Five Limitations of Corporate Strategy

The corporate strategy has the following specific limitations:
Harvard Business Review on Corporate Strategy (Harvard Business Review Paperback Series)

  1. The process of strategy formulation is not an easy one. The process of forming corporate strategy is complex, cumbersome and complicated.
  2. Corporate strategies are useful for long range problems. They are not effective to overcome current exigencies.
  3. The corporate strategy formulation process calls for considerable time, money and effort. Developing appropriate corporate strategy is not a simple and economical proposition. For financially weak companies, cost becomes a great hindrance.
  4. As future is uncertain and cannot be predicted accurately, the strategic planning system based on hazy and uncertain estimates is not exact.
  5. Implementation of corporate strategy is influenced by organizational factors, behaviorial factors and motivational factors. The gap between formulation and implementation of corporate strategy does not give desired results to the organization