Advantages and Disadvantages of Strategic Planning
Strategic Planning - Advantages and Disadvantages of Strategic Planning Advantages and Disadvantages of Strategic Planning
Students must note that not all strategic planning will be the same, rather it will vary between organizations. Different organizations will approach the process with different degrees of sophistication, thoroughness and commitment. Some organizations due to resource limitations may be unable to follow the formal process of strategy formulation. Other organizations may lack the necessary managerial commitment to implement a strategic plan. Managers who utilize the concepts of strategy development informally without implementing a formal process could still earn significant benefits from it. Advantages:
• It provides consistent guidelines for the organizations activities. • The planning process helps managers anticipate problems before they arise and to deal with them before they become too severe. • It helps managers make decisions as the careful analysis provided by strategic planning gives managers more of the information they need to make decisions. • It minimises the chance of mistakes and unpleasant surprises, because goals, objectives and strategies are subjected to careful scrutiny and analysis. Example:-
During 1960's and 1970's the IBM Selectric typewriter series was very popular around the world. Over the course of the decades electric typewriters have been replaced by personal computers, printers, and word processing software .IBM select strategic planning and now you can see the reputation of IBM and the business of them in the market.
* Company will lack in planning for future business.
* Loose focus on development
* No supporting data will be available to make quick decisions. * For future business the outcome of money will be less, because we are not going step by step with the technology.
Before 1860 there...
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