Strategic Management - Benefits of strategic management
The key benefits of strategic management has been to aid organizations come up with better strategies by using an even more systematic, logical and also realistic approach to strategic options.
Strategic Management provides following Financial and Non-Financial benefits:
Financial Benefits of Strategic Management
1. Study shows that organizations using strategic-management principles are tend to be more rewarding as well as productive compare to those who don't use.
2. Better-performing organizations have a tendency to carry out strategic planning to prepare for future variances within the external as well as internal environments. Firms using strategic planning show excellent long-run monetary efficiency in accordance with their industry.
Non-financial benefits of Strategic Management
1. Besides assisting organizations to prevent monetary demise, strategic management provide additional real benefits, including an increase understanding of external threats, an enhanced knowledge of competitors strengths, improved employee productivity, decreased resistance to change, and along with a more clear comprehension of performance-reward relationships.
2. Apart from strengthening managers and employees, strategic management usually helps in bringing order as well as discipline for an organization.