Summary Notes on Unit 10 - Problems with strategy pt 1

Problems with strategy and why strategies fail 13/12/2022


Strategy – medium to long term plan for how you meet your business objectives.
 Always involve risk and uncertainty

Difficulties include:
 Unforeseen circumstances
 Changing external environment
 Difficult to predict competitor’s actions or threat of new entrants into the market.
 Changing nature of the global market
 Lack of knowledge and expertise
 Poor leadership
 Poor management of resources
 Resistance for change by the workforce
 Brand dilution



Planned vs emergent strategy

Planned strategy:
 Introduced with foresight
 The strategy is the one the manager wanted to implement
 Provides a clear sense of direction
 Easily communicated
 However may lack flexibility

Emergent strategy:
 Developed over time
 Responds to change in the internal and external environment
 Greater flexibility
 May create a feeling of mistrust amongst stakeholders due to frequent revisions
leading to lack of confidence.