The significance of strategic management in maintaining a sustainable and long-term

business

In today's highly competitive business environment to be able to achieve sustainable

development and long-term business in this field, they must maintain the ability to cope with

complex difficulties and embrace new opportunities that will possibly arise at any moment.

That's why it is essential to understand the purpose and use of strategic management to ensure

the success of an organization in the future. This process helps to create plans and different

strategies to accomplish goals. It provides businesses with a framework for navigating the

intricate details of the business environment, making legal judgments, and adjusting to shifting

conditions.

But businesses in the twenty-first century regardless of size will be a part of the global

business community, both shaping and being shaped by global events, changes in society, and

pressures. The reason for this is the constantly changing, highly competitive, and dynamic nature

of the corporate environment. The dynamic between business and society has undergone a

significant transformation throughout this time. Global trade, the increasing size and influence of

corporate entities, the restructuring of the government, and the growing importance of

stakeholder interactions, knowledge, and brand reputation as strategic assets have all played an

important part in this transformation according to the study of Olanipekun, 2014. Because of the

intense competition in the corporate world, business decision-making has become more complex

and technologically advanced. Modern executives are responsible for more than just overseeing

diverse and multifaceted internal operations. Through the application of strategic processes,

businesses can predict changes in the environment more accurately and be more prepared to

respond to unforeseen demands from both the internal and external markets.
 Strategic management also helps to have a well-organized and healthy environment for

the employees and the business. Through this, it gives way to having a clear vision, purpose, and

mission and plans and decisions to be made by an organization. It also helps to cope with the

competitors around. Entrepreneurs will strive to be better and surpass whatever their competitors

have. Having strategic management in a business also helps to have an appropriate structure or

organizational performance, develop tactics, control activities, and improve collaboration. It also

aims to encourage and ensure everyone strives and has the same goals and objectives. It also

focuses on the steps, processes, methods, and procedures that can help to create a profitable

business and how and where to get other resources such as employees, machinery, and other

essential things needed in business. When the strategies for a business are implemented and

formulated, they can use it as a basis and a concerted plan for the steps to be made. Also, what an

organization wants to achieve and reach can be better evaluated and tracked. In addition,

effective strategic management can lead to increased profits, improved retention and customer

relationships, competitive advantages, sustainability of the organization, and organizational

productivity.

Based on Porter (1985), connecting a business to its surroundings is essential in

establishing a comprehensive strategy. According to Aremu (2010), having an organized strategy

will bring about enthusiasm among every stakeholder involved, including creditors, suppliers,

consumers, and employees. This will promote commitment, which will boost the company

organization's performance. Change can be managed methodically with the help of strategic

management. It helps companies to carefully allocate resources in the direction of their intended

future. According to Sharabati & Fuqaha (2014), strategic management is the most important

procedure that sets organizations differ in the age of globalization period. The essential
procedure for achieving an organization's vision, strategy, and goals is strategic management. All

companies, regardless of who they are or what they do, should use strategic management

techniques to make sure they blend in with their surroundings.

As per Nag, Hambrick, and Chen (2007). It includes determining the goals, mission, and

vision of the organization; developing plans and policies, usually in the form of projects and

programs, to help achieve these objectives; and then allocating funds to put the plans, projects,

and programs into action. A level of managerial activity listed below goal-setting and beyond

tactics is referred to as strategic management. The enterprise is given overall direction by

strategic management.