Strategic Management and Entrepreneurship
Strategic management involves identification and description of various strategies that a manager or a business owner can employ to gain competitive advantage and achieve a better organizational or business performance. A company that works is the one whose profit margin is relatively above the average profitability of competing businesses. The concept of strategic management is important for entrepreneurs since it helps them to evaluate and control their business. It also helps them to assess their existing and potential competitors and design strategies to handle them effectively (Jenkins & Williamson, 2015). By applying the concept of strategic management, entrepreneurs can reevaluate the business or organizational approaches to confirm whether they are successful or should be replaced. One of the primary roles of strategic management is to incorporate various business functional areas and ensure that they are harmonized (Jenkins & Williamson, 2015). When an entrepreneur applies the approach, it becomes easy for them to keep an eye on the business goals and ensure the overall success of the company.
An entrepreneur can have a number of benefits when he or she understands and employs a strategic management process in his or her business. First, this strategy helps in developing a sense of direction by offering a foundation, from which a business can grow, evaluate its success, and create boundaries for effective decision-making. Second, strategic management makes a business more durable by creating a strong foundation to the business to the extent that it cannot collapse even when there is turbulence in world markets (Jenkins & Williamson, 2015). This approach is also important in increasing market share and profitability. It helps the entrepreneur to have valuable insights on market trends as well as product and services that can affect the success of the business. Thus, it allows turning all sales and marketing efforts into desirable business outcome, leading to an increase in profitability and market share (Jenkins & Williamson, 2015). Along with all these advantages strategic management helps in increasing operational efficiency. Applying the strategy, an entrepreneur can guarantee an efficient and productive business environment to increase their profit.
Jenkins, W., & Williamson, D. (2015). Strategic management and business analysis. Routledge.