Strategic Management 2e. Rothaermel Chapter 2 Notes
Strategic management process
1. Strategic Planning
2. Scenario Planning
3. Strategy as Planned Emergence
Strategic Management Method to conceive and implement strategy
Strategic Leadership Executive use of power to influence and direct others
Steps to begin the strategic management process:
1. What do we want to accomplish? What is our vision?
2. How do we accomplish our goals? What is our Mission?
3. What guardrails do we put in place to act ethically and legally as we pursue our vision and mission? What are our values?
Leaders need to begin with an end in mind
2
Mission
description of what an organization actually does -- what its business is -- and why it does it; can be customer-oriented or product-oriented
EX: Teach for America: eliminate educational inequality by enlisting our nation's most promising future leaders in the effort.
EX: Disney: to make people happy
3
Vision it captures the company's aspiration
EX: Teach for America: One day, all children in this nation will have the opportunity to attain an excellent education.
Product Oriented vision statement: Defines a business in terms of a good or service provided.
Customer Oriented vision statement: Defines a business in terms of providing solutions to customer needs. – more flexible – not defining HOW it will be done.
Research shows vision statements and firm performance are associated. A positive relationship is likely to exsist when:
1. Visions are customer oriented
2. Internal stakeholders are invested in defining and revising the vision
3. Organizational structures such as compensation systems are aligned with the companys vision statements.
Without commitment and involvement from top managers the statement is just a value statement.
4
Organizational values ethical standards and norms that govern the behavior of individuals within a form or organization
EX: Teach for America: relentless pursuit of results, sense of possibility, disciplined thought, respect and humility, integrity
1. Strategic Planning
2. Scenario Planning
3. Strategy as Planned Emergence
Strategic Management Method to conceive and implement strategy
Strategic Leadership Executive use of power to influence and direct others
Steps to begin the strategic management process:
1. What do we want to accomplish? What is our vision?
2. How do we accomplish our goals? What is our Mission?
3. What guardrails do we put in place to act ethically and legally as we pursue our vision and mission? What are our values?
Leaders need to begin with an end in mind
2
Mission
description of what an organization actually does -- what its business is -- and why it does it; can be customer-oriented or product-oriented
EX: Teach for America: eliminate educational inequality by enlisting our nation's most promising future leaders in the effort.
EX: Disney: to make people happy
3
Vision it captures the company's aspiration
EX: Teach for America: One day, all children in this nation will have the opportunity to attain an excellent education.
Product Oriented vision statement: Defines a business in terms of a good or service provided.
Customer Oriented vision statement: Defines a business in terms of providing solutions to customer needs. – more flexible – not defining HOW it will be done.
Research shows vision statements and firm performance are associated. A positive relationship is likely to exsist when:
1. Visions are customer oriented
2. Internal stakeholders are invested in defining and revising the vision
3. Organizational structures such as compensation systems are aligned with the companys vision statements.
Without commitment and involvement from top managers the statement is just a value statement.
4
Organizational values ethical standards and norms that govern the behavior of individuals within a form or organization
EX: Teach for America: relentless pursuit of results, sense of possibility, disciplined thought, respect and humility, integrity