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Management (20)
33:620:301 (19)
Xi Wang (11)

Management Ch 2 Notes.docx

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Xi Wang

Intro to Management Chapter 2 Notes Charting a Company’s Direction: its Vision, Mission, Objectives, and Strategy Crafting and executing a strategy consists of five steps: 1) Developing a strategic vision and a mission statement, as well as core values 2) Setting objectives 3) Crafting a strategy 4) Executing the strategy 5) Monitoring developments, evaluating performance, and correcting problems a) A strategic plan maps out where a company is headed, establishes strategic and financial targets, and outlines the competitive moves and approaches to be used in achieving the desired business results. 1) Task 1: developing a strategic vision, a mission statement, and a set of core values - Top management’s views and conclusions about the company’s long term direction and what product market customer mix seems optimal for the road ahead constitute a strategic vision for the company - Provides rationale as to why this direction makes sense for the company - Well-conceived visions are distinctive and specific to a particular organization - For a strategic vision to function as a valuable tool, it must convey what management wants the business to look like and provide managers with a reference point in making decisions - Why does a sound strategic vision matter? Because it 1) crystallizes senior executives’ own views, 2) it reduces risk of rudderless decision making, 3) it is a tool for winning support of organization members to making vision a reality, 4) it provides guidance for lower level managers for setting objectives, and 5) it helps organization prepare for future - A mission statement describes the enterprise’s present business and purpose; it is purely descriptive, whereas a strategic vision speaks of the company’s future course of action; it is aspirational - Mission statement identifies company’s products/services, specifies buyer needs it will satisfy and customer groups/markets it serves, and gives the company its own identity - The values of a company are the beliefs, traits, and behavioral norms that management has determined should guide the pursuit of its vision and mission 2) Task 2: setting objectives - The purpose of setting objectives is to convert the vision and mission into specific performance targets - Well-stated objectives are quantifiable (measureable) and contain and deadline for achievement - Measureable objectives help focus efforts and align actions throughout organization, serve as yardsticks for tracking progress, and motivate employees to expend greater effort and perform at a higher level - Need to make STRETCH objectives - A company exhibits strategic intent when it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective - Financial objectives communicate management’s goals for financial performance - Strategic objectives are goals concerning a company’s marketing standing and competitive position
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