Strategic Management- Chapter 2
Chapter 2 Objectives
LO 2-1 Explain the role of vision, mission, and values in the strategic management
A vision captures an organization’s aspirations. An effective vision inspires members of the organization
A mission statement describes what an organization actually does- what its business is- and why it does it.
Values define the ethical standards and norms that should govern the behavior of individuals within the firm
LO 2-2 Describe and evaluate the role of strategic intent in achieving long term goals
Strategic intent finds its expression in stretch goals that exceed the firms’ existing resources and capabilities by a large margin.
Effective use of the strategic intent creates at all the levels of the organization an obsession with winning that can help companies ascend to global leadership.
LO 2-3 Distinguish between customer-oriented and product-oriented missions and identify strategic implications
Customer-oriented missions define business in terms of providing solutions to customer needs.
Product-oriented missions define business in terms of a good or service provided.
Customer oriented missions provide managers with more strategic flexibility than product oriented missions.
Even if the customer needs are constant, the organization’s mission should be flexible because the means of meeting those needs can change over time.
LO 2-4 Critically evaluate the relationship between mission statements and competitive advantage
Mission statements can help a firm achieve superior performance, but mission statements by themselves do not directly affect the firm performance.
To be effective, mission statements need to be backed up by hard-to-revenue commitments.
LO 2-5 Explain why anchoring a firm in ethical value is essential for long-term success
Ethical core values enable employees to make day-to-day decisions that are guided by correct principles.
Strong ethical values are the guardrails that help keep the company on track when pursuing
LO 2-1 Explain the role of vision, mission, and values in the strategic management
A vision captures an organization’s aspirations. An effective vision inspires members of the organization
A mission statement describes what an organization actually does- what its business is- and why it does it.
Values define the ethical standards and norms that should govern the behavior of individuals within the firm
LO 2-2 Describe and evaluate the role of strategic intent in achieving long term goals
Strategic intent finds its expression in stretch goals that exceed the firms’ existing resources and capabilities by a large margin.
Effective use of the strategic intent creates at all the levels of the organization an obsession with winning that can help companies ascend to global leadership.
LO 2-3 Distinguish between customer-oriented and product-oriented missions and identify strategic implications
Customer-oriented missions define business in terms of providing solutions to customer needs.
Product-oriented missions define business in terms of a good or service provided.
Customer oriented missions provide managers with more strategic flexibility than product oriented missions.
Even if the customer needs are constant, the organization’s mission should be flexible because the means of meeting those needs can change over time.
LO 2-4 Critically evaluate the relationship between mission statements and competitive advantage
Mission statements can help a firm achieve superior performance, but mission statements by themselves do not directly affect the firm performance.
To be effective, mission statements need to be backed up by hard-to-revenue commitments.
LO 2-5 Explain why anchoring a firm in ethical value is essential for long-term success
Ethical core values enable employees to make day-to-day decisions that are guided by correct principles.
Strong ethical values are the guardrails that help keep the company on track when pursuing