The 5 Task of Strategic Management
1. Charachteristic of a Strategic Vision
– Future Technology, Geographic and Product market to pursue, Capabilities to be developed, and Kind of Company management is trying to vision
Difference between Vision and Mission
Vision: is a future business path (orientation: Market to be pursue, Future Technology – Product Costumers Focus, and Kind of Company that management is trying to create.
Mission: a focus on current business activities (orientation: current product and service offering, Costumer Needs being served, Technological and business capabilities.
Component of Mission: Costumer, Product, Market, Technology, Sustainability-learning and profit, philosophy, concern for survival Growth-and profitability, self concept, how to make brand personal, concern for public image, and concern for employers.
Why is Strategic Vision Important? a managerial imperative exist to look beyond today and think strategically about:
a. Impact of new technology,
b. how costumer needs and expectations are changing
c. what it will take to outrun competitors
d. Which promoting market opportunities ought to aggressively pursued
e. external and internal factors driving what a company needs to do prepare for future,
2. Setting Objective (include: Financial Objectives and Strategic Objectives)
Convert Strategic vision and mission into specific performance target
Creates yardsticks to track performance
Pushes firm to be inventive and focused on results
a. Financial Objectives: outcome focused on improving financial performance.
b. Strategic Objectives : outcomes focused on improving long-term, competitive business position
3. Crafting a Strategy
a. Strategy Involves determining wheter to
– Concentrate on a single business or several business (diversification)
– Cater to a broad range of costumers or focused a particular niche
– Develop a wide or narrow product line
– Pursue a competitive advantage base in low cost, Product superior or unique organizational capabilities
b. Involves deciding how to
– Respond to changing buyer preferences
4. Implementing and Executing Strategy (action Oriented)
– Taking actions to put a freshly – chosen strategy into place
– Supervising the ongoing pursuit of strategy
– Improving the competence and efficiency with which the strategy being executed
– Showing action oriented and make it happen.
5. Monitoring, Evaluating, and Taking Corrective Action is Needed
– Customer needs and competitive conditions change
– New Opportunity appear: technology advantages, any number of other outside development occure
Monday, August 22. 2011