Strategic Management Fundamentals Explained

Aug 22, 2024

Introduction to Strategic Management

Key Points:

  • Importance of Vision and Mission:

    • Vision is for the future, it states where we want to reach.
    • Mission is for the present, it states what we do and why we do it.
    • Understanding the difference between vision and mission is essential.
  • Example:

    • Amazon's Vision: "To be the most customer-centric company."
    • Mention of visions and missions of other companies.

Objectives and Goals:

  • Objectives:
    • These are yearly targets and should be SMART (Specific, Measurable, Achievable, Relevant, Time-bound).
  • Goals:
    • Long-term targets, like for 2-5 years.

Benefits of Strategic Management:

  • Proactive Creation:
    • It makes companies proactive rather than reactive.
  • Increasing Longevity:
    • Enhancing business longevity by analyzing the environment.

Levels of Strategy

  • Corporate Level:
    • Primarily guided by the Board of Directors and C-level executives.
  • Business Level:
    • Different business units such as Retail and Digital Services.
  • Functional Level:
    • Various departments such as Production, Finance, and Marketing.

Limitations of Strategic Management:

  • Complexity:
    • High complexity level of the environment.
  • Time and Cost:
    • High time and cost involved in preparing strategy.

Combination

  • Importance of Values:
    • Vision, mission, goals, and objectives are only achieved when our values are strong.
  • Importance of Intent:
    • The organizationтАЩs purpose and intent should be clear.

These notes encapsulate the topic of Introduction to Strategic Management. Questions can be asked based on this, specifically on the difference between vision and mission and their examples.