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Benefits of strategic management
benefits and limitations of strategic planning
company-wide strategic planning
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The Strategic Plan of Able Limited a subsidiary company of Walden International details goals for the next ten years. The plan also encompasses the strategies to achieve our initiative of breaking and leading in the global market and measures by which we will evaluate our progress. This plan is created in consideration of all our stakeholders. The plan will be updated yearly which will enable us to give account of our achievements, need for modification on new mission requirements and how to improve on our performance measurement ways.
Able Limited is a growth oriented company. The need for this strategic initiative is to formulate, implement and ramify our strategies on how to break into the global market and maintain a high proficiency in our operation. The ten-year strategies include attaining core targeted global markets, providing products with differential advantage and obtaining the best product branding position (Evens& Wurster, 1997)
Our Mission is to provide high quality and convinient services but the most important aspect is to achieve great customer satisfaction by incorporating a global marketing mix that will create us a global market niche. Our vision is to provide advanced technology, software and Information Technology (IT) services and communication with a competitive edge in order to be the managing and leading corporation in the global market. Our philosophy is to operate in high levels of integrity and transparency with our highly esteemed customers, suppliers and other stakeholders in a social productive manner. The five year strategic objectives entail how we are going to attain a steady growth and attain at least twenty five percent share of the global market, provision of information systems relate...
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... is exposing of our shortcomings regardless of effect on threat exposed as this will assure transparency to our clients.
In conclusion, successful strategic goal formulation and implementation is therefore important due to the dynamism nature of the business environment. In order for us to break into the global market in style we should act in line with the niches that we have identified in which we are sure to survive and prosper (Locks, 1989).
References
Ernest, D. (2001).Management: Theory and Practice. MC Graw Hill. Kgakusha Press Ltd.
Locks, A. (1989).Relationship of success and expectation to affect on goal seeking tasks. Journal of Personnel Social psychology. pp142-154
Evens, P & Wurster, T. Strategy and the New Economics of Information. Harvard Business Review, 1997.
Kearney, A. (1992). A business process perspective. Kentucky. Kearney Press Inc
Based on Table 4, the major strengths highlighted are the new venture’s experienced and knowledgeable management team and its unique product offering. The MD understands the marketing environment and thus, capitalizing on this opportunity (after assessing its viability in section 3.1) to meet customer demands. However, the major weakness is the lack of funds to market the product so initiate
Most recent theories on motivation conclude that people will start certain behaviors under the belief that this behavior will accomplish desired goals or outcomes. With Lewin (1936) and Tolman (1932) leading the charge, the goal-oriented behavior led researchers to want to understand more on the psychological value people attribute to goals, people’s expectations on reaching these goals, and the structures which keep people striving to achieve these goals. After some recent findings on goal-oriented behavior, researchers were able to differentiate different types of goals, whereas before researchers assumed that goals that were valued the same, with the same expectations of achievement, would need the same amount
Establishing goals is a required skill for management. It encompasses the ability to take into consideration systemic
The theory of goal setting was developed by Edward Locke and Gary Latham (1990) and states that there is a direct relationship between the setting of specific high goals and task performance. A higher degree of employee performance is obtained when specific goals are set compared to the performance achieved when employees are simply told to do their best (Latham & Locke, 2007). These findings have helped shape leadership styles and improve employee performance and job satisfaction (Posthuma & Al-Riyami, 2012).
Various theories emphasize the intents of assigned goals on improving the chances of goal success. Several studies suggest that goals assigned by another person might instill challenge, promote task involvement, increase competence valuation, and feedback (Bandura 1986; Deci & Ryan, 1985; Harackiewicz, 1989). Also, it is important to note that the image of the person who assigns the goals matters a lot in goal acceptance. If a skillful person assigns a goal, it is viewed as a motivating effect, as it ignites the feeling that “an expert has confidence in me, so I must be able to do it” (Elson & Ginis,
The mission statement of the company was “As we grow as a company, it has become more and more important to explicitly define the core values from which we develop our culture, our bran...
However, after reviewing our interview transcripts, and considering my peer’s issue, I believe that Goal Setting Theory would be the most applicable theory for solving my peer’s problem. In 1960s, Edwin A. Locke first proposed this theory, and then this theory has been developed. Locke and Latham referred (1990) that goal specificity is positively related to subsequent performance, and many following studies also indicate that there are a high correlation between these two variables.
In other words, strategic objectives differ from goals/visions in terms of feasibility, practicality, and ultimately implementation. This theme makes its way into essentially every portion of the book, as it is vital to strategy. Often times, strategic planning and strategic thinking is thought to be any action performed by upper management. Rumelt debunks this myth and inserts that these executives are motivating and energizing their employees at best through vague visions and mission statements. Instead, upper-level management should actually focus on opportunities and detail orientated actions to avoid bad strategy. The same logic can be applied to hopeful wishes (over ambitious goals). These goals contain a great deal of uncertainty, as they lack a level of reality and planning. In fact, good strategy should be based off of an educated guess, even if that means you take a stance on an uncertain issue. Rumelt explains, “A new strategy is, in the language of science, a hypothesis, and its implementation is an experiment. As results appear, good leaders learn more about what does and doesn’t work and adjust their strategies accordingly” (Rumelt, 2011, pg. 241). In other words, successful strategists are constantly evaluating and adjusting their original hypothesis to perfect their strategy. This hypothesis allows them to
Locke, E. A., & Latham, G. P. (1990). A theory of goal setting and task performance.
An organisation’s mission is the back bone of all strategic decisions; the mission will have an influence on all activities performed within the organisation, because if they aren’t achieving their mission an organisation is failing. The long term strategic goals of an organisation should directly aim to achieve their mission and these goals are what performance can be measured off. Without specific goals attempting to measure performance is pointless, and identifying who or what the main focus of these goals is the key to optimisation.
Locke, Edwin A., and Gary P. Latham. "New Directions in Goal-Setting Theory." Current Directions in Psychological Science 15.5 (2006): 265-68. Print.
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
Strategic implementation is a critical factor when making decisions regarding issues that affect the vision, mission, or objectives of an organization. Strategies are often implemented in accordance to the culture of the organization, the nature of control systems, the stakeholders, and the nature of the organizational design. In order to achieve success in the implementation of strategies, the structure of these factors must work in coordination with one another. For instance, the strategic vision of CPK lies in the creation of a globally recognized brand name and therefore, all of the goals and objectives of CPK must be directed in realizing that the company achieves this objective (California Pizza Kitchen 2011). Furthermore, the vision statement is inclusive in itself in that it communicates the message in a directional, flexible, and focused manner.
Strategy formulation is the process of establishing the firm's mission, goals, and choosing among alternative strategies or plans; it involves and implies that preparing the best approach to respond to the circumstances of a firm's environment, whether or not its conditions are known in advance; being strategic and tactical, then, means being clear about the management's aims; being aware of the company's resources, and incorporating both into being consciously responsive to a dynamic environment (SM, 2010). As nearly all businesses have limited resources, top leaders and management must determine which alternative plans or strategies will do well to the organization most; strategic management requires attention to the big picture and the motivation to adapt to circumstances, and consists of the following aspects:
It is important for organisations to achieve their goals, as this can assist them to reach a competitive advantage, which is a highly attractive position for a firm to be in.