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TOPIC 2
Strategic Management in Public Sector, Financial Benefit
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Financial Benefit
- Businesses using strategic-management concepts show significant improvement in sales, profitability, and productivity compared to firms without systematic planning activities
- High-performing firms seem to make more informed decisions with good anticipation of both short- and long-term consequences
Nonfinancial Benefit
- It allows for identification, prioritization, and exploitation of opportunities
- It provides an objective view of management problems
- It represents a framework for improved coordination and control of activities
- It minimizes the effects of adverse conditions and changes
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