BENEFITS OF STRATEGIC MANAGEMENT

Strategic management offers financial and non-financial benefits. It helps an organization's leadership plan with greater intelligence and wisdom.

The ancient Hebrew king Solomon, famous for his God-given wisdom, noted in Proverbs 24:3-4, "Through wisdom a house is built, and by understanding it is established; and by knowledge the rooms are filled with all precious and pleasant riches."

SWOT ANALYSIS... One of the classic tools illustrating the wisdom of strategic management is the SWOT Analysis, which considers internal organizational strengths and weaknesses in light of the environment's threats and opportunities to develop strategies for success.

The SWOT Analysis helps management discern and choose the most advantageous strategic choices customized for a company's situation.  It may seem a straightforward exercise to some but a SWOT Analysis requires candor, bold integrity, knowledge and awareness, discernment, and proven business experience and savvy to identify key internal and external factors, as well as prioritize them effectively. Call on O'Hara Business Strategies (and check out our website at oharabiz.com for more information).

OTHER BENEFITS... Strategic plan also offers some or all of the following financial and non-financial benefits:

• Clear direction. Strategic management sets a direction for an organization and clarifies its mission, helping to reach goals and prioritize resources wisely!
• Operational improvement and cost savings. Efficiency and effectiveness often result from the focus and optimized use of resources realized from wise planning.
• Increased profits. Various researchers have shown this link which comes from the competitive advantage and differentiation often achieved from strategic management.
• Improved, faster and more effective decision making.
• More motivated and inspired employees.

STRATEGY THROUGH HISTORY...

    In the complex world of the 21st Century, strategy in business is crucial but it has been happening throughout history.

   In 216 B.C., Hannibal led the Carthaginians across the Alps, to victory in battle against a numerically superior Roman army by using the natural forces of the terrain to defeat the Romans, who were packed so densely that they could not use their weapons effectively and having their retreat cut off, were slaughtered.

   And, in another ancient example of strategy, the God-given strength of Samson, further empowered by the "...the Spirit of the Lord came mightily upon him..." and Samson "...killed a thousand men with it", with the jawbone of a donkey he killed a thousand Philistines who were the threat to Israel in that day. 

CONCLUSION... Unlike once-and-done strategic plans, effective strategic management requires continuous planning, monitoring and testing of an organization's processes and resource utilization. The bottom line is, strategic management allows an organization to be pro-active, initiating and influencing rather than reacting and responding to its environment.

SOURCES:

1) "Concepts of Strategic Management", 2nd Edition, pgs. 27, 58-61, and pg.85, by Fred R. David.

2) "Strategic Management, A Competitive Advantage Approach, Concepts & Cases", 16th Edition, pgs. 8, 16-17 and pg. 25, by Fred R. David and Forest R. David.

3) Judges 15:14-17 and Proverbs 24:3-4 from the New King James Bible.

4) Photos used from Pinterest according to the Fair Use Rules of the U.S. Copyright Law in this article and throughout this blog.