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Advantages And Disadvantages Of Strategic Management

Advantages Of Strategic Management

Strategic business management should lead to everybody working towards corporate goals in a way that reflects the firm’s ethos and culture i.e. a uniform strategy. A uniform strategy should stop departments doing things that provide short term benefits for them but hinder long term growth for everybody else.

Strategic business management should encourage firms to assess

And draw up corporate strategy to reflect the assessment. Effective strategic business management makes efficient use of the firm’s resources and the environment in which the firm operates.

Disadvantages Of Strategic Management

In larger organisations strategic business management may slow things down, increase paperwork and lead to unnecessary procedures. The number of decisions requiring approval from senior management may also increase.

Corporate strategy which benefits the organisation as a whole, may not benefit a business unit or functions within a business unit e.g. production, marketing, finance. Corporate and individual business unit needs will need to be balanced carefully.


Effective strategic management needs the support of everybody working in the firm. If business strategy is not SMART then people will find it difficult to follow. Strategic business management needs to be flexible enough to respond to changes in the market place and include contingency plans. Otherwise strategic plans will not be followed or quickly become wrong for the market place in which the firm operates.



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