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Exploring Strategic Thinking And Its Benefits

Exploring Strategic Thinking and Its BenefitsThe need for managers to be able to think critically (strategically) was stressed in the overview. While strategic management incorporates major changes in direction, such as diversification and growth overseas, it also involves smaller changes or lower level changes in individual products and services. Decisions by middle-line managers in their own functional areas has a strategic impact and contributes to strategic change.
Companies succeed if their strategies are appropriate for their situation, feasible with respect to resources, skills, expertise, and desirable to their stakeholders (internal and external influences). Companies fail when their strategies are not appropriate, feasible, or desirable. To succeed long term, companies must out-perform their competitors in a dynamic, often turbulent, environment. They must find suitable ways for creating/adding value and satisfying their customers. A culture of cooperation, willingness to learn from and adapt to change, is essential. There is no one best method to use to gain a strategic advantage, but rather a range of theories and concepts are available, which must be adapted judiciously to one�s own environment.Everyone who can make an influential decision needs to have some basic understanding of strategic concepts. Without this understanding, people fail to appreciate the impact of their decisions on the company and other people. The major goals are: establishing a clear direction for the company creation of a strong competitive position ensure continued innovation ensure responsiveness to pressures for change create strategic awareness and competencies The lackluster performance of the British economy in the 1960�s and 1970�s has been attributed to generally hostile views toward the complex and elaborate strategic planning systems that were in vogue. Companies that adapt strategic thinking: identify opportunities more effectively than their competitors segment...