What is the challenge of strategic management?

Achieving the strategicalal competitiveness and earning above average returns is maven of the strategic prudence scraps. It is truly difficult to be achieved even if the sure is very big and it is even harder for those companies that argon in undersize scale. eventually the profits are usually hard to begin or gain. The rigours of change and also competition catch are other challenge. For instance, in 2000, yet 10 of Australias largest 100 enterprises had been in note at the beginning of the century. And according to Business appraise Weeklys annual list of the Top 1000 companies, more(prenominal) than 30% of the companies drop attain in severally decades. This shows that more and more company allow be drop out for the years to come and it provides a good indication of attrition. Not only that, it also shows that on that point are too many rivalry for a genuine firm to compete with in a certain market and it is a very hard challenge for the firm to mac hine their strategic management. Profit is one of the aim or final stage for most of the firm or company. However, in strategic management, knock-down(prenominal) 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 maximising consumer mirth and loyalty, business leadership and product or process quality. And it is very hard to achieve actually because each consumer is assorted 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 company or firm do c! reates 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... practiced to append something here, Strategic Management is looking forward into 5 - 10 years, and in this process managers have to be thinking(prenominal) in their decisions by taking into considerations the implicit costs (opportunity cost) & angstrom unit; stated costs (accounting costs) when doing the cost benefit analysis. If you want to channel a full essay, order it on our website: OrderCustomPaper.com

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