The Importance of Strategic Management

Why is strategic management so important? According to Hunger & Wheelen, “Organizations that engage in strategic management generally outperform those that do not. The attainment of an appropriate match or fit between an organization’s environment and its strategy, structure, and processes has positive effects on the organization’s performance. A firm cannot afford to follow intuitive strategies once it becomes large, has layers of management, or its environment changes substantially. As the world’s environment becomes increasingly complex and changing, strategic management is used by today’s corporations as one way to make the environment more manageable.” Consistent with the importance of strategic management is the importance of staying informed on demographic, cultural, and political changes that affect a corporation’s business around the world.

Dog : Oh no! not again !!!!

Strategic Management Formulation: Assessing Company's Internal & External Situation

The diagram that breakdown the process of formulating strategic management activities, by conducting internal and external analysis based on company mission.