What is the challenge of strategic management?

Achieving the strategicalal competitiveness and earning above average returns is iodin of the strategic worry scraps. It is in truth difficult to be achieved even if the sure is very big and it is even harder for those companies that argon in undersize scale. at last 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 duty at the beginning of the century. And according to Business appraise Weeklys yearbook list of the Top 1000 companies, more(prenominal) than 30% of the companies drop transfer 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 place and it is a very hard challenge f or the firm to weapon their strategic management. Profit is one of the aim or polish for most of the firm or company. However, in strategic management, tough 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 go quality. And it is very hard to achieve actually because each consumer is contrary 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 creates their own problems by formulating t he wrong strategy or implementing a strategy! poorly. This will cause the company to make a loss rather than a profit. Sometimes do happen... on the nose to append something here, Strategic Management is looking forward into 5 - 10 years, and in this process managers have to be apt 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 start up a full essay, order it on our website: OrderEssay.net

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