MGM101H5 Chapter Notes - Chapter 7: Enterprise Risk Management, Strategic Planning, Market Analysis
thomasjalarcon and 38454 others unlocked
25
MGM101H5 Full Course Notes
Verified Note
25 documents
Document Summary
The long term success of an organization is based on two fundamental principles: ability to create a strategic direction and market position (strategic plan, ability to execute the core tactical initiatives within the plan. Development of a business strategy means making decisions and determining direction in 6 key areas: purpose. Mission- the organization"s fundamental purpose/reason for existence; mission statement identifies the company"s broad goals. Example: walmart"s mission state is helping people save money so they can live better . Vision- a forward thinking statement that defines what a company wants to become and where it is going. Example: walmart"s vision is to become the worldwide leader in retailing: markets. Specific markets/market segments the business sees itself competing in. Markets that represent opportunities for future growth and enhanced profitability will receive greater managerial attention and resource support. Harvesting- strategy that reflects a reduced commitment to a particular market given its perceived weak future growth or profitability potential: products and services.