4.1 Strategy & strategic management:
Vision statement = what org want to become & where it wants to be in future = “to become a
successful business person”.
Mission statement = aligns org with its vision in terms of its products/services, market &
technology = to “obtain a degree” and “work hard”
Strategies = those actions that you take in order to realise your vision and mission = compiling a
study plan and adhering to due dates in your work environment.
Strategy:
= helps explain things managers & orgs do to fulfil purpose of org
Pursuit of this purpose of vision & mission
Relevant to org as whole, for individual businesses, various functions & for the individual
Fit between org strategies & circumstances in its internal & external environment
Feasible in respect of org resources, skills & capabilities - & resource scarcity
Must be desirable to all stakeholders
Stakeholders = individuals & groups, internally & externally, who has a stake/influence on
business
To ensure sustainability = compete effectively & outperform rivals in a dynamic & turbulent
environment – formulate winning strategy
Winning strategy:
Link org’s internal strengths & weaknesses with external opportunities & threats
Build sustainable competitive advantage = ability to add more value for customers than its rivals
(attain position of relative advantage)
Continuously seek ways to improve org performance {performance = aspects such as profits, job
creation, org goals, objectives etc}
Meet expectation of internal & external stakeholders
Align itself with environmental requirements in a global context
1
, Strategic management
= entails strategic analysis, formulation, implementation & control
STRATEGIC ANALYSIS = Establishment of a clear direction for every business, product/service,
& individual in org
STRATEGY FORMULATON = Creation of means of getting to the required end (Require
creation of strong competitive positions)
STRATEGY IMPLEMENTATION = Excellence in implementation of strategies in order to yield
performance
STRATEGIC CHANGE = Creativity & innovation needed to ensure org is responsive to pressure
of change & strategies improved & renewed (Adapt to changing environment)
STRATEGIC CONTROL = Determine org’s success in attaining its vision, mission, objectives &
goals (Actual results compared to planned results – lead to strategic change)
4.2 The strategic management process:
4.2.1 Strategic analysis:
= determination of current position of org by formulating vision, mission & analysis of the
management environment
DEVELOP A VISION
= statement of what org want to become & where it wants to be in future {clear sense of what org
hopes to become}
A clear vision statement:
Portray future dream of org
Promotes change in org
Forms basis for decision-making & planning
Basis for strategic control
Motivate individuals & facilitates recruitment of talent
Positive consequence for org, its internal & external stakeholders
Advantage of vision statement when clearly communicated by top management:
= Higher level of motivation, job satisfaction, commitment, loyalty, pride, clarity of org’s values &
productivity
2
Vision statement = what org want to become & where it wants to be in future = “to become a
successful business person”.
Mission statement = aligns org with its vision in terms of its products/services, market &
technology = to “obtain a degree” and “work hard”
Strategies = those actions that you take in order to realise your vision and mission = compiling a
study plan and adhering to due dates in your work environment.
Strategy:
= helps explain things managers & orgs do to fulfil purpose of org
Pursuit of this purpose of vision & mission
Relevant to org as whole, for individual businesses, various functions & for the individual
Fit between org strategies & circumstances in its internal & external environment
Feasible in respect of org resources, skills & capabilities - & resource scarcity
Must be desirable to all stakeholders
Stakeholders = individuals & groups, internally & externally, who has a stake/influence on
business
To ensure sustainability = compete effectively & outperform rivals in a dynamic & turbulent
environment – formulate winning strategy
Winning strategy:
Link org’s internal strengths & weaknesses with external opportunities & threats
Build sustainable competitive advantage = ability to add more value for customers than its rivals
(attain position of relative advantage)
Continuously seek ways to improve org performance {performance = aspects such as profits, job
creation, org goals, objectives etc}
Meet expectation of internal & external stakeholders
Align itself with environmental requirements in a global context
1
, Strategic management
= entails strategic analysis, formulation, implementation & control
STRATEGIC ANALYSIS = Establishment of a clear direction for every business, product/service,
& individual in org
STRATEGY FORMULATON = Creation of means of getting to the required end (Require
creation of strong competitive positions)
STRATEGY IMPLEMENTATION = Excellence in implementation of strategies in order to yield
performance
STRATEGIC CHANGE = Creativity & innovation needed to ensure org is responsive to pressure
of change & strategies improved & renewed (Adapt to changing environment)
STRATEGIC CONTROL = Determine org’s success in attaining its vision, mission, objectives &
goals (Actual results compared to planned results – lead to strategic change)
4.2 The strategic management process:
4.2.1 Strategic analysis:
= determination of current position of org by formulating vision, mission & analysis of the
management environment
DEVELOP A VISION
= statement of what org want to become & where it wants to be in future {clear sense of what org
hopes to become}
A clear vision statement:
Portray future dream of org
Promotes change in org
Forms basis for decision-making & planning
Basis for strategic control
Motivate individuals & facilitates recruitment of talent
Positive consequence for org, its internal & external stakeholders
Advantage of vision statement when clearly communicated by top management:
= Higher level of motivation, job satisfaction, commitment, loyalty, pride, clarity of org’s values &
productivity
2
