MARKET 1 Lecture Notes - Lecture 10: Strategic Management, Henry Mintzberg, Cost Leadership
Document Summary
Strategic management process: method put in place by strategic leaders to conceive and implement a strategy, which can lay foundation for sustainable competitive advantage. Strategic leadership: executives" use of power and influence to direct others" activities when pursuing organisation"s goals: defining goals, putting systems/structures in place. Vision and mission strategic leaders begin with the end in mind, think about the future. Difference between visions in for-profit and nonprofit sector for-profit: success primarily measured by financial performance. Visionary companies: aspirational goals, not only financial: often competitive advantage, often outperform in long run. Meaningful and inspiring vision makes employees feel like part of something bigger (motivation) Improves financial performance: what an organization wants to accomplish ultimately ( to ) Mission: what an organization actually does ( by : builds on the vision, products and services the company plans to provide, markets it plans to compete in. Strategic commitments: costly and long-term-orientated actions, difficult to reverse: back up visions and missions.
