(i) Strategy formulation enhances the company’s ability to prevent problems.
(ii) The company is able to focus its scarce resources on the best available alternatives.
(iii) It enhances understanding of the company operating environment hence being able to allocate resources more effectively and efficiently.
(iv) It enables continuity of the organization for example,long term strategic plans enables a company to focus on future performance of the firm.
(v) Clarity of strategic vision for the organization
(vi) Focus on what is strategically important tot the organization
(vii) Better understanding of the rapidly changing business environment.
(viii) Strategic management reduces the chances of resistance among the implementers of strategic decisions.
(ix) Strategic management enhances the focusing of the organizations activities
towards achieving the overall objectives of the firm.
(x) It sets parameters against which the success or failure of a company can be
measured.
or
1. It helps the company to identify opportunities for future business or to establish the
direction the organization will take in the future.
2. It helps management to focus on both short term and long term goals. Where the concern
of management is on short-term goals the focus is on efficiency of various programmes
but where the concern of management is on long term goals, their focus in on efficiency
and effectiveness of the organization as a whole.
3. It helps the organization to respond to various environmental changes and in particular
helps the manager to become proactive and thus futuristic instead of been reactive.
4. It help the company to obtain complete edge in the market so as to survive in its industry
in particular.
5. It helps the manager to focus on what the needs of customer of the organization.
6. It helps the management to focus on utilization and placing resources where the impact
and profits are greatest.
7. Strategy also helps the management to provide continuation within a form of encouraging
the corporation and harmony of everyone within the firm.
maurice.mutuku answered the question on August 1, 2019 at 06:21
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