Discuss in Scholarly Detail the Benefits and Risks Associated with Strategic Management Essay

Strategic management allows fundamental laws to be more proactive than reactive and to initiate and influence internal and remote activities to gain control over its own destiny. It allows executives at all levels to figure in analyzing a firms current practices in ramble to formulate and implement shorter and longer term strategies for growth and development. Historically, this participative approach has produced mend results. Another benefit of strategic management has been to formulate better strategies done the use of the more systematic and proven methodologies. Organizations of all sizes have know and realized the benefits of strategic management. While financial benefits include increased sales, favorableness and productivity, non-Financial benefits include, better understanding of competitors strategies and reduced resistance to castrate across the organization.Strategic planning with risk awareness has always been difficult. fit in to Rick Funston & Bob Ruprecht (h ttp//bpmmag.net), Success demands excellent risk management as a core competency. Risk intelligence enables an organization to respond to promptly changing circumstances with greater agility and resilience. Risk handled well becomes a source of competitive advantage handled poorly it can severely throttle a companys prospects. The greater the risk, the less complacent organization can afford to be.More often executives who are responsible for strategic planning lack an integrated view of risk due to the unavailability of business intelligence when needed. Many organizations fail to consider a eye socket of time horizons when incorporating risk considerations into the planning process resulting in uncertainty big money the chain-of-command with each expanding time horizon. Unavailability of an integrated decision-support framework that links mention performance metrics with business and risk intelligence multiplies the risks exponentially.