Everything you need to know about strategy, mission, vision, and value

Strategic management

the utilization or planned allocation of resources to implement major initioations takied by executives on behalf of stakeholders to improve performance of firms in an environment

-the overall process used by strategists to engage in the analysis, formulation, and implementation (AFI framework) of major goals and objectives in order to acheive competitive advantage

strategy

-mastering strategy is part art part science

-involves goals and objectives that an org needs to achieve to be successful in the parket place

-to develop these goals you need strategic managment

-strategy = higher level, broad goal, without a lot of specifics, long term in nature, direction for org to move toward

-stratego = army leader; stratego= destroying ones enimies through the effective use of resrouces

-the goal directed activities a frim takes to grow and sustain competitive advantage over their rivals

-not a zero sum gaime, requires trade off

-being different, creating value wile containing cost, deciding what to do and what not to do combines a set of activities to stake out a unique posture and requires long term comitments that are not easily reversable

competitive advantage

use strategic resources in a different way in order to achieve victory

-sun tzu—> winning a battle with out fighting is the best way to win

-a firms ability to generate above average returns relative to that firms competitors

-just because a firm is profitable does not mean that it has competitive advantage

-figure out why do some firms outperform others? Want a sustainable competitive advantage, outperform its competitors or the industry avg over a prolonged period

competitive disadvantage

when a firm generates below average returns

competitive parity

generating average returns

first step in gaining and sustaining competitive advantage

orgs vision, mission, and values

organizations vision

describes what the org hopes to become in the future

-well constructed visions clearly articulate an orgs aspirations

-describes what the org hopes to become in the future. visions highlight the values and aspirations that lay in the heart of an organization

organizations mission

grounded in the past and present

-a mission outlines the reasons for the orgs existance and explores what role it plays in society

-ideentity/who we are/why should stakeholders support the organization

-the umbrella under all strategic managment occurs

Values

the small set of guiding principles that are idetified as crucial to firms well being

-what important and what is not appropreciated

-guides behavior of every individual

AFI

analysis= diagnosis of the competitive challange

formulation= guiding policy to address competitive advantage

implimentation= set of coherant actions to implement the firms guiding policy

strategic positioning

a unique position within an industry that allows the firm to provide value to customers while containing costs

-combine key strategies

-different activities or activities in a different way

strategic intent

stategic goal

-why vision is important

-staking out lieadership position that exceeds wher you are right now

mission statemtn

how vision is accomplished

-describes what org actually does