10 - Problems With Strategy Flashcards
What Are The Difficulties Of Strategic Decision Making & Implementing Strategy?
(5 Points)
~ Unforeseen circumstances.
~ PESTLE factors, are hard to predict.
~ Lack of knowledge and expertise.
~ Poor leadership, communication and management of resources.
~ Resistance to change.
Describe Planned Strategy
(3 Points)
~ Decided in advance, providing a clear sense of direction.
~ Can be easily communicated.
~ Rigid and less flexible strategy, based on the corporate objectives.
What Are The Issues With Planned Strategy?
(3 Points)
~ Costly and time consuming.
~ Gradually become out of date.
~ Managers can be too busy to fully oversee everything.
Describe Emergent Strategy
(3 Points)
~ Comes from the interaction, with the external environment.
~ Develops overtime, with up to date information.
~ Flexible and adaptable, can avoid strategic drift.
What Are The Issues With Emergent Strategy?
(2 Points)
~ Can cause firms to be ill prepared for issues, no clear end goal
~ Rivals may have used a planned strategy, meaning it may be hard to compete with them.
Describe Strategic Drift
(2 Points)
~ Occurs when a strategy fails to adapt to changes in the internal or external environment, making it no longer fit for purpose.
~ Likely to be caused by changes in PESTLE.
What Are The Reasons For Strategic Drift?
(2 Points)
~ Failure to keep up with changes in the external environment.
~ Failing to respond to changes in the internal environment.
What Is Contingency Planning?
Process, by which organisations try to prepare for unexpected or unwanted events.
Why Would Businesses Want To Use A Contingency Plan?
(4 Points)
~ Reduced damage and panic associated with the unexpected event, if it is handed poorly can lead to increased costs.
~ Protects reputation.
~ Speeds up recovery processes.
~ Informs staff training.
What Are Some Things That Need To Be Considered When Using A Contingency Plan?
(3 Points)
~ Impossible to create a plan for everything.
~ Vital to maintain, update and train employees to the contingency plan, so it works.
~ Costs vs benefits, must be considered.
What Is Strategic Planning?
The planning to enable an organisation to achieve its long term goals.
Why Is Strategic Planning Useful For A Business?
(3 Points)
~ Ensures managers, employees and shareholders are aware of the organisations goals and how it will achieve them.
~ Ensures managers are well informed about the decisions the organisation makes, to make effective decisions.
~ Promotes foresight, reducing possible risks in the future and improves outcomes.
When Is Strategic Planning Not Useful For A Business?
(4 Points)
~ Too time consuming and lacks flexibility.
~ Needs to monitored and reviewed.
~ Requires resources.
~ Cannot predict for the future.
