Importance of Strategic Management in Public and Non-Profit Organizations

Importance of Strategic Management 0
Strategic Management
Relevance in public and non-profit
organizations
Student’s Name
11/24/2018

Importance of Strategic Management 1
Strategic management is the process that aims to prepare the organizations for opportunities
in the future and analyze the risk and market trends. It ensures that the goals of the firm are
set, and it outlines the primary issues in achieving objectives, the time and the resources
required in attaining goals of the organization. However, strategic management is the essence
of an absolute administration plan (Business Jargons, 2018).
In the light of growing complexity in the business environment strategic management is
required at all the levels of the organization as it provides the direction to the activities and
effectively contributes to sustaining its competitive advantage. Such increasing demand of the
competitive environment develops the need for the organization to rethink and adapt the
strategies and approaches. Strategic management is requisite to both the public as well as the
non-profit organization as it helps the organization to analyze the internal and the external
threats to its business and compete in the dynamic environment. It enables the organizations
to realize its strengths, weakness and trace a way forward. Analysis of swot of the
organization helps the companies to invest more in their valued competencies and capture the
larger market share. The process of strategic management focuses on reorienting corporate
objectives and prioritizes the objectives, which provides efficiency in operations and leads to
the attainment of customer satisfaction (Business and Management, 2018).
Strategic management is important to the non-profits organization as it unites the employees
towards achieving the objectives of the organization and enhances the decision-making
process, which leads to the development of coordination among the employees. It provides
the transformation in existing strategies to overcome the challenges of downsizing and
financial crisis and develops the ways to evaluate and control the actions of the firms
(Keegan, 2014).