Benefits, Limitations, Pitfalls and Challenges of Strategic Planning - Essay Example

Strategic planning creates awareness of potentials, strengths, weaknesses, opportunities, and threats in the organization. Other benefits include the provision of the necessary information to support decision-making and enhancement of the growth process. In fact, through a strategic plan, poor performing is identified in order to improve the locus of control concerning operational problems. It also facilitates the development of effective communication within and outside the organization (Taylor, 1984).

Lastly, it offers a roadmap that indicates the directions for the company to follow and explains the way to achieve various objectives through the development of substantial coordination. Limitations and Challenges On the other hand, there are challenges experienced in the process of strategic planning such as ensuring the commitment of top-level management. This is due to the nature of strategic planning, whereby it contributes to the reduction of executive decision-making power. Moreover, it facilitates involvement in the organization thereby empowering people to engage in decision-making (Hax & Majluf, 1996).

Consequently, this can result in a decision-making role from the executive to the employees and stakeholders. Therefore, strategic planning can lead to the impediment of changes and discourage disruptive considerations by the organization. On the other hand, it discourages creativity and innovation given that it fails to handle these ideas.