Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 3: Strategy Formulation (Mission statement (may articulate org'…
Chapter 3: Strategy Formulation
Strategy formulation
Assessing the environment, development of strategies and selection of strategy
Development of strategies, policies formulation to achieve organizational goals
focus on external strategies, internal capabilities
Adapt the unpredictable environment, uncertain futures
Strategy seen as a plan, direction-setting framework. Address key questions using SWOT analysis
As a scope and direction of organization activities through long term within a changing environment
The decision influences long-term direction of the firm
Affected by:
environmental forces and resource availability
beliefs, values, expectations of stakeholders in power within/ around the company
Affects:
capacity to identify and develop resource capability for future initiatives
take advantage of present and future opportunities
operational decision and action at an operational level
Vision statement
Vision
strategic thinking visible manifestation in the vision of organization
written/ unwritten
internalized through meeting, face-to-face contact.
some leaders are great at expressing it verbally
core organization identity, represent the reason why it exist
closely linked with that it can do, reflect the resources, capabilities, competencies
expression of dynamic organization, the start and the future
2 parts of vision
the paradigm
core set of beliefs, assumptions which fashion view of org and its environment
related with corporate culture
an explicit core purpose strategic intent/ aspiration
Envisioned future
long term, challenging goals for 10-30 years
vivid descriptions of what it will be like to achieve goals, necessary to enthuse the implementers
Different forms
specific quantitative targets
common enemy to be defeated/ outcompeted
role model to be emulated in some aspects
internal transformations to be achieved
Vision Statement
Effective vision statement
develop by people across organization
clearly tied to external, internal environmental conditions
consistent with leader's decisions and actions
Attributes of vision
short
preferably one sentence
many inputs from manager
Expected outcomes
provide guidance, motivation by having attributes
widely circulated among members, stakeholders
used to inform major and minor decisions and actions
Attributes of vision statements
mission
basic philosophy
basic strategies
goals
important decision making rules
ethical standard expected of all employees
performance criteria
Mission statement
may articulate org's vision
not all have mission statement
some have it just for external consumption by key stakeholders
to alert stakeholders of what is being done in their interest - persuade to accord in policies
can be constructed to appeal to the broadest stakeholders
Reveals what org wants to be, whom it wants to serve
Also referred as
:
creed statement (statement of belief)
statement of purpose
statement of philosophy
statement of business principles
Purpose of mission statements
endure statement of purpose
distinguishes from other firms
declare reason for beings
Attributes of mission statements
stated clearly, understood by all
distinguished from other firms
limited to exclude some venture
broad enough to allow growth
define what it aspires to be
define what the org is
9 mission statements components
customer
-
products/ service
market
-
technology
concern for survival, growth, profitability
philosophy
-
self-concept
concern for public image
-
concern for employee
Organizational goals
increase awareness of stakeholders of changes taking place within organization
Purpose: specify what must be done to attain vision and mission
Characteristics of organizational Goals
time period
time constraints to urge attainment of goals in a period.
Acts as a motivator
challenging but realistic
as an incentive to improve operation
unrealistic causes it to be too easy, may fail to motivate and give up if too hard
crucial issues
select major goals only to assess performance of org
precise and measurable
gives managers a yardstick, standard which they can judge the performance
Organizational objectives
provide direction
aid in evaluation
create synergy
focus coordination
basis for planning, motivating, controlling
reveal priorities
Mintzberg's Intended and realized strategies
Intended Strategy
Conceived by the top management team
result of formal and structured planning process
result of process of negotiation, bargaining, involved many individuals, group within org
Deliberate strategy
Precise and articulated intentions exist in concrete level
organization as collective action, intention must be common knowledge to all actors in the org
collective intention to be realized exactly as intended (no external force interference)
Emergent strategy
decision that emerge from complex processes. managers interpret intended strategy and adapt to changing external circumstances
a sense of purposeful direction
implies org is learning what works in practical
a pattern developed over time in the absence of specific mission and goals, despite them
Realized strategy
A combination of both deliberate, rational planning and spontaneous thinking
actual strategy implemented
a consequence of deliberate strategy and emerging factors