Friday, 13 December 2019

Unit 2: Strategy Formulation and Defining Vision

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            Unit 2: Strategy Formulation and Defining Vision






Strategic management is the set of managerial decisions and action that determines the way for the long-range performance of the company. It includes environmental scanning, strategy formulation, strategy implementation, evaluation and control.
Strategy formulation is the development of long range plans for the effective management of environmental opportunities and threats in light of corporate strengths and weaknesses.
It includes defining the corporate mission, specifying achievable objectives, developing strategies and setting policy guidelines. Corporate strategy is one, which decides what business the organisation should be in, and how the overall group of activities should be structured and managed.
Competitive Strategy is concerned with creating and maintaining a competitive advantage in each and every area of business. Strategy that is related to each functional area of business such as production, marketing and personnel is called functional strategy.


Corporate vision is a short, succinct, and inspiring statement of what the organisation intends to become and to achieve at some point in the future, often stated in competitive terms. Core Ideology: based on the enduring values of the organisation Corporate Level Strategy: Involves broad decisions about organisation's scope and direction.
Facilitation Approach: A wide range of people participate in the process of developing and articulating a vision. Functional Strategy: Involves decisions about each unit of the organisation. Leader Dominated Approach: The CEO provides the strategic vision for the organisation.
Pump-priming Approach: The CEO provides visionary ideas and selects people and groups within the organisation to further develop those ideas. Strategic Business Area (SBA): SBA is a distinctive segment of the environment in which the firm wants to do business.
Sustainable Competitive Advantage: getting a substantial edge over the competitors. Vision: The overall goal of an organisation that all business activities and processes should contribute toward achieving.


Strategic management is the set of managerial decisions and action that determines the way for the long-range performance of the company. It includes environmental scanning, strategy formulation, strategy implementation, evaluation and control.
Strategy formulation is the development of long range plans for the effective management of environmental opportunities and threats in light of corporate strengths and weaknesses.
It includes defining the corporate mission, specifying achievable objectives, developing strategies and setting policy guidelines.
Corporate strategy is one, which decides what business the organisation should be in, and how the overall group of activities should be structured and managed. Competitive Strategy is concerned with creating and maintaining a competitive advantage in each and every area of business.
Strategy that is related to each functional area of business such as production, marketing and personnel is called functional strategy.


Corporate vision is a short, succinct, and inspiring statement of what the organisation intends to become and to achieve at some point in the future, often stated in competitive terms.


Core Ideology: based on the enduring values of the organisation Corporate Level Strategy: Involves broad decisions about organisation's scope and direction.
Facilitation Approach: A wide range of people participate in the process of developing and articulating a vision.
Functional Strategy: Involves decisions about each unit of the organisation.
Leader Dominated Approach: The CEO provides the strategic vision for the organisation.
Pump-priming Approach: The CEO provides visionary ideas and selects people and groups within the organisation to further develop those ideas.
Strategic Business Area (SBA): SBA is a distinctive segment of the environment in which the firm wants to do business.
Sustainable Competitive Advantage: getting a substantial edge over the competitors.
Vision: The overall goal of an organisation that all business activities and processes should contribute toward achieving.




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