7.2 Business Model

One terms used in conjunction with strategic management and strategies is business model, which is a strategic design for how a company intends to profit from its strategies, work processes and work activities.

A company's businesses model focuses on two things:

Whether customer will value what the company is providing.

Whether the company can make any money doing that.

Strategic management is important because:

It can make a difference in how well an organization performs.

It helps managers examine relevant factors in deciding what actions to take and therefore make them better cope with uncertain environments.

It helps diverse divisions, departments, functions and work activities to become coordinated and focused on achieving organizations goals.

It is involved in many decisions that managers make.