The Importance Of The Strategic Management Process Essay
Strategy enables businesses to evaluate the external opportunities and threats that effect their success and competitive advantage in the market. This paper explains the importance of strategy in business, and analyzes the main components of the strategic management (three-tier) process. It also discusses the significance of having a future oriented plan by defining an organization’s vision, mission statement, purpose, philosophy, and goals. In addition, the paper expounds upon the strategic process as an input for future business decision-making.
The Importance of Strategy in Business
Pearce and Robinson define strategy as “large-scale, future-oriented plans for interacting with the competitive environment to achieve company objectives” (2013, p. 4). Strategy is important in business because it allows organizations to create a “vision and direction” for the company in order to achieve its goals. A business strategy also allows companies to determine and define their purpose and position in the market. In addition, businesses use strategy to define and evaluate the four P’s of the marketing mix “(Price, Product, Promotion, and Place)” (Martin, 2014). Furthermore, businesses use strategy for financing, allocating resources, and logistical measures that are crucial to the growth and success of business operations (Pearce & Robinson, 2013).
The Strategic Management (three-tier) Process
Pearce and Robinson also defined…