Benefits of strategic management
Strategic management consists of strategic planning, enactment and control of the strategy of an association. In the recent past, many modern organizations have been engaging in strategic management (Hambrick, 2007). This is because strategic management ensures that the organisation achieves its desired performance level. Some of these benefits of strategic management include the following:
i. It sets the strategic direction for the organisation- these directions define the anticipated level of performance (Hambrick, 2007).
ii. Helps to understand the changing environment- strategic management foresees the future changes that will take place thus helping the firm to be preemptive.
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iii. It focuses on critical aspects of the firm- this is done by identifying the perilous factors that are purposefully important to the firm (Hambrick, 2007).
iv. Strategic management leads to better performance and, therefore, ensuring that the firm performs very well while also generating (Hambrick, 2007).
Types of health care institutions may benefit most from strategic management
Usually, the Governing Board of health care institutions is responsible for that the clinic’s planning process. Therefore, a strategic planning process need be established to position the health institutions in a hastily changing environment (Jennings 2000). Strategic management is also the process of defining health system future needs and how they can be achieved. However, strategic management is different from much other operational management. This is because many operational planning mainly necessitate the development of yearly plans and objectives (Jennings 2000). There are many types of health care institutions that can benefit from strategic management. They include the following:
i. Adult Care Homes
ii. Housing Homes for the Aged
iii. Assisted-Care Facilities
iv. Birthing Centers
v. HIV comprehensive Living Facilities
vi. Child Care Centers
vii. Outpatient Diagnostic Centers
References
Hambrick, D. C. (2007). "What is strategic management,? Inductive derivation of a definition of the field" (PDF). Strategic Management Journal 28 (9): 935-955. doi:10.1002/smj.615. Retrieved October 28, 2012.
Jennings, M. C. (2000). Health Care Strategy for Uncertain Times, Chicago, IL: American Hospital Association Publishing, Inc.
