“The strategic management process is the full set of commitment, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns” (Hitt, Ireland, & Hoskisson, 2015, p.5). To succeed with this an organization must do its due diligence to appropriately analyze the situation and make decisions that will have the best impact. This involves, first, conducting an analysis of the external environment and the internal organization. This involves looking at the competitive landscape, technology, globalization, and how you fit into each. The I/O (industrial organization) model of above-average returns “explains the external environment’s dominant influence on a firm’s strategic actions” (Hitt, Ireland, & Hoskisson, 2015, p.14). Another model, the resource-based model of above-average returns “assumes that each organization is a collection of unique resources and capabilities” (Hitt, Ireland, & Hoskisson, 2015, p.17).
Once the analysis is complete, the organization will develop a vision and mission. “Vision is a picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve” (Hitt, Ireland, & Hoskisson, 2015, p.19). This vision should challenge the organization to stretch beyond its perceived limits. This reminds me of goal setting, where the vision is the stretch goal. The mission or mission statement is a more concrete statement describing the business and who it serves.
From this point, we develop and implement strategies effectively to meet the goals and vision of the organization. It is important to note that the work here is never complete. Strategy implementation and evaluation is an ongoing process that is best carried out by strategic, proactive leadership. It is a fluid and ever changing process.
If there is no continuos evaluation of current process, something could be costing a company lost of money, but they would never pin point it. “A strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage,” (Hitt & Ireland, 2015, p. 4). They key word is exploit as there is not way to do this unless there is an evaluation.
Have you found or observed enterprises that lack vision and yet are successful? If so, what propels their success? If not, why have these firms continued to ignore vision in their strategic plans?
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