global business environment
Chapter 2 Charting a Company’s Direction: Vision and Mission, Objectives, and Strategy
CHAPTER 2
CHARTING A COMPANY’S
DIRECTION: VISION AND MISSION,
OBJECTIVES, AND STRATEGY
CHAPTER SUMMARY
Chapter 2 presents an overview of the managerial ins and outs of crafting and executing company strategies.
Special attention is given to management’s direction-setting responsibilities – charting a strategic course, setting performance targets, and choosing a strategy capable of producing the desired outcomes. The chapter also examines which kinds of strategic decisions are made at what levels of management and the roles and responsibilities of the company’s board of directors in the strategy-making, strategy-executing process.
LECTURE OUTLINE
I. Introduction – Crafting and executing a strategy are the heart and soul of managing a business enterprise.
II. What Does the Process of Crafting and Executing Strategy Entail?
1. Crafting and executing a company’s strategy is a five-phase managerial process:
a. Developing a strategic vision of the company’s long term direction, a mission that describes the company’s purpose, and a set of values to guide the pursuit of the vision and mission.
b. Setting objectives and using them as yardsticks for measuring the company’s performance and progress. c. Crafting a strategy to achieve the objectives and move the company along the strategic course that management has charted.
d. Executing the chosen strategy efficiently and effectively.
e. Monitoring developments, evaluating performance, and initiating corrective adjustments in the company’s vision and mission, objectives, strategy, or execution in light of actual experience, changing conditions, new ideas, and new opportunities.
2. Figure 2.1, The Strategy-Making, Strategy-Executing Process, illustrates this process.
III. Task 1: Developing a Strategic Vision, A Mission Statement, and a Set of Core Values
1. Developing a Strategic Vision
a. Top
CHAPTER 2
CHARTING A COMPANY’S
DIRECTION: VISION AND MISSION,
OBJECTIVES, AND STRATEGY
CHAPTER SUMMARY
Chapter 2 presents an overview of the managerial ins and outs of crafting and executing company strategies.
Special attention is given to management’s direction-setting responsibilities – charting a strategic course, setting performance targets, and choosing a strategy capable of producing the desired outcomes. The chapter also examines which kinds of strategic decisions are made at what levels of management and the roles and responsibilities of the company’s board of directors in the strategy-making, strategy-executing process.
LECTURE OUTLINE
I. Introduction – Crafting and executing a strategy are the heart and soul of managing a business enterprise.
II. What Does the Process of Crafting and Executing Strategy Entail?
1. Crafting and executing a company’s strategy is a five-phase managerial process:
a. Developing a strategic vision of the company’s long term direction, a mission that describes the company’s purpose, and a set of values to guide the pursuit of the vision and mission.
b. Setting objectives and using them as yardsticks for measuring the company’s performance and progress. c. Crafting a strategy to achieve the objectives and move the company along the strategic course that management has charted.
d. Executing the chosen strategy efficiently and effectively.
e. Monitoring developments, evaluating performance, and initiating corrective adjustments in the company’s vision and mission, objectives, strategy, or execution in light of actual experience, changing conditions, new ideas, and new opportunities.
2. Figure 2.1, The Strategy-Making, Strategy-Executing Process, illustrates this process.
III. Task 1: Developing a Strategic Vision, A Mission Statement, and a Set of Core Values
1. Developing a Strategic Vision
a. Top