Summary Chapter 11

Chapter 11
Strategy and Strategic Management
 Vision Statement
o Describes what the organisation wants to become and where it wants to be in future
 Mission Statement
o Describes how an organisation will get to where it is heading.
o Reflects an organisation’s reason for being (products / services, market and
technology)
 Strategy
o The pursuit of the purpose.
o Helps to explain the things that managers and organisations do in order to fulfil the
purpose of the organisation
 Strategic Management
o Entails strategic analysis, strategy formulation, strategy implementation and strategic
control


A Winning Strategy
 Links an organisation’s internal strengths and weaknesses with opportunities and threats
from its external environment
 Builds a sustainable competitive advantage for the organisation
 Continuously seeks ways to improve organisational performance
 Meets the expectations of external and internal stakeholders
 Aligns itself with environmental requirements in a global context



The Strategic Management Process
 Strategic analysis
 Strategy formulation
 Strategy implementation
 Strategic control

, Strategic analysis
The determination of the current position of the organisation by formulating a vision, mission and
analysis of the management environment
 Develop a vision
 Develop a mission
 Analyse the environment
o SWOT
o Strengths
 Aspects of organisational operations that represent a potential competitive
edge
o Weakness
 Area of organisational operations that are in need of change or improvement
o Opportunities
 Environmental variables that can improve an organisation’s competitive
position
o Threats
 Environmental variable that hinder an organisation to survive or be
successful