Limitation of Strategic Management

Besides numerous benefits, Strategic Management has following disadvantages:

Strategic Management is based on certain principles and if the properties do not hold suitable the strategy or plans based on them would not be sensible or effectual. SWOT analysis is an important exercise in Strategic Management which requires lot of action and information. When these two are lacking the usefulness of the SWOT analysis is questionable and it could even lead to formulation of wrong or effective strategies. In Strategic Management, effective implementation is essential that demands many factors such as resource allocation, leadership implementation, right structure and effective evaluation and control. The cause for the failure of many strategies is the implementation failure. Company may face serious issues if there is lack of involvement of the internal people in the strategy formulation and when they are not equally taken into confidence. Strategic Planning is a multifaceted and complex task which requires people with vision, expertise and commitment and an appropriate system. Strategic Management is an expensive process. Major drawback of Strategic Management is that it sometimes makes the organization over determined and resultant failure to reach the goals cause disturbance. Impractical strategies may lead to serious problems.

To summarize, Strategic management facilitate an organization to make its decisions based on long-term prediction. It also allows the establishment to make action at an early stage of new trend and consider the lead-time for effective management. The study of strategic management stresses the monitoring and evaluating of external opportunities and threats in the view of a company's strengths and weaknesses in order to create and implement innovative strategic direction for company.