define the term mission and the question it answers
basic purpose of existence of the company.
‘why do we exist?’
state 3 characteristics of a mission
- infinite language (verbs in infinite form)
- involves little to no fantasy elements
- better short than long
define the term vision and the question it answers
a picture of the company in the future.
‘what do we see?’
state 5 characteristics of a vision
- creative and ambitious, yet achievable
- finite language (selected timeframe)
- can involve elements of fantasy
- very clearly formulated
- better short than long
define the term strategic objectives and what question they anser
end results of planned activities.
‘what is to be accomplised? in what time?’
what prerequisites should strategic objectives meet?
- specific (clear, understandable)
- measureble (quantified in € and time)
- achievable (motivating, but attainable)
- relative (hierarchy)
- time-bound (defined due date)
- not mutually exclusive (in conflict with each other)
- written
what are the two approaches to defining strategic objectives?
- integral (top-down)
- first, whole company objectives are defined, then smaller ones
- should be used whenever there is a big change - incremental (bottom-up)
- first, partical objectives are defined of functional and business fields, then the whole company
- should be used when the issue is concerning a specific area a general manager wouldn’t know much about
what is the next step after defining the objectives?
to check whether a strategic gap exists = gap between the current performance and the desired performance (defined by objectives). if it exists, a new strategy is needed.
define the term strategy
a master plan of how the company will achieve its vision and strategic objectives
define the term strategy formulation
development of long-range strategic plans for effective expoloitation of S, minimisation of W, and reaction to O and T
