Why is strategic management so important?
There are three reasons:
- It can make a difference in how well an organization performs. That explains success of some businesses and failure of others, even when faced with the same environmental conditions. It appears that organizations that use strategic management do have higher levels of performance. And that fact makes it pretty important for managers!
- Managers in organizations of all types and sizes face continually changing situations. They cope with this uncertainty by using the strategic management process to examine relevant factors and decide what actions to take.
- Strategic management is important because organizations are complex and diverse. Each part needs to work together toward achieving the organization’s goals; strategic management helps do this. Organizations which have millions employees worldwide working in various departments, functional areas, and physical locations, those organizations use strategic management to help coordinate and focus employees’ efforts on what’s important as determined by its goals.