MGM101H5 Chapter Notes - Chapter 7: Strategic Planning, Bargaining Power, Pest Analysis

• School: UTM
• Department: Management
• Course: MGM101H5
• Professor: Dave Swanston

Document Summary

Chapter 7 notes developing a business strategy. One of the most important responsibilities of senior management team. Long term success predicated on two principles: ability to define and create a strategic direction and market position for the organization (strategic plan, ability to execute the plan. Business strategy all about understanding what opportunities exist in marketplace and which ones should be pursued. Based on this; managers decide upon path of action to capitalize on opportunity chosen. Development of business strategy means making decisions and determining factors in areas: purpose, markets, products and services, resources, business system configuration, responsibility and accountability. Purpose; refers to mission of organization and vision its managers have for business. Mission; defines organization"s purpose or reason for existence: usually identify broad goals around which company was formed. Mission statements + ethics, policies and statements = direction and activities of business. Vision; forward thinking statement that defines what company wants to become and where it is going markets.