Essentially, strategic management is of great importance in the sense that it helps organizations to gain far sightedness. Good corporate control requires an effective strategic management process and as such, such a planned management has the capability to bring about change in the business. According to Dobson, Starkey and Richards (2004), strategic management is founded on the fact that there is a realization of the objectives of the organizations along with sense and/or a plan to achieve these strategies (1). In line with this point, organizational strategy requires strategic management and as such, the strategic management should be an integral part of the strategy of the organization.
In the recent times, globalization of businesses has been witnessed and following this point, competitive advantage is realized as a result of strategic management. This is given to the reason that strategic management seeks to ensure that every process in the business is well planned, efficiently and effectively carried out. Following this point, the strategy should be able to ensure that the business enjoys competitive advantage both in the present and future. In fact, strategic management specializes on competitive advantage in the sense that it seeks to maximize on the profits while seeking to operate at low cost. Organizational structure affects the management and as such, strategic management seeks to establish whether the structure will work in the future on rather it needs restructuring. This is the reason why many businesses in the world are restructuring.
Another thing to note is that research and development is an area which requires strategic management skills in order to be able to identify the areas which need development and research within the business. Along with this point, strategic management on return seeks to examine whether the business has returns or not on investment. This can enhance far sightedness by means of one looking into the future and forecast opportunities for development. Human resources, problem solving and the management style equally need strategic management so as to be able to establish the employees contributing highly to the profitability of the business.
The management should as well solve problems strategically by seeking solution for them currently and as such seek solutions for anticipated problems in the future. Needless to say, the style of management should be strategically employed so as to realize the objectives of the business with efficacy while taking care of such problems in the future. Kreitner (2009) asserts that strategic management ensures an exceptional fit between an organization and its environment (198). In fact, strategic management helps one to see far beyond the present and as such one can plan strategically on how to face the challenges forecasted. Along with this point, strategic management makes it possible for the realization of the rationale of the top level decisions, strategy formulation, and implementation and control altogether.
Strategic far sightedness can best be developed by formulating a grand strategy, formulating the strategy, implementing the strategic plans and ensuring strategic control (Kreitner 198). Such an approach will equip a manager with the skills to see far and thus make plans to solve future problems. Managers-in-training may develop far sighted strategic skills by examining the objectives of the organization and as such seek to see its fit with the environment. They should as well, develop an ability to look ahead and spot key organization- environment interdependencies (Kreitner 198). As well, managers-in training should have the ability to forecast and develop Synergy in relation to market, cost, and technology and management altogether (Kreitner 182).