MGM101H5 Lecture Notes - Lecture 7: Pest Analysis, Perfect Competition, Oligopoly
25
MGM101H5 Full Course Notes
Verified Note
25 documents
Document Summary
The long term success of an organization is based on two fundamental principles: ability to create a strategic direction and market position (strategic plan, ability to execute the core tactical initiatives within the plan. Development of a business strategy means making decisions and determining direction in 6 key areas: purpose. Mission- the organization"s fundamental purpose/reason for existence; mission statement identifies the company"s broad goals. Example: walmart"s mission state is helping people save money so they can live better . Vision- a forward thinking statement that defines what a company wants to become and where it is going. Example: walmart"s vision is to become the worldwide leader in retailing: markets. Specific markets/market segments the business sees itself competing in. Markets that represent opportunities for future growth and enhanced profitability will receive greater managerial attention and resource support. Harvesting- strategy that reflects a reduced commitment to a particular market given its perceived weak future growth or profitability potential: products and services.
