Question

In: Finance

When does strategic misalignment arise?

When does strategic misalignment arise?

Solutions

Expert Solution

"STRATEGIC MISALIGNMENT"

The term represent ,the specified goal/outcome that could not be achieved by the company or firm due to the reason that is not in aligned way, that made with the operation and execution trick . In other word we can say that our firms /companies ecosystem either it is interior or exterior factor must not be moving in the same well defined direction.

In short strategic misalignment means a situation where company business and the product development strategies are not aligned with its customer,user and market price.

CAUSES OF MISALIGNMENT

1-Relation between management and employees- This reason is the root cause of misalignment. In the companies ecosystem , if different department's work not in the same direction ,manager and employees work according to their own ideas for the accomplishment of the goal.

due to this deadline are not met within operation due to extraneous activity occuring in the environment.

2- Freezed growth- When growth of the organisation begin to satll or freeze due to misalignment, their needs to support and sustain profitable growth get into trouble despite leade and employee's best intension, they cannot sufficiently called in it efforts on their own to right the ship. it requires to work in concert together.

3- Duplicacy of initiatives.- It occurs as a result of trying to increase sales but spending redundant money. These unsynchronized activities begin to impact each other.

You can take example of a marketting company to do PPC ads for you and then doing your own (PPC)ads.

4- Erosion of corporate culture and moral suffers- This condition occurs due to chaos among leaders and workers, who shares profound dislike of organisational chaos .

If employees donot understand our culture then our moral has already decreased. Its the leader's responsibility to maintain the culture and keep it forward.

5- Profitability decline- The main impact of misalignment , inevitably falls to the bottom line. There are various reason for declined revenue or profit but most of these reason belongs to ,mislignment. example- when new servicesand products are delayed in roll out because the initiative to bring themto market are unsuccessful.

Therefore,we can say that this misalignment does not occur suddenly and does not remove quickly.


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