Strategic Management : Strategic Planning

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Strategic management is the process of selecting the organization 's goals, mossion and ways to achieve them. It is vital for any business venture to establish and implement strategy for its prosperous development, efficient functioning and success in the future. Strategic planning provides the basis for all management decisions. Otherwise, without a clear strategy, an organisation could face difficulties in achieving its mission, as every business venture requires an elaborate approach, skilful management to fulfil it, collaboration of all elements involved in the business process, flexibility and sensitivity to outer factors. The last factor has become crucial in the today’s changeable and highly competitive world. Strategic management…show more content…
Advantages This approach is quite simple and prescriptive with a lot of research and real examples. The business can easily apply, understand and deal with this method. Disadvantages The simplicity of the traditional approach acts as its major weakness, as it may not give an accurate picture of the real problem of the business: - the analysis is based on current information that limited to thinkable future - the tools and the process cannot keep up with the times and the rapidly changeable business environment, leading to lagging results - strategies are limited due to its pre-determined corporate vision, goals and mission - the strategic plans may be too inflexible for today’s pace of change. Sustainable approach According to JJJJJJJ "Sustainable development is development that meets the needs of the present, without compromising the ability of future generations to meet their own needs." This means that this approach considers environmental, social and economic limitation we will face in the future. This is a well-known fact, that the company’s main goal is maximising shareholders value. Only 40 years ago giant corporations achieved this objective at all cost without taking into account social and environmental responsibility. However, businesses were required to be
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