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 envir...