ECON 1 Lecture Notes - Lecture 14: Lpl Financial, Vertical Integration
Document Summary
Leaders of firms fail to appreciate the necessity of having a simple, clear, succinct strategy statement that everyone can internalize and use as a guiding light for making difficult choices. A well-understood statement of strategy aligns behavior within the business allows everyone in the organization to make individual choices that reinforce one another, rendering all employees exponentially more effective. Need to be crystal clear about them. Single, precise objective that will drive the business over the next five years of so. It is unlikely that even two companies in the same business will have the same strategic objective if this is the case, you have a shitty strategic objective. Encompasses three dimensions: customer or offering, geographic location, vertical integration. Clarity about what makes the firm distinctive is what most helps employees understand how they can contribute to successful execution of its strategy.
