MSG Team's other articles

12482 The Relationship between the Board of Directors and the Management

The relationship between the board of directors and the management cannot be described as just being that of a relationship between an employee and his or her manager. Though the board oversees the decisions taken by the management and ratifies them along with acting as the final arbiters of the strategic direction and focus that […]

11230 Self-Checkout Apps: The Future of Retail

The business of retail has always been evolving with technology. Companies which have been at the helm of technology have dominated the retail sector. Consider the case of Wal-Mart which reached new heights in retail thanks to pioneering the RFID based inventory system. Similarly, Amazon has been using its technological advancement to give tough competition […]

9384 The Fortune at the Bottom of the Pyramid: The Business Opportunity Description

What is the Bottom of the Pyramid and its Implications for Marketers Marketers around the world are discovering that there is a fortune to be made by targeting their efforts at the Bottom Billion or those who are near the lower end of the income pyramid. This means that they can market specific products and […]

11472 SWOT Analysis of Starbucks

Starbucks is a globally recognized coffee and beverages brand that has rapidly made strides into all major markets of the world. The company has a lead over its nearest competitors including Barista and other emerging competitors. Indeed, Starbucks is so well known throughout the western hemisphere that it has become a household name for coffee. […]

12289 Advertisement Planning on Social Web

Internet age and the social web is redefining marketing. Online marketing as well as online advertising and brand promotions are done differently from the traditional ways. When you consider the traditional way of marketing and building customer loyalty, you will find that the customer’s positive experience of the product or service helps build loyalty. It […]

Search with tags

  • No tags available.

Many firms do not engage in strategic planning and some firms do strategic planning that is poor and ill conceived. Some of the reasons for this sorry state of affairs in these firms are listed below:

  1. The first and foremost reason for poor strategy is the lack of experience in strategic management which is due to the paucity of managers and executives with experience and the presence of those who do not understand strategic management.

  2. The next reason has to do with the poor reward structure in place where success goes unrewarded and failures are punished. Because of this “double whammy” of no recognition when things have gone right and blame game when things go wrong, managers are reluctant to engage in strategic management.

  3. Because an organization is always firefighting which means that is so embroiled in its internal problems, the top management does not have the time or the energy to engage in strategic management. This is often the case with many firms where the lack of coherence and control in organizational processes means that most of the time is spent on tackling problems rather than preempting problems or solving problems.

  4. Some firms view strategic planning and strategic management as a waste of time since they are under the impression that they can handle the longer-term imperatives by doing things that they have always done in a particular manner. This is the case with firms that have been in business for generations where the new leaders often think that “if it is not broke, do not fix it”. This mindset precludes them from approaching the future in a proactive manner instead of a reactive manner.

  5. Continuing in the same vein, many firms, especially those that have been successful see no point in formulating newer strategies since their position is comfortable and they are content with success. Success breeds arrogance as the case of Nokia, which went from market leader to the bottom in a few years time reminds us.

  6. With experience, many managers think that they can weather any storm because they “have been there, done that”. However, this attitude is counterproductive as planning for eventualities is necessary and formal models of strategy have to be drawn up since experience is not always the best guide. This is especially the case with the modern era where the advent of the digital age has changed the rules of the game.

  7. Perhaps one of the most important reasons why firms do not engage in strategic management is that they fear the “unknown”. What they forget is that precisely because of the unknown and the unpredictable; they have to plan in advance.

    Further, the managers might be uncertain of their abilities to learn new skills, of their aptitude with new systems, and their ability to take on new roles. This happens when organizational arteries are clogged because of inertia and a general sense of laziness and ostrich like mindsets.

  8. Finally, the other important reason why firms and the managers within them do not engage in strategic management is the lack of consensus and differing ideas as to what a good strategy ought to be.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles

Cutting Costs Strategically

MSG Team

Corporate Governance – Definition, Scope and Benefits

MSG Team

Strategic Management: Core Competency Theory of Strategy

MSG Team