Concept of strategy

Strategic management allows and organization to be more proactive than reactive in shaping its own future; it allows an organization to initiate and influence activities and thus to exert control over its own destiny. Small business owners, chief executive officers, presidents and managers of many for-profit and non-profit organizations have recognized and realized the benefits of strategic management.
Historically, the principle benefit of strategic management has been to help organizations formulate better strategies through the use of the more systematic, logical and rational approach to strategic choice.
1. Improvement in sales.

2. Improvement in profitability.

3. Improvement in productivity.
1. Improved understanding of competitors strategies.

2. Enhanced awareness of threats.

3. Reduced resistance to change.

4. Enhanced problem-prevention capabilities.


PIT FALLS OF STRATEGIC MANAGEMENT
There are many reasons why strategic plans fail, especially:
  • Failure to execute by overcoming the four key organizational hurdles[85]
  • Failure to understand the customer
  • Inability to predict environmental reaction
  • Over-estimation of resource competence
  • Failure to coordinate
  • Failure to obtain senior management commitment
  • Failure to obtain employee commitment
  • Under-estimation of time requirements
  • Failure to follow the plan
  • Failure to manage change
  • Poor communications

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