Why Strategic Management Is Important?

It is the sum total of all the clever decisions taking by the managers across the organization at different points of time for the benefit and success of the business. It is done primarily on the basis of the SWOT analysis.

SWOT is an acronym formed out of four aspects of a business that has to be analyzed Strength, Weakness, Opportunity, and Threat. The manager has to understand where the business excels (strength), where it struggles (weaknesses), where it can succeed (opportunity) and how it could fail (threats).

Doing this analysis a clear picture of what the business will face and will have to do will be formed and it is on the basis of this picture that the process continues.

How Often Should Strategic Management Activities Be Performed?

Strategic Management is the identification and illustration of the strategies that management implements in order to attain superior financial results for their organization, especially, in comparison to the competitors in the same industry.

Strategic management can also be observed as the set of decisions undertaken by a manager impacting the results of the organization’s competitive performance. Detailed analysis of the available information and creative utilization of resources (may not be unique) is necessary for making important strategic decisions.

While making strategic decisions, significant planning is required for both predictable scenarios as well as unpredictable situations.