Importance of strategic management essay

With this information, the firm develops its vision and mission and formulates its strategy. However, to be more effective in achieving the goals of the firm, other ingredients are necessary like excellent judgement of the manager, flexibility of the plans, and even luck.

The highest price increase was recorded in industrial non-food products which amounted to 2. GFR should bear in mind that it is also in the state's interest for the factory to become operational as soon as possible to help service the Serbian locomotives fleet, therefore a debt erase from the state would see both parties satisfied.

There are a few areas that I will be analysing to highlight their effects to an organisation. Get Essay For example a sale department may have plans to increase the sale with a certain percentage. The planning process an organization undergoes helps identify the outcomes it wants to achieve through its programs and the specific means by which it intends to achieve them Strategic management looks at the threats present in the external environment and thus companies can either work to get rid of them or else neutralizes the threats in such a way that they become an opportunity for their success.

Importance of strategic management pdf

Katsioloudes In such a case, therefore, relevant strategic inputs derived from analyses of the internal and external environments are necessary for effective strategy formulation and implementation. Conclusion As it has been discussed in every step of the graduation thesis and demonstrated many times in real life, careful Strategic management planning can often prevent a company from committing mistakes that will later on take valuable time to correct. It is an art because during the implementation phase of the plans made, managers are given the flexibility of implementation considering the fact that there are conditions during this phase that may intervene and thus require modification of the plans in the course of their execution. Adapting to new conditions and constantly learning what is well enough to continue and what needs to be improved is consequently a normal part of the strategy-making process and results in an evolving strategy. When implanting a new strategy, it is dangerous to ignore the other components because strategy implementation requires an integrative point of view. The highest price increase was recorded in industrial non-food products which amounted to 2. Altogether, this integrative incorporation allows a manager to develop implementation activities that are realistic Raps June Strategic management also adds to the reputation of the organization because of consistency that results from organizations success. This sends a clear message to the domestic and foreign investors that the country still experiences macroeconomic disorder. Strategic management looks at the threats present in the external environment and thus companies can either work to get rid of them or else neutralizes the threats in such a way that they become an opportunity for their success. Immediately recognizing the huge business opportunity, with the possibility of opening up a new factory for train servicing in a favorable situation, GFR mobilized and organized its resources to meet the tender requirements and after several rounds of negotiation with the state and its organs, where the company had to present in detail its operational plan, it was awarded the right to buy the factory and put it back on its feet. Technological Factors Research and Development- Traditionally, a significant level of research was undertaken in research institutes and universities in Serbia. There are a few areas that I will be analysing to highlight their effects to an organisation. In the case of Grup Feroviar Roman and its expansion on the Serbian Market,the political stability of Serbia in the past decade has been negative as the country is well know for its prolonged history of wars and conflicts although there are important signs that Serbia is making efforts to stabilize under close European Union supervision.

Moreover, without understanding the greater course of strategy, employees cannot contribute to an effective implementation. How to cite this page Choose cite format:. The Republic of Serbia is ruled in accordance to a constitution, which was adopted by a referendum in October

benefits of strategic management pdf
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Importance of strategic management