Topic ch 9 unit 7 q12
There are a host of reasons why strategic evaluation is growing more complex as time goes by. It is worth noting that the business environment has changed drastically from what it was not long ago. First, there is no doubt that there has major change to the domestic and world economies from the previous stable to today’s volatile economy. This is especially the case because of the current global financial crisis that has greatly compromised the stability of the economy that existed in the past (Walker, 2003).
Secondly, strategic evaluation is a challenge owing to the fact that product life cycle is no longer as long is it used to be in the past. This is because products are phased out too quickly thanks to the improved technology that produces newer products in mass quantity. Similarly, faster technological advancement is rendering it difficult to maintain strategic evaluation because of the need to constantly upgrade to the newer technology (David, 1997). Furthermore, there is increased number of competitors in the market which makes it difficult to align an all-inclusive strategy.
Strategic evaluation has also become more difficult because of the sophistication and growth of foreign companies that are often able to counter a domestic company’s strategy too quick. The aspect can also be attributed to increased free trade where there is no much regulation of industries as it were in the past (Tash, 2006).
Furthermore, the corporate has also undergone strategic-alterring trends that have made it difficult to sustain a strategic evaluation (Kazmi, 2008). These include: decreased time span for planning with degree of certainity, increase in both local and global events influencing organizations, rapid rate of obsolescence of even well-thought plans, increased number of variables, dramatic increase in the complexity of the environment, and the apparent difficulty of forecasting the future with some degree of accuracy.
References:
David, R. Fred. (1997). Concepts of Strategic Management. New Jersey, Prentice Hall.
Kazmi. (2008). Strategic Management And Business Policy. India, Tata McGraw-Hill Education.
Tash, R. William. Evaluating Research Centers and Institutes for Success! Florida, Bill Tash.
Walker, Godon. (2003). Modern Competitive Strategy. United Kingdom, McGraw-Hill International.
