Final answer:
Strategic planning is important for managers as it provides a clear direction for the company, informs stakeholders about the company's financial trajectory, and helps to attract external investment without the need for personal relationships with management
Step-by-step explanation:
Strategic planning is crucial for managers as it outlines a company's direction and anticipated financial performance, making the particulars of individual managers' plans less critical to stakeholders. With a robust strategy, information about products, revenues, costs, and profits becomes widely accessible, enticing outside investors like bondholders and shareholders to provide financial capital without a personal acquaintance with the management.
By demonstrating a path to profits, strategic planning ensures that all levels of management and investors are on the same page, which is essential for larger firms where personal knowledge of managers is impractical. Moreover, just as in a chess game or in politics, where strategies are devised considering opponents' moves, in business, managers must forecast competitors' actions and market responses to succeed. This requires comprehensive and strategic thinking to steer the company towards its goals effectively.