Business Management: The Importance Of Strategic Management

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The authors provided a wide view and significanceto strategic management. Strategic Management is about identification and description of the strategies that managers or supervisors implement to achieve better performance andcompetitive advantages for their organization. An organization is said to have competitive advantage if its profitability is higher than the average profitability of other companies in its industry.

Strategic management can also be defined as a multitude of decisions and acts which a manager commences which adoptsa strategy based on the result of the business’s performance. The manager must have a system offamiliarity and analysis of the general and competitive organizational environment so as to take right judgments.
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It is nothing but the art of handling employees in a manner which make the most of the ability of achieving trade’sgeneral objectives. Personnel become more dedicated, more responsible and more contented as they can co-relate themselves very well with each organizational assignment. They can understand the response of environmental vicissitudes on the organization and the possiblereaction of the organization with the help of strategic management. Thus the employees can examine the bearing of such changes on their own job and can efficiently face the changes. The managers and employees must do suitable things in proper manner and at the same time, they need to be both effective as well as efficient for the overall welfare of the organization.

One of the principal role of strategic management is to include various functional areas of the organization entirely, as well as, to ensure these functional areas resemble and get together well. Another role of strategic management is to keep a continuous eye on the organizational goals and objectives so it will monitor moregrowths and
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For instance, newer products, newer markets, and newer ventures into business lines are only likely if businesses get concerned in strategic planning. Strategic management allows firms to take a fair view of the activities being done by it and does a cost-benefit study as to whether the firm is cost-effective or not. Just to make a difference, by this, It does not mean the financial benefits only but also the computation of productivity that has to do with evaluating whether the business is strategically aligned to its objectives, primacies, and priorities. The important point to be noted is that strategic management permits a firm to make known for itself to its market and consumers and make sure that it is actualizing the right

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