IMPORTANCE OF STRATEGIC MANAGEMENT

1. It gives direction – it enables one to develop plans that enable one to achieve certain
objectives.

2. Help organizations gain a competitive edge over it’s competitors.

3. It helps boost work place motivation – people are more motivated when they have a sense
of direction.

4. Business profit – strategic management leads to financial gain.

5. Resource allocation – having a strategy enables an organization to use their resources

more sparingly and wisely.

6. It enables the organization achieve it’s goals

7. Improves organizational performance since employees are able to work more efficiently.

8. It leads to customer/ stakeholder satisfaction

9. It encourages forward thinking – the organization becomes future oriented

10. It helps the organization to cope with uncertainties in the internal and external
environment.