Answer to Question #213849 in Management for sumair

Question

). Briefly discuss the advantages and disadvantages of each of these planning strategies:

 

a.      Maintain a level rate of output and let inventories absorb fluctuations in demand.

b. Vary the size of the workforce to correspond to predicted changes in demand requirements.

c.    Maintain a constant workforce size, but vary hours worked to correspond to predicted demand requirements

Answer 1

Advantages

a)     This is frequently the most significant advantage. According to certain research, independent of the effectiveness of a given strategy, the strategic planning process itself contributes significantly to enhancing a company's overall performance.

b)     Managers are forced to think when it comes to strategic planning. By utilizing the management team's ideas, it can stimulate creativity and initiative. Employees may be involved in the strategic planning process through both top-down and bottom-up ways.

c)     Managers in charge of strategic planning must communicate the goals and objectives, strategic adjustments, and future plans to the entire organization.

Disadvantages

a)     Strategic planning becomes a costly, rigorous, and time-consuming process if organizations do it thoroughly. Implementing a strategic strategy can take five or more years in some cases.

b)     Outside pressures such as changes in the economic climate, competitor actions, and/or technology change frequently cause strategic plans to fail.

c)     Strategic planning is a difficult task.