Categories: Strategy

Why Firms Not Do Strategic Planning?

In the today’s world of global economy and competitive environment, there are still many firms still not doing strategic planning due to some known and unknown reasons. In some firms where low and middle management has been doing strategic planning but not receive any support from the top level managers. Here are some known reasons for doing poor or no strategic planning.

1. An organization has no prior experience in strategic planning.

2. An organization has poor reward structures due to this reason employees are not motivated to put sincere efforts for the organization long term success.

3. An organization going through bad patch do not get enough time for strategic planning because it has been putting all its efforts for its survival.

4. Some firms believe that planning is not a productive activity and consider it as a waste of time. The same time could be utilized for the production of new products and services.

5. A firm has an understanding that we are successful therefore no planning is required.

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