Significance and Challenges of Strategic Management in Organizations

Running head: Strategic management
Strategic management

Strategic management
Table of Contents
Introduction...........................................................................................................................................3
1. Strategic management in undertaken by the organizations................................................................3
A. Significance of strategic management...........................................................................................3
b.Key Tasks of Strategic Management..............................................................................................4
C.Challenges of Strategic Management in the current environment..................................................5
2.The strategic management discipline in life........................................................................................6
The strategic management discipline in Businesses...........................................................................6
3. Strategic Management Disciplines in organization............................................................................6
4. Learning from strategic management in the future............................................................................7
Conclusion.............................................................................................................................................7
References.............................................................................................................................................8
2

Strategic management
Introduction
The main purpose of this task is to outline the significance of the strategic management in the
organizations. The paper also explains the challenges and needs of the strategic management
and along with this; it describes that how strategic discipline helps us in understanding the
life experience and business.
1. Strategic management in undertaken by the organizations
A. Significance of strategic management
Strategic management refers to the development and implementation of plans which are
useful in conducting business operations effectively. To incorporate a proper strategy for the
business the company needs to identify its mission and vision. In this assignment the
Wesfarmers has been chosen to understand the need of strategic management (Akram et al,
2011).
Main Reason for Need of Strategic Management for Wesfarmers:
1. Increasing rate of change: The environment in which business operates is changing
very fast and to become up-to-date the company need to make a strategic planning.
Without a proper strategy the company cannot survive for long time in the market.
The effective strategy increases the profits of the company in long run.
2. Motivate employees: To motivate employees the Wesfarmers need to design a well-
planned strategy which includes reward and promotion plans, to inspire employees to
work hard and work as per their potential (David, 2011).
3. Decision Making: setting goal and objectives of the business is very important and for
that tough decisions are made by management. Decisions are very critical part of
strategy management as the whole working of the company depends on it.
4. Increasing profits: The main objective of every business is to earn maximum profits.
And to increase profits the company wants a well-planned strategy (Stead and Stead,
2014).
5. Others:
 For marketing opportunities
 To avail Distribution Channel
3