Ohne Titel

Define Strategic management

• Strategic management can be defined as a process whereby all the organisational functions and resources are integrated and coordinated to implement the formulated strategies, in order to achieve long term goals of the organisation and therefore gain a competitive advantage through adding value for the shareholders.

What are the benefits of strategic planning?

• - Higher Profitability : Over the the years organisations that have used strategic management as the foundation for their business management as the foundation of their business have shown greater improvement in turnover and profits.
• - Higher productivity : Not only d these organisations show higher profits, but also through better planning and utilization of resources and material (inputs) they tend to deliver more and better outputs, thus improving their productivity.
• - Better communication: The importance of communication in all kinds of organisation has increased over the past decade - only only external communication with the stakeholders but specifically internal communication. Through effective strategic management, all employees tend to understand the goals of the organisation so much better and this leads directly to better and more effective communication.
• Strategic management decisions that are communicated effectively will lead t better understanding by employees and other stakeholders. An understanding of why the organisation does certain things in a certain way and where the organisation is heading will make all stakeholders more committed to the cause.
• - Empowerment : This can be a direct benefit of strategic management if it is managed correctly. The biggest mistake strategic managers make is to develop or formulate strategies themselves and then channel them down to functional or operational managers to execute. Employees have to take direct control and ownership of certain strategies, and if they are involved throughout the whole process of strategic planning, they will be committed and empowered to implement strategies successfully.
• - Discipline and sense of responsibility
• - Time management
• - Resource Management
• - Framework for employees
• - Proactive thinking for employees