Importance or Necessities of strategic management: Strategic Management refers to the managerial process of forming a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then overtime initiating whatever corrective adjustments in the vision, objectives, strategy, and execution are deemed appropriate. Anyway, the importance of Strategic management is discussed below:
(i) Anticipates weaknesses, threats, and future problems: Weaknesses, threats and probable problems can hamper the competitive abilities of the organization. Strategic management tries to get knowledge about its internal problems and weaknesses as well as external threats to face trouble.
(ii) Asses Strengths and opportunities: Strategic management helps asses the strengths and opportunities of a company. On the basis of that assessment, the company can take necessary future steps.
(iii) Provides clear objectives and direction for employees: The employees remain confused all time if the objectives of the company are not specified and the direction is not appropriate and properly managed. It helps provide clear objectives and direction for the employees.
(iv)Proper Utilization of the resources: A Company cannot be successful without using its resources properly. Strategic management helps utilize the company’s machines, equipments, capital, and human resource properly.
(v) Large-Scale Production: There is no alternative of large-scale production to become successful in the competitive market. But, large-scale production is a very complex task. Strategic management plays an important role in large-scale production.
(vi)Restoration of discipline: Every fields like family, society, State, business etc. requires following discipline. It takes effective steps to establish discipline in the different departments of an organization.
(vii) Increase of efficiency: The ultimate tasks of strategic management are to increase the skills as well as to achieve the desired goal through proper utilization of the elements and resources. It utilizes new techniques on the basis of the organization’s time, capability, and opportunities. As a result, it enhances the efficiency of the organization.
(viii) Co-ordination: Strategic management establishes co-ordination among various departments, sections and the activities and duties of the employees to achieve the desired goals. As a result, achievement of objectives becomes so easy.
(ix) Reduction of Wastages: Strategic management plays a vital role in reducing wastages. “Mass production through fewer costs” – is the main theme of modern strategic management.
(x) Development of working environment: The productivity of a company depends largely upon its working environment. It establishes effective Control and ensures accountability in the organization that helps to maintain the better working environment.
(xi) Development of industrial relation: The achievement of organization goals becomes so easy if the industrial relation is good. It plays an impotent role in the development of industrial relation through fair wage policy, selling policy, selection and promotions policy in the organization.
(xii) Research and Development: Business world is changing frequently. It invents new techniques and ways to cope condition through conducting research and development activities.
So, these are the various reasons for which strategic management is so important for any organization.