Question

Discuss 4 reasons for companies to subscribe and practice strategic management

Answer 1

A Strategy is defined as a long-term goal of an enterprise.

Strategic management refers to the Planning, Formulation, Implementation and control of organizational ideas.

It helps in formulating the objectives and the ways to execute those objectives. The objectives are formulated after rigorous study of markets, products, competitors etc.

The main reason for companies to follow strategic management are:

• The objectives are formulated after SWOT analysis, which helps to understand the difference between a successful and an unsuccessful business objective.
• It promotes communication among all levels of business hierarchy.
• A number of opportunities can be tapped using this process.
• The objectives formed in this method are formulated proactively which helps in a rapid and sustainable organizational growth.