ECON 1 Lecture Notes - Lecture 11: Serendipity, Vision Statement, Real Options Valuation
Document Summary
Strategic management process = the method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage; follows the analyse-formulate-implement strategy framework. To begin the strategic management process, managers ask the following questions: Values: how do we accomplish our goals: visionary organisations. Vision = statement about what an organisation ultimately wants to accomplish; captures the company"s aspiration. Vision statements should be forward-looking and inspiring to provide meaning for employees when pursuing the organisation"s ultimate goals: forming strategic intent. Strategic intent = the staking out of a desired leadership position in the long term that far exceeds a company"s current resources and capabilities. Challenging goals that stretch an individual or an organisation can lead to higher performance. Strategic intent allows managers to operationalize their vision because it is not only forward-looking and future-oriented but also helps in identifying steps that need to be taken to make a vision become a reality.
