For many years, businesses have been failing and this failure has been attributed to the inability of managers to strategically manage business processes and operations. As a result of these failures, more business managers are paying keen attention to strategic management because of its importance to the continuity of a business. Strategic management is a strategy that is focused on long-term planning within an organization that takes into consideration both the internal and external environment. Strategic management is important to corporations for different reasons, in that, it provides the management with the ability to plan for the future, making the most of a corporation’s competitive advantage, analyzing and neutralizing threats to the corporation.
Strategic management involves the set of managerial activities that allows managers to set goals and implement tactics to plan for the future. Corporations have a responsibility to their various stakeholders and their main aim is to make a profit. As such, decisions are made that will ultimately benefit the corporation.
Managers are aware that there are many forces in the business environment that will impact the corporation and as such plans have to be made in an effort to combat such forces. The government, competitors, employees or customers among others may have or expect certain actions from the corporation, thus, the corporation must take a strategic position in an effort to plan for the future.
The corporation will therefore scan the environment to determine its strengths, weaknesses, opportunities and threats and develop strategic alternatives to ensure that strengths are a source of competitive advantage and weaknesses are eliminated. Additionally, opportunities can be explored where the corporation may diversify its product offerings and develop strategies to overcome threats. This will allow the corporation to develop a reputation of...