Importance of Strategic Management for Company's Growth

Why strategic Management has become so important in today’s corporations
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Abstract
This essay focuses on the importance of strategic management in today’s corporations. The essay provides an in depth analysis of strategic issues and how companies are able to deal with them through proper management strategies. The essay starts with a general introduction, and brief history on the significance of strategic management in the running of corporations. In the introduction part, the essay describes the definition, process benefits and concepts of strategic management in today’s corporations.
In the analysis section, the essay discusses strategic issues and challenges that are experienced by companies which will require them to do in order to implement a proper management strategy. The conclusion shows a clear need for strategic management practices in today’s corporations. Recommendations are also made for modern corporations that if put in to practice, will improve their sustainable development and support for many corporations in order to help them have a sustainable competitive advantage. Table of contents Abstract 2 1.0 Introduction. 4 2.0 Analysis. 5 3.0 Conclusion. 6 4.0 Recommendations. 7 Bibliography. 9
1.0 Introduction
Strategic management is a managerial process and action which determines the long term performance of a corporation. One of the areas that strategic management looks in to is the analysis of both the internal and external factors, which affects the corporation in terms of competition and growth (Hill & Jones, 2012). For corporations to overcome this, they must come up with a strategic implementation, evaluation and control plan. In doing this, strategic management emphasizes that a company should analyse and evaluate its strength and opportunities with regard to the organisation weakness and threats. Since time in memorial, the basic benefit of strategic management has always been used to help Organisations formulate business and management strategies; through a more logical, systematic a rational approach to the choice (Parnel, 2013).
This means that strategic management is a process which combines three major areas; strategic analysis, formulation of the strategy and implementation process. In another perspective, strategic management is supposed to be an ongoing process which evaluates and controls the business industry. It helps corporations to assess competitors and reassess their own strategies repeatedly, to measure whether they have succeeded in gaining competitive advantage or they have not (Parnel, 2013).
In this regard, it will assist the organisation to change their strategies or continue with the one they have if it has helped them to advance. The modern strategic management also calls that corporations change circumstances, implement new technology, fight new competitors, assess new economic, social, political and financial environment (David, 2012).
Strategic management thus, is a process that entails more than just development and planning. It is a way that helps corporations gain competitive advantage over other Organisations. All organizations need to survive in the competitive environment so as to optimize for tomorrow by analyzing the present trend. For a company to come up with better strategy, it needs to analyse the current situation of the company. It also needs to find out its position in the market. It is only after doing this that the company can be able to decide on the kind of strategy best for it. The other step is to put the strategy in to action and find out how it works, if it does not work. The company needs to continue evaluating again and again until it works (Hill & Jones, 2012).
2.0 Analysis
In today’s environment, strategic management is an important aspect for the growth of any company. It enables it to realize its weaknesses and opportunities over its strengths and opportunities. Companies also need to find ways of dealing with the external forces that might not allow them to move ahead. For many corporations, they need to come up with rule of three, which might enable them fight external interference, and other special circumstances so as to enable the company dominate the market. This calls for companies to implement several strategies.
One of the strategies is the E-Business strategies: This involves using the internet to create knowledge bases for their employees by enabling them to complete tasks from any part of the world and also get updates from managers. An E business strategy is being used by mo...