11-10-2012, 04:16 PM
The Managerial Process of Crafting and Executing Strategy
The Managerial Process.ppt (Size: 7.2 MB / Downloads: 123)
Chapter Roadmap
What Does the Process of Crafting and Executing Strategy Entail?
Developing a Strategic Vision: Phase 1 of the Strategy-Making, Strategy-Executing Process
Setting Objectives: Phase 2 of the Strategy-Making, Strategy-Executing Process
Crafting a Strategy: Phase 3 of the Strategy-Making, Strategy-Executing Process
Implementing and Executing the Strategy: Phase 4 of the Strategy-Making, Strategy-Executing Process
Initiating Corrective Adjustments: Phase 5 of the Strategy-Making, Strategy-Executing Process
Corporate Governance: The Role of the Board of Directors in the Strategy-Making, Strategy-Executing Process
Key Elements of a Strategic Vision
Delineates management’s aspirations for the business
Provides a panoramic view of “where we are going”
Charts a strategic path
Is distinctive and specific to a particular organization
Avoids use of generic language that is dull and boring and that could apply to most any company
Captures the emotions of employeesand steers them in a common direction
Is challenging and a bit beyond a company’s immediate reach
Role of a Strategic Vision
A well-conceived and well-communicated vision functions as a valuable managerial tool to
Give the organization a sense of direction, mold organizational identity, and create a committed enterprise
Inform company personnel and other stakeholders what management wants its business to look like and “where we are going”
Spur company personnel to action
Provide managers with a reference point to
Make strategic decisions
Translate the vision into hard-edged objectives and strategies
Prepare the company for the future
Recognizing Strategic Inflection Points
Sometimes an order-of-magnitude change occurs in a company’s environment that
Dramatically alters its future prospects
Mandates radical revision of its strategic course
Critical decisions have to be made about where to go from here
A major new directional path may have to be taken
A major new strategy may be needed
Responding quickly to unfolding changes in the marketplace lessons a company’s chances of
Becoming trapped in a stagnant business or
Letting attractive new growth opportunities slip away