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What is the importance of Strategic Management.

What is the importance of Strategic Management.

What is the importance of Strategic Management.

Chiranjibi Mar. 08, 2018

Strategic planning is important to an organization because it provides a sense of direction and outlines measurable goals. Strategic planning is a tool that is useful for guiding day-to-day decisions and also for evaluating progress and changing approaches when moving forward.

Other importances of Strategic management can be listed in the following points.

• It helps organizations to be more proactive rather than reactive in dealing with its future. It facilitates the organisations to work within the peculiarities of environment and remains adaptable with the turbulence or uncertain future. Because of this, organizations are able to control their own destiny in a better way.

• It provides better guidance to entire organization on the most sensitive point – what the organization is trying to do? Also, it provides framework for all major business decisions of an enterprise such a decision on businesses, products, markets, organization structures, etc.

• It facilitates to prepare the organization to face the future and act as a pioneer to various business opportunities. Organizations are able to identify the available opportunities and identify ways and means as to how they can be achieved.

• It helps organizations to avoid costly mistakes in product market choices or investments by serving as a corporate defence mechanism against mistakes and pitfalls.

• Over a period of time, strategic management helps organizations to evolve certain core competencies and competitive advantages that assist in the fight for survival and growth.