The Most Common Strategy Mistakes Assignment Example | Topics and Well Written Essays - 500 words

The Most Common Strategy Mistakes - Assignment Example He asserts that strategy is formulated while keeping customers in mind and so the value proposition is created, but this only serves the demand side of the strategy. He believes that organizations need to take into consideration the supply side of the strategy in order to be more effective and they should take both sides of the strategies to cover all grounds. Another mistake that organizations make is the overvaluation of their strengths. He believes that organizations are biased towards identification of strengths and they develop their strategies accordingly. He asserts that an organization’s strength may be best customer service, but this strength can be attained by any organization. He believes that strengths of one organization should be different from the strengths of another organization and other organizations should not be able to obtain the same strengths as one organization already has. 2. There are several barriers due to which managers fail to devise an effective strategy. Porter asserts that various obstacles are created due to covert biases that are invested in a particular business, the way the organizations are structured and the way decisions are made. For example: managers fail to obtain the accurate data required for making any form of decisions because of internal issues and conflict within the organization and there may be cases where those who are performing well are undervalued and those who are not putting in too much effort are simply sitting and absorbing all the rewards. Another issue is that managers have failed to accept and count upon differentiation strategies and they rather believe in having a huge customer base. Due to this they fail to enhance their value proposition and only focus on serving to serve. Barriers to creation of effective strategy even exist in the external environment of an organization; Porter claims that there are