Potential Benefits and Limitations of Strategic Management Essay

2709 Words Nov 28th, 2010 11 Pages
Introduction
Business always is subject to factors that affect the firm’s function as a whole may it be profit or non-profit oriented. These factors are the ones attributed for the both success and failure of a business. For the profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit. In this manner, the management of that particular organisation should be guided by strategic management principle to be able to attain its business goal. As mentioned, “Strategic management can contribute significantly to organisational performance; however, its practice can have limitations.”
First and foremost, the purpose of this paper is to
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As mentioned, the whole concept of strategic management encompasses potential benefits and limitations.
Historically, the principal benefit of strategic management has been to help organisation formulate better strategies through the uses of a more systematic, logical and rational approach to strategic choice. One of the potential benefits of strategic management is it make sure that the organisation only follows one direction or path and that is towards the achievement of its business mission, objectives and success. Through the use of strategic planning as part of the strategic management concept, the company will be able to determine the best approach to be used in order to efficiently attain the said goals. In addition, strategic management is also beneficial in ensuring not only the success of an organisation but also its survival by adapting the whole organisation to changes in its environment and making sure that the organisation remains competitive. One of the advantages of strategic management is it enables a firm to proficiently identify how a certain organisation should deploy its resources in the environment and adapts the organisation to satisfy the

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