MARKET 1 Lecture Notes - Lecture 16: Strategic Planning, Scenario Planning, Cost Leadership
Document Summary
The first step in the strategic management process are to define a firm"s vision, mission, and value. Strategic management: method put in place by strategic leaders to conceive and implement a strategy, which can lay the foundation for a sustainable competitive advantage. Strategic leadership: executives" use of power and influence to direct the activities of others when pursuing an organization"s goal. To answer questions about vision, mission and values, strategic leaders need to be with the end in mind. (you need to know where you want to steer the boat. ) Basing actions on its vision, a firm will build the necessary resources and capabilities to translate into reality what begins as a stretch goal. Vision: a statement about what an organization ultimately wants to accomplish; it captures the company"s aspiration. A truly meaningful and inspiring vision makes employees feel they are part of something bigger. This is highly motivating and can improve financial performance.
