Importance Of Strategic Strategy

2176 Words9 Pages
It has become evident in the modern society that most of the successful companies put a generous amount of effort into developing their strategies. Strategic management helps an entity to clearly identify its goals and objectives and achieve them quickly and efficiently. However, it is still argued that the strategy is not an essential component of organizational management, and it is not necessary to invest in strategic development. This essay critically analyses the question of whether it is essential to have strategy as a management component, gives the definition of a strategy in a managerial context and briefly outlines possible problems of modern strategic development.
What is a strategy?
It is essential to comprehend the core meaning
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In his opinion, strategies are vital management components because without strategy, an organization is simply a ‘collection of individuals, each going his or her own way’ (Mintzberg 1987b). Therefore, strategy is used as a team-building tool, making various parts of an organization work together towards the common goal. Managers, who use a strategic approach in leading the workforce, tend to be more successful in bringing the team together, as their dynamic leadership and strategic vision galvanizes others into concerted action (Jackall 1988). Strategic management not only helps to achieve organizational goals, but also raises work efficiency and, therefore, increases the overall productivity of the company. Moreover, Mintzberg (1987b) claims that strategy helps to differentiate an organization from competitors and make its objectives clear to external stakeholders. Thus, it becomes a mediating force that connects external and internal parts of the organizational…show more content…
2014). With increasing competitiveness of modern business environment, it is crucial for a company to develop a strong strategy with clear objectives in order to beat its competitors. Well-developed strategies may help an organization identify areas of business that require significant investments, and inefficient parts of an entity that need further development (Grant et al. 2014). An organization with low commitment to strategic management may be unable to quickly adapt to the changing business environment and, therefore, companies that implement strategies in their workforce have a competitive advantage over them. For instance, the CSR practices that were outlined above can become a part of organizational strategy and increase the legitimacy of company’s actions, attract investment and raise profitability. It is also important to understand the strategies of competitors whilst developing your own. When a company analyses the strategies of competing businesses, it can manage its own strategies and put itself in the reactive position with the ability to control and influence the business environment (Robert 1990). When an entity understands its competitor’s strategy, it can adopt successful elements of it and adjust its own organizational strategy, making it more effective. Overall, companies that use strategic management tools tend to be stronger competitors on the business arena and gain
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