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Both methods of strategic management employ management theory and practices. Prescriptive strategic management means developing strategies in advance of an organizational issue.ĭescriptive strategic management means putting strategies into practice when needed. Strategic management can be either prescriptive or descriptive. Strategic management requires setting objectives for the company, analyzing the actions of competitors, reviewing the organization's internal structure, evaluating current strategies and confirming that strategies are implemented company-wide. By implementing strategic planning and thinking, they will be better prepared to face future challenges. If managers do this consistently, they will be more aware of industry trends and challenges.

Increased managerial awareness: Strategic management means looking toward the company's future. An organization that is working in unison towards a goal is more likely to achieve that goal. Sustainable growth: Strategic management has been shown to lead to more efficient organizational performance, which leads to manageable growth.Ĭohesive organization: Strategic management necessitates communication and goal implementation company-wide. Strategic management offers many benefits to companies that use it, including:Ĭompetitive advantage: Strategic management gives businesses an advantage over competitors because its proactive nature means your company will always be aware of the changing market.Īchieving goals: Strategic management helps keep goals achievable by using a clear and dynamic process for formulating steps and implementation. Strategic management ensures the steps necessary to reach a business goal are implemented company-wide. Strategic management can help companies reach their goals. Benefits of strategic managementĪchieving organizational goals takes planning and patience. In this article, we explain the benefits of strategic management, how it works, and the types and stages of strategic management, and we provide an example to guide you. Companies of all sizes and in all industries can benefit from the practice of strategic management. Strategic management requires ongoing evaluation of internal processes and external factors that may impact how a company functions. Strategic management is the planned use of a company's resources to reach its goals and objectives.