ECON 1 Lecture Notes - Lecture 19: Strategic Management, Strategic Planning, Cost Leadership
Document Summary
Strategic management process: method put in place by strategic leaders to formulate and implement a strategy, which can lay the foundation for a sustainable competitive advantage. Strategic leadership: executives" use of power and influence to direct the activities of others when pursuing an organisation"s goals. The first step in this process is to define a firm"s vision, mission, and values. Vision: a statement about what an organization ultimately wants to accomplish; it captures the company"s aspiration. Strategic intent: what an organisation strives for. (stretch goal) Building on the vision, organizations establish a mission, which describes what an organization actually does the products and services it plans to provide, and the markets in which it will compete. A vision defines what an organization wants to accomplish. A mission describes what an organization does; it defines the means by which vision is the verb to.
