Advantages of Strategic Management will arise as a result of a well determined goals and objectives of an enterprise and adaption of courses of action and allocation of resources to carryout those goals. A management error will result to undesired effect to the organization to an extent of being wound up. Unrealistic objectives will result to straining and wastage of resources. Business Training in Kenya has more articles
Advantages of strategic management are the prime goal of every top executive because if failure arise all the blame rests on them and termed as poor planners.
Advantages of Strategic Management
- long time survival of the organization
Advantage of strategic management will arise as a result manager would have scanned or researched on the environment to build a competitive advantage over the competitors.
- strategic direction
Advantage of Strategic Management brought by firm knowing is strategic direction is that by strategic management firm vividly defines its clear desired level of performance hence sets its direction such that everyone in the organization evidently know where they are heading to. Strategic management therefore acts as a road map to certain destination.
- Understanding of changing environment.
Advantage of Strategic Management above is possible because managers know the environment that they are or will operate into hence making it possible to predict the future, For example the technology that a competitor may adopt. This will enable the organization to be proactive rather than reactive to emerging issues that may jeopardize the organization efforts hence facilitated proper planning.
- ) It obtains a sustainable competitive advantage.
This is the most critical advantage of strategic management. The management understands its SWOT anlysis well thus strives to turn competitor’s strengths to their weakness and their threats to be their opportunities.
- ) it results into cost savings.
Reasons Advantages of Strategic Management may be lost
Advantages of Strategic Management may not be long lasting to and organization if;
- If competitors discover the organization competitive advantage. If the management or other organization staff cannot keep or hold the firms secrets will spill off the organization competitive advantage. Once the competitors discover it will use it to your disadvantage thus loosing the Advantages of Strategic Management.
- Lack of time to time evaluation. Unless evaluation is done on the strategy formulated the organization may be overtaken by events example due to the turbulent environment hence loosing the Advantages of Strategic Management.
- Poor budgeting during strategy formulation stage. When formulating the strategies the organization will follow sufficient resourced should be set aside for facilitate on the implementation. Failure will result to strain and stress resulting to failure hence meaningless Advantages of Strategic Management achieved.
Disadvantages of Strategic Management
- Strategic management effects may not be realize in the short term as it’s a long time
- Turbulent environment may frustrate the organizations plans. Strategy taken to take a future even may be contrary to the organization expectations.
- It is an expensive task to hire consultancy for effective strategy and objectives formulation.
- Hampers flexibility to the organization arising opportunities. When organization undertakes strategic management process, it may hinder the organization embracing of opportunities that may be available. In addition, some organizations develop a strategic management process that become excessively formal with no room for changes.
Conclusion on Advantages of Strategic Management
Advantages of Strategic Management will or can be only realized if the top executives ensures that the strategic management process being used is appropriate and detailed consultations is being made to realize Advantages of Strategic Management.