Untitled Flashcards Set

Corporate strategic goals = long term

Departmental/ tactical = mid term

Team/ operational = 1 year or less

Mission statements

• A unique broad declaration of the basic purpose and scope of the organization that distinguishes it from others

• Several sentences to a few pages

What should be included

• Customer - what market are we in

• Product - what do we produce

• Location - where do we operate

• Underlying philosophy - what difference do we want to make in the world

• Should talk about stakeholders and mention how they are going to serve them

Goals

• Specific - clearly defined

• Measurable - quantitative or qualitative

• Actionable - must be given recourses to be able to achieve the goal

• Reasonable - shouldn’t be too unrealistic

• Timetabled - clearly defined time period for goal

Plans

Single use plans

• Plans that are developed to achieve a set of goals that are unlikely to be repeated in the future

• Program - covers the whole event

• Projects - smaller, portions of the program

• Budgets - financial incentives

Standing plans

• Ongoing plans used to provide guidance for tasks performed repeatedly in the organization

• Standard procedures - disciplinary, recruitment

• Rules - no smoking etc.

Strategy

• Taking a long term view to see the big picture

• Strategic thinking positively affects an organizational performance and financial success

• Should happen at all levels of an organization

• Strategic management = set of decisions and action used to implement strategies that will provide an organization with competitive advantage in its environment

• Strategic management involves an explicit strategy which is an action plan providing long term direction and guiding the use of its recourses to accomplish organizational goals

• Making sure that all streams of decision making is aligned with the long term goals and direction of the organization.

Competitive advantage

• Operating in a successful way that is difficult for competitors to imitate

• What sets organizations apart from each other

• Sustainable competitive advantage is consistently dealing with market and environmental forces better than competitors

Basic concepts of strategy

• Strategic intent - focusing all organizational resources and energies on unifying and compelling goals

• Developing new strategies and strategic plans capable of delivering future competitive advantage

• 1st step

• Evaluate the organization

SWOT

Scan internal environment

• Identify strengths and weaknesses

Scan external environment

• Look for opportunities and threats

Porters - Competitive advantage strategies

• Differentiation - how can better in the market

• Cost leadership - how much cheaper

• Focused differentiation - in a smaller market

• Focused cost leadership - in a smaller market

Product life cycle

A series of stage that a product goes through during the life of its marketability

• Introduction - use differentiation and gaining a market presence

• Growth - use differentiation and gaining a market presence

• Maturity - uses focus and cost leadership strategies.

• Decline - uses defender or analyzer strategies

• Introduction costs a lot due to high development costs and low sales

• Become profitable during growth and maturity phase

• New product should be developed when old product reaches growth phase

• This is to prevent underlap where no product is making money