Importance of mission, vision and objectives in strategic management process. Few examples of strategic and
financial objectives.
Strategy is the direction and scope of an organization over the long term which:
Achieves advantage for the organization
Optimizes utilization of limited resources
Fulfill stakeholder expectation within:
Changing environment
Management of the process of strategic decision making and implementing
Includes:
Understanding the strategic position
Developing strategic choices for the future
Turning strategy into action
Unify organisations
More alert to environment (opportunities and threats)
To steer resources to desirable areas promising growth and profits
• Typical strategic moves:
• Alter geographical coverage
• Mergers and acquisitions
• Strategic and/or collaborative alliances
• Managing internal R&D, production, finance and other key functions
• Strengthen competitive capabilities
• New industries or business entry
• React to external changes
• Turn around a company in crises
• Double digit growth
• Typical types:
• Planned strategy– new initiative (proactive)
• Reactive strategy- emerging circumstances
• Abandoned strategy
• Company strategies are partly visible and partly hidden to outside view
• Strategies develop over time to match internal and external factors in congruence with company values
• Developing strategy is partly an exercise in entrepreneurship
• Seeking new opportunities
