Wednesday, June 4, 2014

Strategic Management: Need of Strategic Management

Need and Importance of Strategic Management

Why do we need strategic management and why it is important? Strategic management has significance due to the following reasons:

Due to rapidly changing business environment: In a rapidly changing business environment strategy formulation should therefore be considered as a continuous process of learning.

Establishes guidelines: Strategic management Establishes Guidelines to provide assistance and support for the development and Provide a base from which progress can be measured.

Systematize decision: Strategic management helps in systematizing an organization's strategic decisions and actions.

Research and development: The strategic-management process facilitates cross-functional approach for managing the R&D function to ensure that R&D decisions and plans must be integrated and coordinated across departments.

Resource Allocation: Strategic Management promotes effective resource allocation among the business units.

Develops communication and co-ordination

Helps managers to take a holistic approach


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