Characteristics And Importance of Strategic Management

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The options of proper management decisions vary with the amount of proper activity considered. Corporate-level decisions are frequently characterised by and the higher chances, cost, and potential profit, greater requirement for versatility, and extended period horizons. Such decisions include the option of the company, dividend policies, causes of lengthy-term financing, and priorities for growth.

Whereas, Functional level decisions implement the general strategy formulated in the corporate and business levels. They require action-oriented operational issues and therefore are relatively short-range and occasional risk.

Functional level decisions incur only modest costs simply because they rely on available sources. They are definitely adaptable to ongoing activities and for that reason could be implemented with minimal cooperation.

And, Business-level decisions help bridge decisions in the corporate and functional levels. Such decisions are less pricey, dangerous, and potentially lucrative than corporate-level decisions, but they’re more pricey, dangerous, and potentially lucrative than functional-level decisions.

Common business-level decisions include decisions on plant location, marketing segmentation, geographic coverage, and distribution channels.

Important characteristics of Proper decisions are

Non- programmed: – proper decisions are unique and rare. They cope with uncertain and non-routine problem situations because they are complex anyway.

Future-oriented: – Proper decisions are future-oriented. They’re made based on predictions and projections. They’re worried about the lengthy-term direction and scope from the organization.

Dynamic: – They’re dynamic anyway. They occur inside a altering atmosphere. Altering political, economic, socio-cultural, legal, and technological forces boost the complexity of proper decisions.

Top management-oriented: – Proper management decisions are created through the top control over the firm. The, philosophy, and expectations of top management greatly affect proper decisions. So, the proper decisions are top management-oriented.

Competitive Advantage: – Proper decisions assist in gaining competitive advantages on the market by trying to find unique sources and core competencies.

Proper fit: – Proper decisions match those activities and sources from the organization using the possibilities within the atmosphere.

Commitment: – proper decisions are lengthy-term objectives from the firm and involve the lengthy-term commitment of huge levels of sources.

Choice: – Proper decision is all about making choice from one of the proper alternatives. It’s a choice among the path of action for that lengthy-term future.

Need for Proper Management

Enhance business performance.

Effective and Optimum Utilisation of Sources

  • Reduce uncertainty.
  • Change management.
  • Participative management.
  • Meet competition.
  • Promotes Motivation and Innovation.
  • Help guide to Organisational Activities

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