The Importance of Strategic Management in Business
Management Policy and Strategy
Professor Richard Corum
March 10, 2009
Strategic management has become very popular and important to business for a variety of reasons. Business has discovered that strategic management is the pathway to success. It has been generally noted in the business environment that more organizations succeed using business strategy and those organizations that do not use strategic management meet with failure and ruin. It allows a business to use forward thinking. In this process it shows a business where they are currently, where they want to be and how to get where they want to be.
Strategic management sets the goals of the business. When strategic management is implemented the management team, executive officers, and stockholders identify the goals of the business. They identify where the business is now and what the business want to accomplish in approximately the next five years. When making these decisions the strategic management team must set realistic goals. They need to consider the current market and the direction that the market is navigating towards, the competitors of the business, as well as the resources afforded to the business. Within this scope they must be open to new technology and new products and or services being offered and or developed. A primary concern is how the decisions made will affect the business and the consumer. An organization must consider what the consumer desires that they can offer within the scope of their business and how to win the consumer away from their competition. At the same time the business needs to factor in the desires of the stockholders within the organization. Strategic management spends a lot of time and resources balancing the objectives of the organization, the stockholders objectives, and the desires of the consumer. While balancing these objectives and desires the strategic...
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