Explain Why Do Companies Need A Strategy
Why do companies need a strategy?
Strategy is very important for a business. Without a strategy an existing business can drift away from its customers and become uncompetitive with its environment and eventually the business will stop making profit. This is known as strategic drift. In other words, having a strategy is a way to remain competitive or it is a way of forcing a strategic change when an organisation has drifted away from its environment and is staring to fail.
Lately, these strategic tools are being used in the creation of vision and mission statements, to be communicated to the stakeholders. These have a number of uses; they help to sell the idea of the company to its investors to secure resources for expansion. The move to culture …show more content…
It is necessary for a company’s success to ensure that these challenges are overcome. The following are some of the challenges associated the implementation of strategy:
1. Implementing strategy in an organisation incapable of carrying out the strategy successfully
It is vitally important that companies implementing a strategy ensure that the organisation which the strategy is being implemented in is capable of taking on ad enforcing the strategy. Many companies can fail here. This is due to an insufficient organisation. Occasionally the strategy isn’t the problem, it’s the business. A reason why it is challenging for organisations to carry out strategy successfully is because the strategy might be too difficult to implement and is far beyond the reach of the organisation. Even though a strategy is meant to push the company, sometimes it can be too impractical. Some reasons why the organisation would not be capable in implementing strategy might be; insufficient leadership, poor employee workforce, poor facilities and technology. (Strickland, 1999)
2. Insufficient budgets and …show more content…
and Strickland, A.J. (1999) Strategic management: Concepts and cases. 11th edn. Boston, MA: McGraw-Hill Education (ISE Editions).
Citations, Quotes & Annotations
Thompson, A.A. and Strickland, A.J. (1999) Strategic management: Concepts and cases. 11th edn. Boston, MA: McGraw-Hill Education (ISE Editions).
(Thompson and Strickland, 1999)
• Crafting and Executing Strategy
McGraw-Hill international edition
Thompson, A.A. and Strickland, A.J. (1999) Strategic management: Concepts and cases. 11th edn. Boston, MA: McGraw-Hill Education (ISE Editions).
Citations, Quotes & Annotations
Thompson, A.A. and Strickland, A.J. (1999) Strategic management: Concepts and cases. 11th edn. Boston, MA: McGraw-Hill Education (ISE Editions).
(Thompson and Strickland, 1999)
• Crafting and Executing Strategy
Thompson Jnr, Strickland, Gamble 15th edition
Thompson (2015) Crafting and executing strategy: The quest for competitive advantage: Concepts and cases. Singapore: McGraw-Hill Education (Asia).
Citations, Quotes & Annotations
Thompson (2015) Crafting and executing strategy: The quest for competitive advantage: Concepts and cases. Singapore: McGraw-Hill Education (Asia).
(Thompson,
Strategy is very important for a business. Without a strategy an existing business can drift away from its customers and become uncompetitive with its environment and eventually the business will stop making profit. This is known as strategic drift. In other words, having a strategy is a way to remain competitive or it is a way of forcing a strategic change when an organisation has drifted away from its environment and is staring to fail.
Lately, these strategic tools are being used in the creation of vision and mission statements, to be communicated to the stakeholders. These have a number of uses; they help to sell the idea of the company to its investors to secure resources for expansion. The move to culture …show more content…
It is necessary for a company’s success to ensure that these challenges are overcome. The following are some of the challenges associated the implementation of strategy:
1. Implementing strategy in an organisation incapable of carrying out the strategy successfully
It is vitally important that companies implementing a strategy ensure that the organisation which the strategy is being implemented in is capable of taking on ad enforcing the strategy. Many companies can fail here. This is due to an insufficient organisation. Occasionally the strategy isn’t the problem, it’s the business. A reason why it is challenging for organisations to carry out strategy successfully is because the strategy might be too difficult to implement and is far beyond the reach of the organisation. Even though a strategy is meant to push the company, sometimes it can be too impractical. Some reasons why the organisation would not be capable in implementing strategy might be; insufficient leadership, poor employee workforce, poor facilities and technology. (Strickland, 1999)
2. Insufficient budgets and …show more content…
and Strickland, A.J. (1999) Strategic management: Concepts and cases. 11th edn. Boston, MA: McGraw-Hill Education (ISE Editions).
Citations, Quotes & Annotations
Thompson, A.A. and Strickland, A.J. (1999) Strategic management: Concepts and cases. 11th edn. Boston, MA: McGraw-Hill Education (ISE Editions).
(Thompson and Strickland, 1999)
• Crafting and Executing Strategy
McGraw-Hill international edition
Thompson, A.A. and Strickland, A.J. (1999) Strategic management: Concepts and cases. 11th edn. Boston, MA: McGraw-Hill Education (ISE Editions).
Citations, Quotes & Annotations
Thompson, A.A. and Strickland, A.J. (1999) Strategic management: Concepts and cases. 11th edn. Boston, MA: McGraw-Hill Education (ISE Editions).
(Thompson and Strickland, 1999)
• Crafting and Executing Strategy
Thompson Jnr, Strickland, Gamble 15th edition
Thompson (2015) Crafting and executing strategy: The quest for competitive advantage: Concepts and cases. Singapore: McGraw-Hill Education (Asia).
Citations, Quotes & Annotations
Thompson (2015) Crafting and executing strategy: The quest for competitive advantage: Concepts and cases. Singapore: McGraw-Hill Education (Asia).
(Thompson,