3.10.4 Problems with strategy and why strategies fail

• What does strategic change involve for a business?

  Adapting to new circumstances
• Why should businesses address emerging threats through strategic change?

  To stay relevant
• What happens when insufficient market research is conducted?

  Strategies misalign with needs
• How can environmental changes affect a business's strategy?

  Invalidate the strategy
• Strategic change may involve modifying organizational structure.


  True
• Match the category of strategy failure with its cause:

  Planning ↔️ Insufficient Market Research

  Execution ↔️ Lack of Employee Buy-In

  External Factors ↔️ Environmental Changes
• Changing customer preferences may necessitate strategic changes to product offerings
• Unfavorable economic conditions can undermine the viability of a business's strategy
• What must businesses do to avoid strategy failure due to external factors?

  Adapt their strategies
• Match the internal factor with its impact on strategy:

  Resource Constraints ↔️ Limits the ability to execute strategic plans

  Leadership and Management ↔️ Results in flawed strategies

  Operational Inefficiencies ↔️ Impedes the delivery of strategic objectives

  Organizational Culture ↔️ Undermines the execution of strategic changes
• Reasons why businesses need to undergo strategic change:

  1️⃣ Maintain competitiveness

  2️⃣ Capitalize on new opportunities

  3️⃣ Address emerging threats

  4️⃣ Stay relevant in a dynamic market
• What is a common execution-related cause of strategy failure?

  Lack of employee buy-in
• Why is staying relevant in a dynamic market a key reason for strategic change?

  To address emerging threats
• Businesses undergo strategic change to maintain competitiveness
• A strategy with poor planning lacks clear goals
• Resistance to change is often due to poor employee involvement
• Unrealistic goals are objectives not achievable with current company resources
• Poor planning occurs when a strategy lacks clear goals
• Technological changes can disrupt existing business models
• Steps businesses should take to avoid strategy failure:

  1️⃣ Monitor the external environment

  2️⃣ Adapt strategies accordingly
• Regulatory changes may require businesses to modify their strategies to remain compliant.


  True
• A rigid organizational culture can hinder the implementation of strategic changes
• Why are internal organizational factors more within a business's control than external factors?

  They can be addressed directly
• Capitalizing on new opportunities is a key reason for strategic change.


  True
• Inadequate resource allocation can lead to strategy failure.


  True
• Failure to translate strategic plans into actionable steps is a cause of strategy failure.

  True
• How can resource constraints impact a business's strategy?

  Limit the ability to execute
• Match the internal factor with its impact on strategy:

  Organizational Culture ↔️ Misalignment undermines execution

  Leadership and Management ↔️ Flawed strategies and poor implementation

  Resource Constraints ↔️ Limits ability to execute strategic plans

  Operational Inefficiencies ↔️ Impedes capacity to deliver objectives
• Inadequate resource allocation can severely limit a business's ability to deliver on its strategic objectives.

  True
• Strategic change is vital for staying competitive, capitalizing on new opportunities, and addressing emerging threats
• External environmental changes can invalidate a strategy and lead to its failure
• Unfavorable economic conditions can undermine the viability of a strategy
• Steps businesses must take to avoid failure due to external factors

  1️⃣ Monitor the external environment

  2️⃣ Identify key external factors

  3️⃣ Assess the impact of these factors

  4️⃣ Adapt strategies accordingly
• Insufficient resources can limit a business's ability to execute its strategic plans.


  True
• What is one consequence of inadequate resource allocation on strategy implementation?

  Insufficient capabilities
• Steps for proactive management of a strategy based on evaluation

  1️⃣ Track progress

  2️⃣ Evaluate performance

  3️⃣ Identify strengths and weaknesses

  4️⃣ Adjust strategy as needed
• Strategies can fail due to issues in planning, execution, and external factors.


  True
• Environmental changes are an example of an external cause of strategy failure
• What can a rigid organizational culture hinder in a business strategy?

  Strategic changes
• What is one key internal factor that can lead to strategy failure?

  Lack of employee buy-in