Key terms in strategic management
-
Upload
remark-the-marketing-students-association -
Category
Business
-
view
8.094 -
download
0
description
Transcript of Key terms in strategic management
![Page 1: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/1.jpg)
StrategistsVisionMission statementOpportunitiesThreatsStrengthsWeaknessGoalsObjectivesStrategies
![Page 2: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/2.jpg)
ValuesBeliefsCulturePolicies
![Page 3: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/3.jpg)
Most responsible for the success or failure of an organization
![Page 4: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/4.jpg)
“Vision refers to the goals that are broadest most general and all-inclusive. A vision describes aspirations for the future without specifying the means necessary to achieve those desired ends”.
Alex Miller
A vision is an image of its desired future
![Page 5: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/5.jpg)
A vision refers to the category of intensions that are board, all inclusive and forward thinking.
A vision describes aspirations for the future without specifying the means that will be used to achieve these desired ends.
In short “ vision is the desired future state
“the most successful consumer package goods company in the world.”
![Page 6: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/6.jpg)
IncludeWhat the organization is to become.Broad and general purpose.
Examples,1 A world class manufacture2 A quality organization3 A provider of so-called legendary service
![Page 7: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/7.jpg)
The visioning process addresses the fundamental question “where do we want to be ?”
This question is relevant toIndividualsOrganizationsNations
![Page 8: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/8.jpg)
“To be a fully developed nation on par with USA and Japan”
Nation’s vision of Malaysia – 2020
Characteristics of visionFuturisticPositiveInspiring and challengingNot a fantasy or a wild dream(It is a dream in action)
![Page 9: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/9.jpg)
AchievableBroad and general
![Page 10: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/10.jpg)
Hemel and Prahalad have suggested five criteria for judging the relevance of the vision.
Foresight – what imagination Breadth – how broad Uniqueness – will it cause our
competitors to be surprised
Consensus Actionability
![Page 11: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/11.jpg)
“A vision becomes tangible as a mission statement. Writing such a statement specifies a leader’s values, beliefs about an organization and the directions in which should move. It can also identify what is unique about the character of the organization”
Gregory G Dess, Miller
![Page 12: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/12.jpg)
A mission statement is a generalized statement of the overriding purpose of an organization. It can be through of as an expression of its reason for exist.
There should be an agreement within the organization or with stakeholders.
ORIGINS OF MISSION STATEMENT Set by senior managers Developed as the result of a
consultation exercises with shareholders, staff, consumers, suppliers and others
Developed by consultants
![Page 13: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/13.jpg)
A mission statement is a generalized statement of the overriding purpose of an organization. It can be through of as an expression of its reason for exist.
There should be an agreement within the organization or with stakeholders.
ORIGINS OF MISSION STATEMENT Set by senior managers Developed as the result of a
consultation exercises with shareholders, staff, consumers, suppliers and others
Developed by consultants
![Page 14: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/14.jpg)
To provide a basis for consistent planning decisions
To assist in translating purpose and direction into objectives suitable for assessments and control
To provide consistent purpose between interest groups connected to the firm
To establish organizational goals and ethics
To improve understanding and support from key groups outside the firm.
![Page 15: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/15.jpg)
What is our reason for being? What is our basics purpose ?
What is unique about our organization? Who are , or who should be our major
customers, clients or key market segments ?
What is our principal goods and services, present and future ?
What are the basic values, aspirations and philosophical priorities of the firm ?
![Page 16: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/16.jpg)
Pierce and David suggest that
Target customers and market Principal products and services Geographical domain Core technologies Concern for survival, growth and
profitability Company philosophy Desire for public image
![Page 17: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/17.jpg)
The mission of the American Red Cross
is to improve the quality of human life; to
enhance self-reliance and concern for
others; and to help people avoid,
prepare for, and cope with emergencies.
American Red Cross
![Page 18: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/18.jpg)
Mission statement establishes boundaries to guide strategy formulation
Mission statement acknowledges responsibilities to various stakeholders and establishes standards for organizational performance along corresponding dimensions
Mission statement suggested standards of individual behavior.
![Page 19: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/19.jpg)
They are often full of meaningless statements such as the “best” or “Quality” which are open to interpretation and can not be formulated as precise objectives
They can not constrain action because they can easily be written and in any case no one take them seriously
They are commonly not shared by staff and other influential stakeholders.
![Page 20: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/20.jpg)
A mission statement focuses on current business activities -- “who we are and what we do” Current product
and service offerings
Customer needs being served
Technological and business capabilities
A strategic vision concerns a firm’s future business path -- “where we are going” Markets to be
pursued Future
technology-product-customer focus
Kind of company that management is trying to create
![Page 21: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/21.jpg)
These are qualitative statement about what the company likes to achieve.
Examples Customer service, profitability,
innovation etc. The following features help goals to be
effective.
![Page 22: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/22.jpg)
A. Consistency Vertically
Vision
mission
goals
objectives
operating targets
![Page 23: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/23.jpg)
Highest quality, widest distribution and least cost may will be inconsistency.
B. FeasibilityC. UnderstandableD. acceptability
![Page 24: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/24.jpg)
Specific results that an organization seeks to achieve……..
Long-term objectives ……in pursuing its basic mission. Short-term objectives ……in order to achieve its long-term
objectives
![Page 25: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/25.jpg)
SMART objectives Specific Precise and understandable Measurable in order to confirm achievement Agreed with those responsible Realistic achievable Times deadline
![Page 26: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/26.jpg)
Forecast of Value system, powerFuture envi relation within the org.
Analysis of opportunities for and The present threats to the org.Environment mix
of
Analysis of strengths and objec The Org weaknesses
![Page 27: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/27.jpg)
Product Productivity Market Profitability Research and innovation Human resources Financial resources physical resources
![Page 28: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/28.jpg)
Customer services Structural development Social responsibility
![Page 29: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/29.jpg)
Type of goals Responsibility Mission Top management L/R objectives Top management S/R objectives Top management SBU L/R S/R objective SBU management Functional Functional Mgt Sub units Sub units Mgt Individuals individual employees
![Page 30: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/30.jpg)
Opportunities & threats Economic, social, political, demographics,
natural, technological and competitive trends events that could significantly benefit (favorable) or harm (unfavorable) an organization in the future
![Page 31: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/31.jpg)
Strengths & weaknesses Controllable activities within an organization
that are performed especially well or poorly. Policies Guidelines rules and procedures established
for support to implement selected strategy. Policies are rules that are explicitly stated or
implicitly understood Eg. We will not be undersold We will not operate east and north of the Sri
Lanka
![Page 32: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/32.jpg)
We will not question why an item is returned. We will not depend upon outside suppliers for
the most critical components for the assembly of our products.
![Page 33: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/33.jpg)
System of shared values and beliefs that shape a company’s people, organizational structures and control systems to produce behavioral norms Alex Miller
Value What is important Belief How things works Behavioral norms The way we do things around here.
![Page 34: Key terms in strategic management](https://reader035.fdocuments.in/reader035/viewer/2022062319/55542c4db4c905987e8b5007/html5/thumbnails/34.jpg)
Shared philosophies, expectations, attitudes and norms that knit an organization together
KilmannBasic assumptions and beliefs shared by
organization members.Schein