Final answer:
Strategic planning benefits firm's managers primarily by establishing goals to be accomplished, providing direction and measurable objectives. It also creates an environment where external investors are more willing to provide financial capital, seeing the firm's transparency and potential for profitability.
Step-by-step explanation:
Strategic planning is a critical process that guides a firm in setting priorities, focusing energy and resources, and ensuring that employees and other stakeholders are working toward common goals. One of the key benefits of strategic planning is that it helps firm's managers by establishing goals to be accomplished. This includes formatulating a clear direction for the organization, setting measurable objectives, and outlining the steps necessary to achieve these goals. Throughout this process, managers gain clarity on the firm's vision, which can inform decision-making and operational activities aiming to enhance performance and growth.
As a firm matures, the individual relationships with managers become less important as information about the company's products, revenues, costs, and profits becomes more accessible. This transparency facilitates investment from external stakeholders, such as bondholders and shareholders, who might not have a personal acquaintance with the management team but recognize the firm's potential for profitability. Financial capital becomes easier to acquire, which is a strong testament to the effectiveness of a well-executed strategic plan.