What is Strategic Management? Process, Benefits, Disadvantages


What is Strategic Management? Process, Benefits, Disadvantages

Strategic Management process in simple words is all about planning and formulating effective internal and external environment procedures, strategy control plans, and operational initiatives, which aid in the development and growth of a business organization. From accounting to leadership, it involves constant implementation, analysis, and assessment of important decisions, policies, and plans in the company that potentially contribute to the short-term and long-term goals and objectives of the organization.

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Strategic Management Benefits

There are tremendous advantages and benefits of strategic management process and planning to business organizations. Firstly, an approachable strategic plan allows corporate associations to achieve their expected results/goals while keeping up with their competitors in the market by providing a better insight of business opportunities, emerging technologies, and changing customer expectations. Likewise, having a good action plan helps an organization to structure a hassle-free work environment by strengthening and supporting the company's core values and competencies. Here are some more advantages given in points:

  • Improves decision-making
  • Motivates organizations to come up with new goals to keep up with the changing business trends
  • Enhances the development of core competencies of the business organization
  • Ensures the company's aims and objectives correlate with its long-term and short-term goals
  • Provides better insight into strengths and weaknesses of the organization
  • Ensures long-time survival of the company
  • Helps in formulating effective policies and competitive strategies to keep up with the competitors
  • Increases operational efficiency and productivity

Strategic Management Disadvantages

Just like any other human resource management process, the strategic management in HRM comes with a certain disadvantage and drawbacks.

  • Formulating an effective strategic management process is complex
  • Time-consuming process
  • Requires keen observation and beyond through analysis and assessment
  • Requires experienced and skilled candidates for effective planning
  • Any pitfalls with the strategic plans are prone to liability and accountability
  • Difficult to implement
date  24 Jun 2019

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