Limitations of Strategic Management

A contrary view on strategic management is that it significantly limits the manager’s discretion in a dynamic market landscape.  Strategies are developed to provide direction to the organization, and guidance on how to respond to adverse or favorable situations, however, there are certain elements that are completely left out from the consideration.

According to Mintzberg “Strategy is a categorizing scheme by which incoming stimuli can be ordered and dispatched.” Since a strategy drives the organization in a particular direction, the approach may not be any more valid due to changes in circumstances. Mintzberg further said, “Strategy once established is a force that resists change, not encourages it.”

Some experts, in turn, promote an iterative approach, which is a repetitive learning cycle [rather than] a linear progression towards a clearly defined final destination.

Woodhouse and Collingridge suggested that true strategy should ideally follow the “intelligent trial-and-error” concept in spite of adherence to pre-decided strategic plans.

Other expert quotes include: “Strategy should be seen as laying out the general path rather than precise steps”. “Means are as likely to determine ends as ends are to determine means.” “The objectives that an organization might wish to pursue are limited by the range of feasible approaches to implementation.”