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 organization’s purpose and intent should be clear.

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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.