The company must engage in strategic planning with clear objectives and evaluate both internal and external situations to formulate strategies and make adjustments as needed. Goals and objectives provide the foundation for strategic planning. Goals are the outcome statements that needed to be accomplished. On the other hand, objectives are precise, clear, understandable, and directly support the completion of the goals. The first step is reviewing your company’s vision and mission statement.
A company’s strategy is management`s action plan for running the business and conduction operations. (Thompson, A. A., Strickland III, A. J., & Gamble, J. E. 2007, p.3). The performance of an organization depends on how effective it is in converting a strategy into execution. Implementation is the key to being competitive and sustainable, given an appropriate strategy.
Businesses are fighting for customers. However, to be able to reach those customers, firms need to set strategies. Reference for Business states it in these words:”Organizational strategies are the means through which companies accomplish their missions and goals, (n d). Successful strategies address four elements of the setting within which the company operates: (1) the company's strengths, (2) its weaknesses, (3) the opportunities in its competitive environment, and (4) the threats in its competitive environment (n d). so, if firms are set strategies to stand you also ought to bring value to your organization to stand in the crowd, recall that thousands of people are fighting for the position you are dreaming about!
By using the three main categories for Corporate Strategy which is stability, growth and retrenchment would guide the corporations toward its goal and objective. The advantage of corporate strategy in connection with the corporation’s goal and objectives is that a corporation can gain financial advantage if it enters into a joint venture or acquires other companies it can increase profits, cash flow and borrowing power. Another strategy is functional strategy. This is used to maximize resource productivity and achieve corporate and business unit objectives and strategies. It is concerned with developing and nurturing a distinctive competence to provide the corporation with competitive advantage.
outcome and feedback loops to redirects to strategic and operational issues. In successfully Team based organization the complete focus is not only on teams but also highlights the essential role of the managers. Form a strategic vision: Rapidly growing technology and global competition are making the organizations implement new ways to gain competitive advantage. In this new technological era one company masters a new technology and the other company makes the technology advanced. So there is need to catch the flexible changes in the market to meet the customers’ expectations which is essential in drafting organizational strategy.
More so, it helps get buy-in by the staff for the need to change. Every employee needs to know what’s wrong with the current processes for them to embrace change. The second stage is to make the changes and deploy as you guide the teams through the adoption of the changes (Levasseur, 2001). At this stage communication, support, and education are vital. It is essential to carry out the training on the new ways of doing things for the employees to adequately understand.
Changing circumstances may necessitate a change in direction and stubbornness and fixed ideas can frequently be the enemy of business leaders. Business strategy is all about developing a viable plan for sustained business growth, possibly diversifying into new markets or cross selling to existing customers. Adequately qualified senior executives tend to have clear views of what their business strategy means. Good strategies are not glossy documents produced to be stacked on shelves to collect dust, but rather to be communicated, executed and monitored. Leaders are expected to champion and drive the process of strategy execution by putting the strategy into action; after all the strategy does not mean anything unless it is fully communicated throughout the
Thus, one might start with a perspective and conclude that it calls for a certain position, which is to be achieved by way of a carefully crafted plan, with the eventual outcome and strategy reflected in a pattern evident in decisions and actions over time. Mintzberg’s typology has support in the earlier writings of others concerned with strategy in the business world, most notably, Kenneth Andrews, a Harvard Business School professor and for many years editor of the Harvard Business Review. kenneth Andrews presents this lengthy definition of strategy in his book, The Concept of Corporate Strategy , as "Strategy is the pattern of decisions in a company that determines and reveals its objectives, purposes, or goals, produces the principal policies and plans for achieving those goals, and defines the range of business the company is to pursue, the kind of economic and human organization it is or intends to be, and the nature of the economic and non-economic contribution it intends to make to its shareholders, employees, customers, and communities. (pp.18-19). "Andrew’s definition obviously anticipates Mintzberg’s attention to pattern, plan, and perspective.
(Management Principles, 2012) The text’s definition of strategy compares as they both mention strategy needs to take place to accomplish a goal or objective. They differ as the website goes more in to the business side of strategy regarding creating a competitive advantage, versus, the text mentions strategy in a general sense (which means it can be applied to any organization.) Strategy can be applied to any goal. All it takes is critical thinking and
QUESTION 1 Explain why organisations should have a clear corporate purpose. (25 marks) Once upon a time, many companies used to lay out their corporate purpose for their operations only in compliance to a fiduciary requirement arising from their incorporation. Over time, the term “corporate purpose” has come to be more widely used by companies. The writer is going to explain why organisations have gone “beyond compliance” and have a clear corporate purpose. Terms to be defined “ corporate purpose” Definition of terms Mazutis et al (2015:9) defined corporate purpose as: “ a company’s core "reason for being.” It is the organization’s single underlying objective that unifies all stakeholders and embodies its ultimate role in the broader