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The Importance of Strategic Management

We all know that people and organizations don't plan to fail. But often, they just fail to plan and / or their plans are incomplete and inconclusive.

1. Why would you say that strategic management is important to the success of an organization?

2. Please list and discuss a few key reasons.

External Environment

The external environment contains threats, and it contains opportunities. This is "OT" of the SWOT analysis of course. Give an example or two of a company you know or have read about where you feel that they did a poor job of either dealing with potential threats or capitalizing on new opportunities.

Internal Evaluation

Internal Evaluation; this is the "SW" of the SWOT analysis. Every organization has strengths and weaknesses. As with the last question, give an example of a company you know or read up on who did not really develop their strengths or deal with key weaknesses.

Cost Leadership or Differentiation?

Is it possible for a company or business unit to follow a cost leadership strategy and a differentiation strategy simultaneously? Why or why not? Use an example in your answer to illustrate your position.

Strategic Controls

If you were in charge of an organization (Profit, Non-profit, volunteer, defense). Which controls would you want to review to determine if the organization and the individuals are moving in the correct direction. List the top three items you would want to see.

Solution Preview

1. Why would you say that strategic management is important to the success of an organization?
Strategic management is important to the success of an organization. The reason for this is that Strategic management gives direction to an organization. It sets up the method by which the organization will achieve its goals. In addition, it helps the organization remain on course, steers it, helps achieve goals in time and within budget.

2. Please list and discuss a few key reasons.

- External Environment
The external environment contains threats, and it contains opportunities. This is "OT" of the SWOT analysis of course. Give an example or two of a company you know or have read about where you feel that they did a poor job of either dealing with potential threats or capitalizing on new opportunities.
The examples are that of the US car makers, Ford, ...

Solution Summary

The solution puts a company's external environment, internal evaluations, cost differentiation and controls under the microscope to see how one would incorporate each in a solid strategic plan. Real-life examples are given along with many reference links in this 535-word response.

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