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There are a number of benefits of strategic management. Now strategic management has become the necessity of the organization to become successful in the competitive world. There are many potential benefits that are associated with the strategic management.
Marketing is made up of two totally different but undoubtedly complementary aspects. On the one hand, we have a part focused on the medium and long term, such as strategic marketing. On the other hand we have a tactical part focused on the short term and create marketing actions, which is the operational marketing.
It is also known as internal strategic management audit. So it is a process in which the information about key internal factors is gathered and compiled. Specifically in order to ascertain the strengths and weaknesses of the organization. Moreover in the functional areas of marketing, management, finance. Along with production or operations and research or development etc. This internal audit is conducted for the assistance of the organization to positively utilize its strengths for success. Although while improving its identified weaknesses.
When a product is manufactured in such a way that it is perceived as unique by the customers. Then such product is managed through differentiation strategies. Some unique features or benefits are added to the product in order to make it differentiated. These differentiating features and benefits highlight the certain product. Specifically among a pool of different products. The customers consider that product as a unique one that will provide superior value to them. It is clear that the customers are interested in such a differentiated product. Because they considered it as unequaled and unrivaled. This results in reduction in the price elasticity of demand of that product.
The identification and evaluation of those trends and events that are beyond the control of an organization is called external strategic management audit or external audit. E.g. population shift to sunbelt, increased foreign competition, information technology and computer revolution etc. As compared to Internal Audit, external audit is a bit difficult to do as it covers a lot of factors to analyze. The external audit points out the important opportunities and threats that come in front of the organization. Therefore the management of the organization should develop proper strategies to avail those opportunities and to reduce or avoid the effects of threats.
