What is the challenge of strategic management?

Achieving the strategicalal competitiveness and earning above average returns is one and only(a) of the strategic perplexity scraps. It is very(prenominal) difficult to be achieved even if the sure is very big and it is even harder for those companies that argon in undersize scale. lastly the profits are usually hard to begin or gain. The rigours of change and also competition catch are another(prenominal) challenge. For instance, in 2000, yet 10 of Australias largest 100 enterprises had been in cable at the beginning of the century. And according to Business appraise Weeklys one-year list of the Top 1000 companies, more(prenominal) than 30% of the companies drop take out in severally decades. This shows that more and more company go forth be drop out for the years to come and it provides a good indication of attrition. Not only that, it also shows that thither are too many rivalry for a authentic firm to compete with in a certain mart and it is a very hard challenge for the firm to execute their strategic management. Profit is one of the aim or terminus for most of the firm or company. However, in strategic management, untouchable and consistence profit is not the main antecedency or concern. A strong and well-thought-out strategy was the top concern. This was followed by increase consumer mirth and loyalty, business leadership and product or proceeds quality. And it is very hard to achieve actually because each consumer is divergent from one another in terms of the satisfaction towards a certain product or service quality. So, this could be one of the challenges of strategic management.

Some com! pany or firm do creates their own problems by formulating the wrong strategy or implementing a strategy poorly. This will cause the company to make a loss rather than a profit. Sometimes do happen... sightly to append something here, Strategic Management is looking forward into 5 - 10 years, and in this process managers have to be rational in their decisions by taking into considerations the implicit costs (opportunity cost) & vitamin A; stated costs (accounting costs) when doing the cost benefit analysis. If you want to convey a full essay, order it on our website: OrderCustomPaper.com

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