individual in the organization has clarity of its role.

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