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Unit 3: Planning

10. Poor communications: The reasons for this may be the following: Notes
(a) Insufficient information sharing among stakeholders
(b) Exclusion of stakeholders and delegates

Task Give instances from Indian business scenario where business strategy of a
firm failed to give expected results.
3.6.4 Limitations of Strategic Management

Although a sense of direction is important, it can also stifle creativity, especially if it is rigidly
enforced. In an uncertain and ambiguous world, fluidity can be more important than a finely
tuned strategic compass. When a strategy becomes internalized into a corporate culture, it can
lead to group think. It can also cause an organisation to define itself too narrowly. An example
of this is marketing myopia.
Many theories of strategic management tend to undergo only brief periods of popularity.
A summary of these theories thus inevitably exhibits survivorship bias (itself an area of research
in strategic management). Many theories tend either to be too narrow in focus to build a complete
corporate strategy on, or too general and abstract to be applicable to specific situations. Populism
can have an impact on a particular theory’s life cycle and may see application in inappropriate
circumstances. See business philosophies and popular management theories for a more critical
view of management theories.
In 2000, Gary Hamel coined the term strategic convergence to explain the limited scope of the
strategies being used by rivals in greatly differing circumstances. He lamented that strategies
converge more than they should, because the more successful ones are imitated by firms that do
not understand that the strategic process involves designing a custom strategy for the specifics
of each situation.
Ram Charan, aligning with a popular marketing tagline, believes that strategic planning must
not dominate action. “Just do it!”, while not quite what he meant, is a phrase that nevertheless
comes to mind when combatting analysis paralysis.

Case Study Strategy Formulation at Wal-Mart

orter (2002) states that root of the problem lies in the lack of distinguishing between
operation effectiveness and strategy. The expedition for productivity, quality and
Pspeed has resulted in management tools and techniques, total quality management
benchmarking, time based competition, outsourcing, partnering, reengineering, change
management. In any organisation, strategy management is the key to its success. There
are many theories based on this assumption that without a proper strategy and planning,
it is difficult for any industry to survive irrespective of its size. It is necessary to understand
here that all the major corporate organisations have established themselves, thanks to
superior strategic planning and implementation. The retail industry is making news
everywhere with not only the traditional industries increasing their outlets but some
major corporate industries also intruding into this industry like Fresh @ Reliance of

Contd...

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