Final answer:
Strategic management brings multiple benefits including long-term financial stability, the ability to attract external investment due to increased transparency, competitive advantages across various sectors, and a bolstered capacity to engage in global trade dynamics.
Step-by-step explanation:
The benefits of strategic management are multifaceted, impacting various aspects of an organization's development and adaptability. Firstly, effective strategic management considers conservation costs and broader impact factors, resulting in not only enhanced biological and environmental considerations but also long-term financial stability. This aspect underlines that success can be more sustainable when strategies incorporate a wider range of variables, such as those emphasized in Naidoo et al. (2006).
Moreover, strategic planning provides a competitive advantage, relevant in all sectors, including the military. Military bodies leveraging strategic superiority can anticipate and navigate global threats effectively. Similarly, in the business realm, as a firm's strategy matures indicating potential profitability, its transparency increases. This transparency about products, revenues, costs, and profits attracts external investment from bondholders and shareholders who may not know the company's management personally. Thus, strategic management facilitates access to financial capital, vital for growth and expansion.
Lastly, strategic management responds to the dynamics of global trade. International agreements and economic policies informed by strategic thinking can mitigate domestic protectionism, increase consumer choice, and enable businesses to thrive in competitive environments, ultimately leading to national economic gains. In short, strategic management enhances profitability, attracts investment, improves external relations, and contributes to overall sustainable business growth.