Marketing operations accounting human resources o Develop functional strategies

Marketing operations accounting human resources o

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Marketing, operations, accounting, human resources o Develop functional strategies in their area that help fulfill the strategic objectives set by business- and corporate-level managers THE STRATEGY-MAKING PROCESS Model and steps. What are the 5 steps? What are the components of each step? 1. Select corporate mission and major corporate goals a. Mission: what the company does—reason for existence i. Who is being satisfied ii. What is being satisfied iii. How customer needs are being satisfied b. Vision: lays out some desired future state—what the company wants to achieve i. Stretch a company by articulating an ambitious but attainable future state ii. Provide direction for the company iii. Inspire and generate commitment from organizational members c. Values: how managers and employees should conduct themselves how they do business i. What kind of organization they should build to help a company achieve its mission ii. Organizational culture: set of norms and standards that control how employees work to achieve organization’s mission and goals d. Major goals: measureable desired future state an organization attempts to realize i. Precise and measurable—provide yardstick/standard to judge performance ii. Address crucial issues—a limited number of key goals helps maintain focus iii. Challenging but realistic—provide employees with incentive for improving iv. Specify time period—motivates/injects sense of urgency into goal attainment 2. Analyze external competitive environment to identify opportunities and threats in organization’s operating environment that will affect how it pursues its mission a. Industry environment i. Competitive structure of industry ii. Competitive position of the company
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Mgt 405, Fall 2015 iii. Competitiveness and position of major rivals b. Country or national environment c. Socioeconomic or microenvironment i. Social, legal, governmental, international, technological 3. Analyze organization’s internal environment to identify strengths and weaknesses a. Company’s resources and capabilities b. Company-specific competencies 4. SWOT Analysis and Business Model a. SWOT analyses identifies strategies that align company resources/capabilities to environment to create/sustain competitive advantage b. Functional strategies should be consistent with and support company business level/global strategies i. Functional-level strategy—directed at operational effectiveness ii. Business-level strategy—overall competitive theme iii. Global strategy—expand/grow/prosper at global level iv. Corporate-level strategy—maximize profitability and profit growth 5. Implement the strategies a. Implementation/execution of strategic plans b. Design best organization structure, culture, control systems c. Governance system for legal/ethical compliance d. Consistency with maximizing profit and profit growth 6. Feedback Loop a. Monitor strategy execution i. Determine strategic goals/objectives being achieved ii. Evaluate competitive advantage is being created and sustained
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