advantages and dis advantages of strategy mgmt

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BHARAT COLLEGE OF COMMERCE

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CREATIVE GROUP

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ADVANTAGES & DISADVANTAGES OF STRATEGIC MANAGEMENT

Introductions:

Introductions Strategic management is the conduct of drafting, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. “Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors

ADVANTAGE of SM:

ADVANTAGE of SM Ensure allocation of resources :Every organisation has limited resources and success organisation depends on its proper allocation so as to create value for all stakeholders due to strategic planning Forces an objectives assessment : Provide deciplin that enables senior management to do strategic planning and assess very objective all the aspects of business Improves co-ordination between different dept : improves the communication between the department to achive the common goal .

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Anticipate & create future : corporation not only able to survive but also add value and create a better tomorrow for them and the society by strategic management Evaluations & control : : once a strategic plan is in place , it also lays down the guidelines for implimantation and control. This way we can also study how the actual varied from the budgeted and know what works and what does not work.

Disadvantages:

Disadvantages Future is uncertain future does not always unfold as anticipated . due to technological changes , social and economic changes , the market may react differently than expected thus strategic planning would fail as it can not predict external environment always Costly &time consuming : strategic planning is very complex and time consuming process . at times , external consultant have to be called who charge health fees . the entire process as as the cost and therefore can not be undertaken by small and medium enterprises

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Implementation is crucial : “ however beautiful the strategy , you should look at the result”. WINSTON CHURCHILL In the global economy, with cut throat competition, it is difficult to implement strategies in a very dynamic environment. long term benefit v/s immediate result strategic management involves long term planning and all its objective are also to be achieved in a time frame of three years and above and therefore cannot be used for immediate problems which may be crucial.

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Mintzberg's 5 Ps for Strategy

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The word "strategy" has been used implicitly in different ways even if it has traditionally been defined in only one.

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Plan Strategy is a plan - some sort of consciously intended course of action, a guideline (or set of guidelines) to deal with a situation. By this definition strategies have two essential characteristics: they are made in advance of the actions to which they apply, and they are developed consciously and purposefully Ploy As plan, a strategy can be a ploy too, really just a specific man oeuvre intended to outwit an opponent or competitor

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Pattern If strategies can be intended (whether as general plans or specific ploys), they can also be realized. In other words, defining strategy as plan is not sufficient; we also need a definition that encompasses the resulting behaviour : Strategy is a pattern - specifically, a pattern in a stream of actions. Strategy is consistency in behaviour , whether or not intended. The definitions of strategy as plan and pattern can be quite independent of one another: plans may go unrealised , while patterns may appear without preconception. Position Strategy is a position - specifically a means of locating an organisation in an "environment". By this definition strategy becomes the mediating force, or "match", between organisation and environment, that is, between the internal and the external context.

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Perspective Strategy is a perspective - its content consisting not just of a chosen position, but of an ingrained way of perceiving the world. Strategy in this respect is to the organisation what personality is to the individual. What is of key importance is that strategy is a perspective shared by members of an organisation , through their intentions and / or by their actions. In effect, when we talk of strategy in this context, we are entering the realm of the collective mind - individuals united by common thinking and / or behaviour

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RAHIB SIR SUBMITED TO

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Thank you LALIT MISAL YAYATI KULKARNI AJINKYAY PAGARE