Benefits and Disadvantages of Strategic Management

CONTENTS INTRODUCTION 3 GREATEST ADVANTAGES OF STRATEGIC MANAGEMENT 4 GREATEST SHORTCOMING OF STRATEGIC MANAGEMENT 5 RESPONSE TO MILTON FRIEDMAN’S ARGUMENT ON SOCIAL RESPONSIBILITES OF BUSINESS 6 CONCLUSION 8 BIBLIOGRAPHY 9 REFLECTION TEMPLATE 10 INTRODUCTION Strategic management is essential for organisations. There are a few areas that I will be analysing to highlight their effects to an organisation. Firstly I wish to discuss decision making, which I believe to be, the greatest advantage of strategic management. The decision making element provides an organisation a clearly defined framework to work within, however still allowing for flexibility to achieve its strategic direction. This strategic element allows†¦show more content†¦Greatest Shortcoming of Strategic Management The greatest shortcoming of strategic management in my opinion is the implementation of strategy. This is the single most common failure of great strategies. It is documented that most managers believe that the difficulty in implementing strategy surpasses that of formulating it. The study found that 73 percent of managers believed that implementation is more difficult than formulation. â€Å"Though remarkable progress has been made in the field of strategic management, the problem of strategy implementation failure still persists. A report by Deloitte and Touche (1992,) shows that eight out of ten companies fail to deploy their strategies effectively.† (Martin Dandira) Examples of barriers that impede on the success of implementation are: Strategy formulation: â€Å"Most cases where strategies fail, implementers did not have an input at the formulation stage.† (Martin Dandira) An example of this would be a production manager was not involved in the introduction of a new brand of Whiskey. Environmental uncertainty, â€Å"The speed of change and events in the industry makes some strategy that was probably sound during its conception, a pointless activity when a major change happens.† (Yii Teang Tan, 2004) Organisational culture, A good example is the case study of Air New Zealand. One of the employeesShow MoreRelatedCompetitive Advantage1196 Words   |  5 Pagesbuyers, the bargaining power of suppliers, and the rivalry among existing competitors (Pfeffer, J., 2005). Three methods for maintaining competitive advantage that will address these forces are effective strategic management, the effective management of people, and the effective management of research and development. Dr. Johannes Snyman conducted a study of the trucking industry within the United States. 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