Establishing Organization Direction (Crafting a Strategy (Never-ending,…
Establishing Organization Direction
Developing a Strategic Vision/Mission
Develop strategic vision
Use mission statement as a starting point.
Communicate the vision in a clear and exciting manner.
Who we are?
Where are we going?
How will we get there?
How will we measure our performance?
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.
Establishing Financial and Strategic Objectives
To improve financial performance
To improve long-term, competitive business position
Characteristics of 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.
Crafting a Strategy
Never-ending, ongoing task
Separate level of strategy must be unified into a cohesive, company-wide action plan
Evolves over time
Factors Shaping a Company's
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
Linking Strategy with Ethics
Must follow the law.
Should involves issues of duty.
A Firm's Ethical Responsibilities to Its Stakeholders