Common Mistakes in Strategic Planning: The Role of Accurate Market Assumptions in Business Success

True or false: One reason a company might create a bad strategic plan is because they make incorrect assumptions about what will happen in the market going forward.

True

True.

One potential reason a company might create a bad strategic plan is due to incorrect market assumptions. If a company makes assumptions about the market that ultimately do not come to pass, then their strategic plan may not effectively position them for success. For example, if a company assumes that a new product they are developing will be in high demand, but it ultimately isn’t, then their strategic plan may be ineffective. Similarly, if a company assumes that their competition will not be able to compete effectively, but this does not come to pass, then their strategic plan may be flawed. Therefore, it is important for companies to thoroughly research and analyze market trends and data in order to make accurate assumptions and create effective strategic plans.

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