7. the principal benefit of strategic management has
been to help organizations formulate better
strategies through the use of a more systematic,
logical, and rational approach to strategic choice
11. It allows for identification, prioritization, and
exploitation of opportunities.
It provides an objective view of management
problems.
12. It represents a framework for improved
coordination and control of activities.
It minimizes the effects of adverse conditions and
changes.
13. Why Some Firms Do No Strategic
Planning
1. Lack of knowledge in strategic planning
2. Poor reward structures
3. Waste of time
4. Too expensive
5. Laziness
14. There are no Opportunity of training in
strategic planning so people have very
poor knowledge on less experiences in
strategic planning.
15. Poor reward structures
When an organization assumes success
it often fails to reward success .when
failure occurs then the firm may
punish.
16. Some firms belief that planning is not a
productive activity so they thought strategy
planning means waste of time
17. Too Expensive
• An organization don’t has budget for
strategic planning as the assume it as
an expensive activity
18. People provide less emphasis in
strategic planning because its not
involved in productive activity.
19. Why firms do no strategic
planning
Fear of failure
Overconfidence
Prior bad experience
Self-interest
Fear of the unknown
20. Fear of failure
By not taking action, there is little risk of
failure unless a problem is urgent and
pressing.
22. Prior bad experience
People may have had a previous bad
experience with planning, that is, cases
in which plans have been long,
inflexible, cumbersome or impractical.
23. When some one has achieved status, privilege
or self esteem through effectively using an old
systems, he or she often sees a plan as a threat.
24. People may be uncertain of their abilities to
learn new skills, of their aptitude with new
systems, or of their ability to take on new roles.
25. 1. Intuitive Decision making
2. Strategic Plan only satisfy accreditation
requirement
3. Treating strategic plan as an event, rather
than process
4. Fail to communicate the plan to employees
5. Not allowing enough time
26. Top managers make many intuitive decision that
conflict with the formal plan. It is not guiding the
actions of the staff.
27. Strategic planning only satisfy accreditation and
regulatory requirements instead of adding value
to the firm’s processes. It does not gather
information necessary to strategy thinking.
28. Some managers think strategic plan as an annual
static event. They are unable to treat it as an
changeable process.
29. Fail to communicate the plan to
employees
Some employees in the organization are
unconscious about what they are working for and
they also do not know what the strategic plan is ?
30. Some management teams want to get their
planning process just as quickly as possible.
They run through each of the process steps as
quickly as they can.