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Why is Strategic Thinking important?

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While it may be tempting to think that Strategic Thinking is just for big corporations, the truth is that every organization can benefit from this type of analysis. Not only does it help you to identify wrong assumptions, target unproductive work habits and become aware of blind spots, it also challenges you to capitalize on your strengths and determine the opportunities available for your company.

Some of the benefits of Strategic Thinking include:

Insight into where your business can grow. This begins by understanding where your business profit center lies. If you make your money from developing a certain type of �widget,� you need to know everything about that widget. Equally important, you can determine the areas of your company where you aren�t growing. As the old saying goes, �If you don�t know it�s broken, you can�t fix it.�
The opportunity to sharpen your advertising to give you a competitive advantage in the marketplace. In order to make a push in this area, be sure you review the data and become familiar with the analytical side of your company. Which segment is truly performing best? It all boils down to good measurement tools so you can maximize returns on marketing ROI.
Wisdom and foresight to see looming threats and react proactively. Just as every homeowner needs homeowner�s insurance, every business needs the assurance of contingency plans. For example, what is the optimum liquidity for a manufacturer? What plans would a cruise line have in place in case of a terrorist attack? How should an airline react to the threat of hijackings? Businesses that think progressively and have preplanned courses of action are more sure-footed when it comes to regaining normal business operations. In short, they are better prepared to protect shareholder wealth.

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