Summary Notes on Unit 10 - Problems with Strategy pt2

Problems of strategy 10/1/2023


Strategic planning
 The benefits of strategic planning include:
o Clear sense of direction
 Throughout the hierarchy if communicated effectively
 Encourages accountability
o Prior consideration to key internal strengths and weaknesses of the business
and external opportunities and threats.
o Logical process
o Identifies and gives consideration of range of strategic options
o Encourages progress to be tracked
o Allows for progress to be revived
 However:
o May be too constraining if lacks flexibility
o Needs to be monitored and reviewed
o Requires resources
o Cannot predict the future
o Cannot deter the unexpected

Contingency planning
 Is the process by which organisations try to prepare for unexpected and potentially
disastrous events
 Businesses have to be able to respond to change and change can be unpredictable
 Crisis management is the manner in which an organisation responds to an
unexpected and potentially disastrous event.