To determine:
The importance of strategic management for a company and whether an organization can be successful in the absence of a strategic plan.
Introduction:
Strategic management refers to the important business components that helps in designing and implementation of the organizational initiatives and goals suggested by the stakeholders. It is very important to have the strategies in place so that decision can be made in a wise manner and the operation and function of business can be supported.
Answer to Problem 1RDQ
Strategic management is important for an organization to grow its resources or maximize its resources. It allows the organization to monitor the progress of the company and make necessary changes as and when required. Setting initiatives and goals of an organization is difficult without strategic management planning.
Since, strategic management is required in all areas that decide the success of an organization; therefore an organization cannot be successful in the absence of a strategic plan.
Explanation of Solution
Strategic management is significant because it assists the organization in decision making and maximizing the profit. Strategic management is an important component in different areas of an organization that are crucial for its success, such as planning, forward thinking, allocation of resources, weakness and strengths, impact on the environment.
In planning, strategic management helps in prediction of the future trends that assist the organization to decide its future course of action well in advance. In forward thinking, A long term and clear goal can be made through a well though out strategy. These goals help in achieving overall growth of an organization. In resource allocation, strategic management enables an organization to make selections under pressure with availability of limited resources. It also assists organizations to invest its resources in most promising opportunities and in a wise manner. When it comes to weakness and strength, strategic planning helps in filling the gap between the strength of a company and the capability void. Strategic management helps the organization to identify possible market shifts in the future that may impact the business and its potential effect on the environment.
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