CA Inter P6 · Chapter 10 · Question 7 of 10
Which of the following is a recognised limitation of strategic management?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The environment is complex and changes quickly, so it is hard to predict, and the process takes considerable time and cost
Explanation
Strategic management helps an organisation be proactive and anticipate change, but it has limitations. The environment is highly complex and turbulent, which makes forecasting difficult. The process takes time and money, and fully reliable future planning is impossible. It applies to all types of organisations and depends on top management judgement.
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