Management Policy and Strategy

Unit 1 Learning Journal Kaplan University MT460: Management Policy and Strategy Professor Wendy Finlay November 12, 2012 Strategic management gives a business the opportunity to produce the best strategy to be more proactive in creating its future by influencing activities to control the direction of the company. The benefits of strategic management is that it helps provide a framework for the organization because the business is able form better strategies in areas of research, development, marketing, sales and financial aspects. Businesses are able to ensure that these practices are strategically managed to mprove both productivity and revenues in the company so that the company is successful. Due to this process, business can benefit from improvements in sales, profits, and productivity. Other benefits of strategic management include awareness of strengths, weaknesses, opportunities and threats for opportunity of improvement were necessary. In addition, the company benefits because they are able to develop advancement in understanding strategies of the competitor, reduce resistance to change and enhance in problem prevention capabilities. Overall, the most important enefit of strategic management is to assist the company to form better strategies by utilizing a process that has a more systematic and logical approach to strategic choices. There are many risk associated with strategic management due to the unforeseen circumstances that can occur when processes and procedures are implemented in the company. Managing strategically in business can be both difficult and messy; in addition it can require a considerable amount of work. It also can place a new set of demands on employees that they were not expecting o oversee in their daily activities this can impact their daily responsibilities. Due to these aspects, some of the risks in strategic management are that it can be very expensive and time consuming to plan. Strategic management is also risky because it can expose conflicts within the company in the areas of decision making and can cause current operational issues because long term planning decisions. Strategic management has many risks as well as the fear of failure, once a completed plan is established by the company it can limit both the choices and activities of the business in the future.