#BENEFITS OF STRATEGIC MANAGEMENT TO A COMPANY?

Strategic management refers to an organization’s resource management techniques to attain its goals.

It is a tactical measure to ensure maximum profits for a company.

-Gives a directional approach to the company’s overall planning and management to facilitate
maximum output.

- Save time down the line

- Hours spent in planning save months wasted in development

- Facilitates an organization to gain a competitive edge in the market.

- Financial growth. It is important that the company’s higher management pays lots of attention to
evaluating company’s capabilities, especially financial ones, and gives the right direction for their
appliance. All this results in increased profitability of the company.

- Endurance. Market is constantly changing and to be able to withstand its challenges it is important
that companies have a clear vision of their opportunities in the future and their moves are strategically
planned.

- Sagacity. When you are involved in the strategic planning, especially in the case of management, it
is easier for you to understand your competitors and how to overcome them.

- Evolution. Strategic management means that you are constantly looking for ways to improve the
already existing structures within your company, therefore, optimizing its activity and improving the
overall performance.

To formulate a successful strategy for a firm, there must be several steps that need to be taken care of
which will ultimately lead to the success of a company.

These include:

1. Strategic intent

This pertains to the goal establishment on a feasible note, and realistic profit planning.

2. Strategy formulation:

This includes internal and external analysis of the company and the market.

SWOT analysis is the most common method for internal analysis which would lead to the formulation
of an efficient strategy

3. Strategy implementation:

After the formulation of a strategy, its implementation is what counts.

While formulating a strategy, one must keep in mind the scope for empirical change and situational
differences.

Vigilance while implementation plays a major role in successful implementation.

Only 40% of the formulated strategies are the ones that are genuinely successful.

4. Strategy evaluation:

After the implementation, it is very important to find patterns of loopholes and successes in your
strategy. Thus, aiding in the rectification and future implementation.