THE VISION:
Definition
The vision provides long-term direction. It is a commitment to a dream. It
involves asking “what do we want to be like in a few years?” It reflects
management’s aspirations for the organization and its business.
Importance of a Vision:
Without a vision, companies are prone to drift aimlessly and lose any claim to
being an industry leader. Managers need to think strategically about the impact
of new technologies, how customer needs and expectations are changing, and
what will it take to overtake competitors. Thus, the vision serves as a beacon to
guide resource allocation and also as a basis for crafting a strategy to get the
company where it needs to go.
THE MISSION
SETTING OBJECTIVES
Importance
Types:
1
Financial – signals commitment to growth earnings, return on investments,
dividend growth
CRAFTING A STRATEGY
The focus is what will it take to develop the needed organizational capabilities
and to reach the targeted objectives on schedule. It includes thefollowing
principal aspects
Motivating people in ways that induce them to purse the target objectives
energetilly
Tying the reward structure to the achievement of targeted results, creating a
company culture and work climate conducive to successful strategy
implementation and executive; exerting internal leadership
Good strategy execution involves creating a strong “fit” between the way things
are done internally and what it will take for the strategy to succeed.
2
Evaluating Performance, Monitoring New Developments, and Initiating Corrective
Adjustments
3
Promote development of a constantly evolving business model
4
performance. Business history shows that high-performing
enterprises often initiate and lead, not just react and defend. They
launch strategic offensives to out-innovate and out-maneuver
rivals and secure sustainable competitive advantage, then use their
market edge to achieve superior financial performance. Aggressive
pursuit of a creative, opportunistic strategy can propel a firm into a
leadership position, paving the way for its products and services to
become the industry standard. High-achieving enterprises are
nearly always the product of astute, proactive management, rather
than the result of lucky breaks or a long run of good fortune.
STRATEGIC VISION
5
market position it should try to occupy, and the business activities to
be pursued constitute a strategic vision for the company.