Benefits of Strategic Management - Essay Example

The use of strategic management is very important towards the success of an enterprise. Strategic management can be defined as the development of a corporate strategy that can be used to accomplish the goals of the firm (Qfinance, 2012). The executive management team of an organization is responsible for the use of strategic management. In publicly traded companies the board of directors also contributes to the strategic management initiatives of a company. An example of a strategic management decision is choosing to move from a domestic firm into a company that does business internationally.

Companies that utilize strategic management can greatly benefit from its implementation. Strategic management allows managers the ability to forecast the future. The proper use of strategic management can increase the productivity and profitability of a business. An example of a strategic management decision is using only a few of the patents a company develops in order to postpone the release of new products for the future. An industry in which this occurs a lot is the pharmaceutical industry.

Another benefit of strategic management is that it can be used to change the corporate culture of a company. The use of strategic management can also help an organization gain a competitive advantage. The accounting department benefits from strategic management because it allows the firm to make better budgeting decisions (Hainescentre, 2012). Planning for the future allows a firm the ability to predict future expenditures and income streams. Strategic management can also be used to improve decision making (Robinson, 2005).

\ReferencesHainescentre.com (2012). 15 Key Benefits of a Strategic Management System. Retrieved February 10, 2013 from http://www.hainescentre.com/strategic-management/benefits.html Robinson, R. (2005). The advantages and disadvantages of strategic management. Retrieved February 10, 2013 from https://charityvillage.com/Content.aspx?topic=the_advantages_and_disadvantages_of_strategic_management Qfinance.com (2012). Definition of Strategic Management. Retrieved February 10, 2013 from http://www.qfinance.com/dictionary/strategic-management