Why Is Strategy Important?
Strategy is important to make decisions, conduct operations, attract customers, compete successfully and attain organization's goals. Creating a strategic plan is crucial regardless of the size of the organization. A good strategy helps yo create a foundation for ensuring growth and success.
A strategy helps an organization to understand their immediate environment and what they need to succeed. It helps a company address its weakness and identify any faults within its organization. Strategy helps in formulating policies and establishing a good focus for performance and productivity.
Having a flexible strategy is vital in this ever-changing environment. Organizations need to understand that what made them successful yesterday cannot bring in success tomorrow. Therefore, with a flexible strategy, organizations can adapt quickly to changes within their environment and plan accordingly. Knowing how the organization will respond to social, political and technological changes provides opportunities for growth and profitability.
Understanding the main goals or objectives of an organization helps employees work productively to ensure success. Clearly defined roles and responsibilities provide an organization's staff a way to function at its level best. Without a focus, many employees will fail to understand what to prioritize. As a result, this is sure trouble to any organization and poses threats to its growth.