Benefits Of Strategic Management to the business are both quantitative and qualitative. A business that is practicing strategic management has a better operation and effective plans that lead to achievement of long and short term goals. Strategic management is the process or method that are available to the organization top manager in order to be in a position of identifying and using various strategies that will benefit the business in its performance. The main Benefits Of Strategic Management is to improve the performance of the business and put it in a position of competitive advantage. However there are other many Benefits Of Strategic Management. Business Training in Kenya has more articles.
Financial Benefits Of Strategic Management
Benefits Of Strategic Management can be looked from the financial perspective. An organization can gain from its Strategic management in the following ways;
- Gaining the competitive advantage of the product market. This is brought by the definition of roles and obligation of every employee to support the business in its operation. When employee become motivated and their roles are well defined, they improve their performance, which reduces cost of business in some ways and this may lead to improved products. Therefore, the organization might become best in that sector.
- Improved performance is established after the company has gained the competitive advantage. The performance comes to be from the high profits realized in the company products which create a better performance for the company.
- Increased sales. This Benefits Of Strategic Management is realized from the organization competitive advantage which means that more customers will be willing to but the company products. Therefore, increasing the revenue.
- Increased productivity. When the sales of the products increase, the company needs to increase in production capacity so that it can meet the demand of the market.
- Increased profits. More sales means more profits. Also because there are measures put to ensure that there is cost minimization, then it means that at the end of the day the company will have saved more profits that it can use to expand its business.
Non financial Benefits Of Strategic Management
Benefits Of Strategic Management can also come in others ways that do not have the money measure. Some of these benefits include;
- Defining clearly the direction to which the organization should follow in order to successfully achieve its set goals. Every employee has his or her well defined roles that are to be followed to improve the performance.
- The top management is able to focus on the critical factors or problems that affect the organization and later come up with desirable measure to control or prevent the problem occurring.
- The major non- financial Benefits Of Strategic Management is to prepare the organization for any market challenge or risks that may sometimes be severe for the business to survive.
- Strategic management also reduces the resistance that can be developed by the organization employees at a time of change implementation.
Factors preventing the organization from having the Benefits Of Strategic Management
Benefits Of Strategic Management are easy to get but only if the organization has the suitable environment that will allow the implementation process of the strategic management. For instance, the top managers should have enough skills to make decisions that will be effective in the organization improvement in performance. The managers must have knowledge and analysis of the entire product market so as to know what measure to put to improve the business operation. There should be application of the SWOT analysis within and outside the business environment. Without that analysis, it will be hard for managers to make considerable decisions that will create Benefits Of Strategic Management.
Conclusion in Benefits Of Strategic Management
Benefits Of Strategic Management can be realized in the business if the strategic management is effect in its decision making and in coordination of the business operations.
There are several financial and non-financial results an organization can get from the Benefit Of Strategic Management.