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8/2/2019 1A2 Vocabulary of Strategy
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4/8/12
STRATEGIC POSITION
Recognize the vocabulary of strategy(2)
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Vocabulary of Strategy:
MissionStrategies are developed in order toachieve desired outcomes.
These outcomes are inherent in theorg.s mission or defining purpose.
The mission guides strategic
decisions and provides values and a
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Vocabulary of Strategy:
MissionMission
- the over-riding purpose of the org.
- Reflects the values/expectations ofstakeholders and answers thequestion what business are we in?
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Vocabulary of Strategy:
MissionASHRIDGE COLLEGE MODELOF MISSION
As per the model, a strong mission as articulated in the mission statement should contain the following 4elements which should be tightlylinked together resonating &reinforcing each other.
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Vocabulary of Strategy:
MissionAshridge Mission Model
Elements of a Mission
1. Purpose
2. Strategy
3. Values4. Policies & standards of behaviour
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Vocabulary of Strategy:
MissionAshridge Mission Model
Purpose
Why does the org. exist? Who does it existfor?
3 categories for the benefit of:
a. Shareholders create wealth
b. All stakeholders satisfy needs
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Vocabulary of Strategy:
MissionAshridge Mission Model
Strategy
Provides the commercial logic for theco.
What is our business?What should it be?
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Vocabulary of Strategy:
MissionAshridge Mission Model
Values
The beliefs & moral principles that liebehind the cos culture.
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Vocabulary of Strategy:
MissionAshridge Mission Model
Policies & standards of behaviour.
Guidance on how the org.s businessshould be conducted.
Guidelines to help people decide
what to do on a daily basis.
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Vocabulary of Strategy:
MissionPurpose of a mission (can be internal/external)
1. Inspire & motivate managers &
employees to a higher level ofperformance.
2. Guide resource allocation in a
consistent manner.
3. Help balance the competing & oftenconflicting interests of various
stakeholders.
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Vocabulary of Strategy:
MissionPurpose of a mission
4. Provide a sense of direction.
5. Promote shared values amongemployees.
6. Refocus the org. during a crisis.
7. Improve corporate performance.
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Vocabulary of Strategy:
MissionImportance of a mission for
corporate strategy
The org. should give seriousconsideration to establishing
a clear concept of itscorporate mission because:
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Vocabulary of Strategy:
MissionImportance of mission for corporate
strategy
a. Customers are not only asking whatdo you sell? but also what do youstand for?. Values are
acknowledged as integral elementsof consumers buying decisions asevidenced by the attention given tothem through advertising, brandbuildin and market research.
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Vocabulary of Strategy:
MissionImportance of mission for corporate
strategy
b. Studies into organizationalbehaviour show that people are
motivated by many things otherthan money. Employees are likely tobe more productive when they feelwhat they are doing has significancebe ond the mere ursuit of a livin .
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Vocabulary of Strategy:
MissionImportance of mission to corporate strategy
c. Some writers believe that there is anempirical relationship betweenstrong corporate values and
profitability.
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Vocabulary of Strategy:
Mission StatementFormal documents that state the
org.s mission.
Published within the org. to promotedesired behaviour:
Support for strategy and purpose
Adherence to core values
Adoption of policies and standards
of behaviour
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Vocabulary of Strategy:
Mission StatementSome are suspicious of missionstatements because:
1.They are often public relationsexercises rather than an accurateportrayal of the firms actual values.
2.They may be full ofgeneralizations which areimpossible to tie down to specific
strategic implications.
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Vocabulary of Strategy:
Mission StatementRole in planning
The mission statement can play an
important role in the strategicplanning process by:
1. Inspiring & informing planning
-to ensure that plans further theorg.s
goals and are consistent with itscore
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Vocabulary of Strategy:
Mission StatementRole in planning
2. Screening
- acting as a yardstick by whichplans are judged.
3. Affecting the implementation of a
planned strategy
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Vocabulary of Strategy:
Vision or strategic intent the future state desired by theorg.s strategists.
They aim to guide the org.s
collective aspiration toward thisfuture state.
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Vocabulary of Strategy:
GoalsA statement of general aimor purpose that supports themission.
May be qualitative in nature.
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Vocabulary of Strategy:
GoalsGoals can be related:
Functionally when collaborating on a
projectLogistically resources shared/used in
sequence
In a wider org.l sense -when senior execsdecide on operational priorities
Hierarchically - in a pyramid structure
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Vocabulary of Strategy:
ObjectivesA more specific aim/purpose
Will probably be quantified
Should be S-M-A-R-T
- Specific
- Measurable- Achievable (attainable)
- Results-focused (relevant)
- -
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Vocabulary of Strategy:
ObjectivesFunctions (P-R-I-M-E)Planning define what the plan is about
Responsibility define the responsibilities ofmanagers & depts.
Integration integrate the efforts of diff. deptsby being consistent & supporting
each other
Motivationso s/b created for all areas ofperformance
Evaluation performance is assessed against
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Vocabulary of Strategy:Goals, Objectives and
TargetsA structure of goals & objectives derive fromthe mission and support it.
All the parts of this structure s/b mutuallysupportive.
An understanding of the org.s mission isinvaluable for setting & controlling the overall
functioning and progress of the org.However, it is possible for an org. to operate
reasonably effectively even if most of theemployees have only an intuitive or vague
understanding of its mission (purpose).
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Vocabulary of Strategy:
Strategic capabilityThe adequacy and suitability of the
resources & competences of an org.
for it to survive and prosper.
Flows from resources &
competences.
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Vocabulary of Strategy:
Business model
describes the structure ofproduct, service andinformation flows between
the parties involved.
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Vocabulary of Strategy:
Strategic controlConsists of two (2) parts:
1. Monitoring the effectiveness ofstrategies & actions
1.Taking corrective action whenrequired
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Vocabulary of Strategy:
Business analysisInvolves:
analyzing the strategic position of an org.,
making strategic choices
and implementing the strategic choice(putting the chosen strategy into action).
StrategicPosition
Strategic
Choices
StrategicAction
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