B&S chap.12
Strategy formulation
- Integrating knowledge of the environment, vision, and mission with the core competence. - To attain synergy and create customer value.
Strategic Management
- Set of decisions and actions used to formulate and implement specific strategies. - Achieves a competitively superior fit between the organization and its environment to achieve goals.
Strategy
General plan of action that describes resource allocation and other activities for: -Dealing with the environment -Helping the organization attain its goals
Mission
Organization's core broad purpose and reason for existence.
The Domain of Strategic Leadership
Vision, mission, strategy, and mechanisms for execution
Strategic Leadership
- Anticipate and envision the future - Maintain flexibility - Think strategically - Initiate changes that will create a competitive advantage for the organization in the future
Developing Effective Strategy
Actively listen to people both inside and outside the organization. Examine trends and discontinuities in the environment and use them. Study past events and anticipate the future. Use hard analysis to help set a course for the future. These are examples of
Vision
Attractive, ideal future that is credible yet not readily attainable.
Value
Combination of benefits received and costs paid by the customer
Elements of Strategy
Core competence, Synergy, and Value
Tools for Strategy Execution
Create ongoing communication, Teach why certain actions are taken, Explain the changes and allay people's fears, and remind employees about company strengths.
Self-reference
Imprinting each element with an understanding of the whole that serves the goal of the whole system.
Synergy
Interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Strategy execution
Putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals.
Core competence
Something the organization does extremely well in comparison to competitors
