Any business needs to have a well planned course of action which can be taken by the management of the business to make it move forward. These acts as the blue print plan for the business management to channel the business resources in the most appropriate way top ensure the achievement of the business goals and objectives (Kazmi, 2008). This brings about the development of the business strategic management plan. The business managers therefore takes into account the best way possible to harmonize the business goals, objectives, mission and vision with the available resources to help in the achievement of the business policies within a given period of time.
This modality is quiet different from other management functions in that it is not only future focused, but also tries to bring together all the relevant materials needed to achieve the policies of the organization. The strategic management is quiet different from the other management practices s it is the sole management practice which tries to bring together all the other management practices in the organization as it also involves the synchronization of the available business resources to the business (Kazmi, 2008).
Importance of strategic planning
The strategic planning process is very important in the coordination of the other management functions like the finance, marketing and production actions. Notably, it can be simply put that the strategic management is the focal point of all the management functions. Marketing department for example must forward their estimates in time for the earlier planning by the managers (Sekhar, 2010). The personnel as well as the production departmental heads must forward to the management their resource requirements to the management so that the same can be catered for in the planning of the company activities for the financial year.
More over, the business financiers and the financial management must plan their activities and their budget estimates in relation to the activities that the organization has made from the strategic plans which incorporate the business management practices and policy focus. Similarly, the accountant will be very much interested in the business polices to be focused on for the current financial year. As a result, they will have to get and secure the relevant policy objectives of the business made from the strategic management.
Differences between non profit organizations and profit organizations