Importance of strategic management

Strategic management is important due to following reasons:

1. Participative management :Strategic management involves interaction at all levels of organization.It promotes participant management .It empowers employees.
2. Problem prevention :Strategic management enhances problem prevention capabilities of the organization.Problems anticipated and addressed during strategy formulation stage.This facilities problem presentation during strategy implementation.
3. Better options :Group interaction generated better strategic options at alternatives for strategic choice.
4. Motivation :Employees are motivation by performances reward relationship .This improves productivity and goal directed behaviour.
5. Reduced gaps and overlaps :Strategic management takes an integrated approach to resources allocation.This reduces gapes and overlaps in activities.Rules and responsibilities are clearly specified.Strategic fit facilitates effective resources utilization.
6. Change management :Strategic management reduces Resistance to change.The participative approach promotes participation and communication .Uncertainly is reduced.Strategic change is facilitated.
7. Financial benefit :Strategic management leads to higher profitability.