Importance of Strategic Management.
Strategic management is the management of a business’s resources to successfully achieve its goals and objectives. It’s an action plan to ensure that performance targets are met and that the business continues to grow. Strategic management provides overall direction by developing plans and policies to achieve objectives and allocating resources to implement the plans. Ultimately, strategic management exists for businesses to gain a competitive edge over their competitors.
Importance of strategic management helps an organization move past short-term thinking and strategies the future of the company
Strategic management helps business's clear understanding of its mission; its vision for where it wants to be in the future; and the values that will guide its actions. Strategic planning also includes the planning of strategic decisions, activities and resource allocation needed to achieve those goals
Its Contribution to Family Businesses Globally, Africa region and Kenya.
One of the main findings from 2016 survey (PwC) in Kenya and globally was that mid-term strategic planning (over a 3-5-year time frame) is often one of the biggest missing pieces of the puzzle for family businesses This year, we found that survey respondents fall into three groups:
The first group, making up 11% (21% global) of the total respondents in Kenya, has no strategic plan at all.
The second group, making up 41% (30% global) of the total respondents in Kenya have a plan in mind, but it is not far advanced; it isn’t explicit about costs or methods for achieving the business’ goals. Together, these first two groups represent a little more than half of the companies surveyed, and, as a whole, they are more likely to fall behind over time.
The third group, the remaining 48% (49% global) of respondents in Kenya, are those with a cost, Exhibit 4: Behaviors of family businesses with 10%+ growth formalized and documented midterm strategic plan.