Strategic Management Term paper
The mission statement is essential to the overall strategy in that it is used when generating long term and short-term objectives (Kokemuller, 2014). Actionable steps all of which make up the overall strategy of the company are then generated to achieve the set objectives. The vision statement on the other hand paints a picture of how the future will look in case the organization achieves its mission. A good vision statement, that is both realistic and attractive encourages members of the organization to be committed so as to realize the vision. In essence, it bridges the present with the future while establishing excellence. The leadership team is responsible for setting objectives and ensuring that they are met (Barney and Hersteley, 2010) They oversee the rest of the team, guide where necessary and maintain the team’s focus on achieving the mission and vision.
In general, it is the leadership of the organization that comes up with vision and outlines the overall strategy required to see the vision through. Rather than expanding the organization to whichever areas where profit can be obtained, the leadership ensures the organization establishes a strategic position. They also communicate this strategy both internally as well as externally to customers, who will value the strategy. Moreover, leadership helps boost morale and spirits of the employees hence ensure that they remain committed to the strategy. Another force is the customer power where one considers how easily the buyers can make one lower prices, the number of buyers present and how much they buy (Porter, 2008). With few customers one has less power but as their number increases, so does their power.
Also, there is a force called the threat of substitution which refers the likelihood of a customer finding another way to do what you do, hence making one irrelevant. If substituting one is cheap and easy then their position is weakened. Lastly, there is the threat of new entry where if it is easy to do so, then one’s position can easily be compromised. Such a culture fosters commitment and promotes productivity within the organization which in turn ensure that the set objectives are met. A culture of unity and cooperation will facilitate implementation of the strategy by aligning goals. This happens when the culture helps people focus on productivity and achieving the mission. A good alignment between culture and the strategy enables an organization to work well within the global marketplace.
When there is a good culture within the organization, the leaders can work well both individually and as a team to ensure that the set goals and objectives are met, hence promoting the overall strategy. The imitability of products means competitors could easily enter the market and reduce sales of the company. Vulnerability of databases lead to security concerns particularly among customers. The next element is opportunities and these are the external strategic factors that can promote growth and increase the organization’s profits (Speth, 2015). The company’s opportunities are further diversification of the business, development of new products and fostering innovation. By developing new products, the company can get new income sources. References Barney, J. B. , & Hesterly, W. S. Strategic management and competitive advantage: Concepts.
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