Strategic Management

Strategic Management

1.Importance of Strategic Management in Today's Corporations

Strategic management is based on a set of actions and decisions that can help organizations or corporations in managing long term performance. Strategic management helps a corporation in maintaining clear sense of strategic vision and it keep all the activities aligned to the purpose of its existence. The change that is found in today's corporations is mainly due to the improved understanding level of dynamic environment.

It allows the corporation in becoming more proactive rather than reactive (Nag, 2007). The most important thing that is required in management of a corporation is control over its own destiny; this can be effectively done with the use of strategic management.

2.Role of Strategic Management in a corporation

The strategic management is developed within an organization or corporation with the help of top level management's thinking, decision making and analytical approaches. The top level of management mainly President, Vice President, CEO and COO play an active role in development of strategic management within an organization (Burnstein, 2010). Strategic management helps and organization in developing more systematic, rational and logical approach to all the strategic choices as it facilitates the decision makers in analyzing the future risks and consequences attached to each choice. An organization can enjoy both financial and non-financial benefits by using strategic management.

The financial benefits that an organization can enjoy will be in the form of improved sales, productivity and profitability. On the other hand, the non-financial benefits that an organization can have with strategic management will be in the form of reduced resistance to have change, problem prevention capabilities are enhanced, management can become more aware of upcoming threats and therefore can plan in advance to overcome them.

3.Learning Organization

Learning organization is an organization that keeps on facilitating their employees with effective ...