Why Is Strategy Important to Business

786 Words4 Pages
Introduction to Strategic Management
Why is Strategy Important to Business

Kaplan University
Management Policy and Strategy MT 460 – 01
Unit 2

The question of why strategy is important to business is compelling to say the least. There are a number of reasons why strategy can and often does determine the success, growth or failure of a business. Without a strategy the business is responding to internal and external circumstances or demands without the advantage of a plan in place to address them. This sometimes leads to wrong decisions or weak decisions and the business loses the opportunity to turn the circumstance into an optimal resolution that results in profits and better business.

Strategy tells where you are, where you
…show more content…
This leads us to the critical issues directly and indirectly impacting the business. With all of this done, now we combine this information to create the SWOT that will generate a picture of both external and internal conditions present and future, good and bad that will give us realistic and attainable goals. The SWOT will allow us to make short term plans and long term goals and put in place the tactical initiatives necessary to achieve the defined mission goals with a timeline, necessary resources, and where each initiative fits and in what priority. These steps will make the success of strategic planning successful.

References

Brainy Quotes, n. d. Sun Tzu Quotes Retrieved from Retrieved from http://www.brainyquote.com/quotes/quotes/s/suntzu129845.html#ixzz1of5SCE8d

Why Strategy is Important, Sinister, 2007 Retrieved from http://businesscoaching.typepad.com/the_business_coaching_blo/2007/10/why-strategy-is.html

Strategic Management, Pearce & Robinson, Chapter 1 pgs.
Get Access