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Significance of Effective Strategic Management for Business Growth

By Sthitaprajnya Panigrahi

A common proverb goes, ‘It is too late to dig a well when you are thirsty.’ We, as per human nature do planning as we live and survive. Not much different than our lives, strategic planning or management plays a vital role in the success of a company. Strategic management refers to the continuous ongoing effort of the organization to achieve its objective. It includes the planning of the future by analyzing the current potential of the organization and the status of the existing market trends which proves to be beneficial for the company in the long run. Apart from highlighting the existing lacunas of the organization, it will help the company to achieve steady and exponential growth. The monthly and annual evaluations should be added to board meetings to analyze and implement innovative ideas for the development of the organization through efficient strategic management and planning.

The below-mentioned points highlight the importance of strategic management for the remarkable growth of the organization:

  1. Consistent Growth of The Company: Maintaining a steadfast growth graph creates an impeccable image or brand for the organization. A proper planning prior to every project or assignment gives prudence of available resources, time management, and potential of the workforce. Analysis of the after-effect following the completion of the project not only shows our progress and achievements but also demonstrates the areas in need of improvement.
  2. Increases Employee Efficiency: An evaluation of the caliber of the employees as per their performance not only makes them market-ready but also helps the organization to achieve its mission and objectives irrespective of changes in the industry.  This mapping will give an insight to the company to skill the employees as per the market demand meanwhile successfully sustaining and thriving among its competitors.
  3. Focus on Financial Flexibility: Finance plays ‘THE MOST’ crucial role in the triumph of an organization. Taking note of expenses, investments, and capital estimations will save the organization not only from many related problems but can actually be a profit fabricating factor.
  4. Avoids Organizational Gaps: Out of tons of workloads, sometimes a segment of work is left unassigned. The departmental activity which is not allotted to any employee creates a dent in the organizational performance hampering its image. Also, it will notify about any overlapping of assignments which may lead to any confusion in the future. A proper distribution of works and schedules will certainly prevent the organization from losses.
  5. Awareness about Change of Market Trends: Strategic planning and management helps the organization to analyze the changing market trends. By proper planning not only the future of the industrial changes can be estimated, but it also ensures the long term continued existence of the organization while facing the competitive and changing dynamic world.

Increasingly, Strategic management is becoming more popular among the corporate sectors as we already knew changes are inevitable. It only takes a couple of minutes to witness the rise and fall of an organization. Effective strategic management not only illustrates the strengths and weaknesses of an organization but also assists it to face the revolution of the market with proper planning and forward-thinking.

 

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