Establishing Organization Direction
Developing a Strategic Vision/Mission
Establishing Financial and Strategic Objectives
Crafting a Strategy
Factors Shaping a Company's
Linking Strategy with Ethics
Develop strategic vision
Financial Objective
To improve financial performance
Strategic Objectives
To improve long-term, competitive business position
Use mission statement as a starting point.
Communicate the vision in a clear and exciting manner.
Important questions
Who we are?
Where are we going?
How will we get there?
How will we measure our performance?
Managerial value
Crystallizes long-term direction.
Reduces risk of rudderless decision making.
Convey organization purpose and identity.
Help organization prepare for the future.
Linking the vision with company values.
Characteristics of Objectives
S.M.A.R.T
Short-range objectives
Long-range objectives
Targets to be achieved soon
Serve as stair steps for reaching long-range performance.
Targets to be achieved within 3 to 5 years.
Prompt actions that will permit reaching targeted long-range performance later.
Never-ending, ongoing task
Separate level of strategy must be unified into a cohesive, company-wide action plan
Evolves over time
Corporate strategy
Action-oriented
Business strategy
Functional strategy
Operating strategy
External Factors
Internal Factors
Social, political, regulatory and community factors
Competitive conditions and industry attractiveness
Company opportunities and threats to company's well-being
Resource strengths, capabilities and weaknessess
Influences of key executives
Shared values and company culture
Must follow the law.
Should involves issues of duty.
A Firm's Ethical Responsibilities to Its Stakeholders
Owners/shareholders
Employees
Customers
Suppliers
Community