Potential Benefits and Limitations of Strategic Management

2705 WordsDec 12, 201011 Pages
Introduction Business always is subject to factors that affect the firm’s function as a whole may it be profit or non-profit oriented. These factors are the ones attributed for the both success and failure of a business. For the profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit. In this manner, the management of that particular organisation should be guided by strategic management principle to be able to attain its business goal. As mentioned, “Strategic management can contribute significantly to organisational performance; however, its practice can have limitations.” First and foremost, the purpose of this paper is to…show more content…
The organisation needs to be more than just competitive here-and-now. The competition for industry leadership is just as crucial to firms as is the competition for developing the right competencies in the right time. Thus, strategic management is also about integrating time horizons and activities related to all three kinds of competition. This often means finding those issues that should be kept invariant for the time being and adjusting other activities and issues accordingly. Although strategic management encompasses many advantages and benefits for the organisation, strategic management has also some restrictions or limitations. One of the limitations of strategic management is it may not function well enough for the organisation without having a good and effective leader to initiate such approach. It is known that strategic management is a concept of determining and executing the most effective business approach, however, if the leader of such company do not have what it takes for implementing effectively the strategic plan formulated, then strategic management will not be successful as expected. Strategic management is a process used in an organisation so as to develop essential goals and resources. It is a combination of impure, mixed and interactive process loaded with difficulty, both politically and intellectually. Strategic management and human resource are very much related to each other. Through the combined efforts of these two
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