Question

Why has strategic management become so important to today's corporations? What information is needed for the proper formulation of strategy? Why?

Answer 1

Strategic management is important in the current business organization due to following factors=

It is important to guide the organization to ascertain or predetermines direction. It is helpful in defining the organizational goals that are according to the organizational mission

It makes the organization proactive rather than reactive and thus helping the firm to meet with the uncertain conditions and competition

It lays the foundation for a variety of important decisions

It helps the organization to be ready for future challenges

In order to deal with the competition, it helps the organization to develop important capabilities

In order to firm the strategy, the following information will be required

Mission, vision, and objective of the organization

Strength and weaknesses of the organization

The type of internal capabilities possessed by the firm

The prevailing competition in the industry and analysis of the environmental factors

Different resources and capabilities of the organization

The future goals and objectives of the organization