A corporate entity needs a vision because “where there is no vision, the people perish”(Proverb 29:18). This quotation from the holy writ aptly captures the essence of vision both at individuals and corporate level. Vision is important in that it guides and perpetuates corporate existence. Vision is viewed as a mental picture of a compelling future situation. It originates from creative imagination, the act or power of perceiving imaginative mental images or foresightedness. Corporate vision could be thought of as related to intuition. This is, however, not to eliminate other sources of corporate vision. Corporate vision can be associated with external agencies imposition of strategy or vision and, they can be deliberately formulated as part of strategic planning process. Notwithstanding Continue reading
Strategic Management Terms
Economic Environmental Scanning
Firms that anticipate economic change and identify the constituents through which that change will be applied; can better adapt goals and action plans. Shareholder expectations of financial return are dictated in part by alternative investments and their associated return and risks. Interest rates, tax policies, shareholder incomes, availability of funds for margin-purchased equity investments, and expectations of future economic circumstances will shape changes in equity investor profiles and/or the financial performance expectations of the firm’s owners. Personal income, savings, employment, and price-level trends can have dramatic effects on the attractiveness of a firm’s products or services in output markets–not only final markets, but intermediate markets as well. Similarly, total sectoral outputs, movements in private-sector capital replacement and expansion, government spending, Continue reading
The Importance of Mission and Vision Statements
The corporate strategy starts through Vision and Mission Statements can be accessed by culture, core values and its core values on which it competes. Mission statement shows the exact purpose of the organization. This statement is primary objective of the organization to show the plans, aims and programs of the company. A mission statement is bit different from the vision statement. Â A clear mission statement also focus on what are the advantages which is you are offering to your patrons as well as consumers it also tells you exact purpose of your organization. A good mission statement is like a born of success for the organization. It is very for the companies to find out the ways and also do Continue reading
Corporate Parenting Strategy
The complexity of transitional business conditions creates a need for creating value through aggregation of different businesses in complex corporate enterprise, which gives it the character of a multi-business firm. Businesses could be defined as being whatever the enterprise chooses to operate as organizationally separate profit-responsible units. Such business entities are often referred to as Strategic Business Units (SBUs) and they are organized as largely separable businesses with control over the main strategic levers that affect their performance. Besides this organizational definition, the businesses could be defined in economic sense relating to Strategic Business Opportunities (SBOs), which are clusters of product-market transactions able to sustain a successful focused business, with financial independence. Processes of merger, acquisition, divestment, and the other Continue reading
Organizational Performance – Meaning, Definition and Measures
Managers are concerned with organizational performance–the accumulated end results of all the organization’s work processes and activities. It’s a complex but important concept, and managers need to understand the factors that contribute to high organizational performance. After all, they don’t want (or intend) to manage their way to mediocre performance. They want their organizations, work units, or work groups to achieve high levels of performance, no matter what mission, strategies, or goals are being pursued. Managers measure and control organizational performance because it leads to better asset management, to an increased ability to provide customer value, and to improved measures of organizational knowledge. In addition, measures of organizational performance do have an impact on an organization’s reputation. Managers at high-performing Continue reading
Business Tactics
Business Tactics are specific operating plans which are part of and fit into the larger strategic plan. In warfare, tactics are plans made to fight and win battles. Strategy is the larger set of plans to win wars. Similarly business tactics can be viewed as short term plans to achieve smaller goals – also called targets- and are part of a larger strategic plan to achieve long term goals. A useful way of viewing tactics is to consider them as linking elements between strategy formulation and strategy implementation. There are two types of primary tactics viz. Timing Tactics and Market Location Tactics. Timing refers to the order in which a firm makes market moves in relation to its competitors. A Continue reading