Benefits Of Strategic Management Analysis Essay
There are 10 benefits stated by Greenley, which are (1) it allows for identification, prioritization, and exploitation of opportunities. (2)It provides an objective view of management problems. (3) It represents a framework for improved coordination and control of activities. (4) It allows major decisions to better support established objectives. (5) It allows more effective allocation of time and resources to identified opportunities. (6) It allows fewer resources and less time to be devoted to correcting erroneous or ad hoc decisions. 7) It creates a framework for internal communication among personnel.
And (8) It provides a basis for clarifying individual responsibilities. (9) It provides a cooperative, integrated, and enthusiastic approach to tackling problems and opportunities. (10) It gives a degree of discipline and formality to the management of a business. According to Greenley, strategic management provides a cooperative, integrated and enthusiastic approach to tackling problems and opportunities.
Strategic management enables an organization to be proactive, instead of companies just responding to threats in their business environment. Followed by commitment, understanding is the most important benefit of strategic management. Firms with planning systems more closely resembling strategic-management theory generally exhibit superior long-term financial performance relative to their industry. Low-performing firms typically underestimate their competitor’s strengths and overestimate their own firm’s strengths.
McDonalds is a one of the successful decentralized firm. With their franchises based in several countries, decentralization allows lower management to have the greatest level of autonomy. For example, when the demand within local area becomes less, the headquarters of McDonalds allow the management on site to make decision and rearrange their local business modal to achieve the demand. Decentralization is being more applicable to large organizations that have different cultures, languages and business environments.