Why strategic plans fail???
In general, strategic plans can fail for two types of reasons: inappropriate
strategy, and poor implementation. Strategy can be inappropriate due to:
inaccurate intelligence gathering, failure to understand the true nature of the
problem, the strategy is incapable of obtaining the desired objective, the strategy
is a poor fit between the external environment and an organizations' resources,
or it is not feasible. A strategy can be implemented poorly due to: overestimation of resources and abilities, failure to coordinate, ineffective attempt to
gain the support of others, under-estimation of time, personnel, or financial
requirements, and failure to follow the plan.
Reasons Why Strategic Plans Fail
There are many reasons why strategic plans fail, especially:
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Failure to understand the customer
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why do they buy
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is there a real need for the product
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inadequate or incorrect marketing research
Inability to predict environmental reaction
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what will competitors do
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fighting brands
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price wars
will government intervene
Over-estimation of resource competence
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can the staff, equipment, and processes handle the new strategy
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failure to develop new employee and management skills
Failure to coordinate
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reporting and control relationships not adequate
o
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Failure to obtain senior management commitment
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failure to get management involved right from the start
o
failure to obtain sufficient company resources to accomplish task
Failure to obtain employee commitment
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new strategy not well explained to employees
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no incentives given to workers to embrace the new strategy
Under-estimation of time requirements
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organizational structure not flexible enough
no critical path analysis done
Failure to follow the plan
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no follow through after initial planning
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no tracking of progress against plan
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no consequences for above