Strategic Mangement is the managerial process for determining the objectives of the organization , formulating the strategies , implementing and applying those strategies in due course of time . Importance of Strategic Mangement are as follows :
(i) Clarity of Objectives and Incentives : Strategic Management gives information about the objectives of organization to employees , so as to inspire them to achieve the objectives
(ii) Effective Operation of Business : In Strategic Management changes may be ascertained more easily . Result is by innovations ,, organization can earn more profit and risk may be reduced and makes effective operations of the business possible .
(iii) Increase in Ability and Efficiency of Organization : This technique helps the organization to increase its ability and efficiency such as ñ establishing optimum adjustment with the environment , reducing the conflicts between the expectation and performance functions .
(iv) Helps in Best Decision Making : Strategic Management helps in taking best decisions , like ñ availability of facts , date and information , testing the main problem and improvement in searching the alternatives .
(v) Environmental Changes and Benefits of Opportunities : Strategic Management makes capable to Manager and Creates the Capability to take the benefits of Special Opportunities . It also helps the Managers to manage things in a better way and continuously making adjustments with the environment .
(vi) Improvement in Employees Motivation : Strategic Management improves its Employees Motivation , because in strategic planning goals are required and clarified by the employees .
(vii) Reduces Resistance to Changes : Strategic Management reduces the resistance to changes , since it removes the doubt , rumors and misconceptions of the employees ..
