Chapter 2: The managerial process of crafting and executing strategy. After studying this chapter, you should be able to: Grasp why it is critical for company managers to have a clear strategic vision of where a company needs to head and why, understand the importance of setting both strategic and financial objectives, understand why the strategic initiatives taken at various organizational levels must be tightly coordinated to achieve companywide performance targets. | The Managerial Process of Crafting and Executing Strategy 2 Chapter Screen graphics created by: Jana F. Kuzmicki, . Troy State University-Florida and Western Region Chapter Roadmap What Does the Process of Crafting and Executing Strategy Entail? Developing a Strategic Vision: Phase 1 of the Strategy-Making, Strategy-Executing Process Setting Objectives: Phase 2 of the Strategy-Making, Strategy-Executing Process Crafting a Strategy: Phase 3 of the Strategy-Making, Strategy-Executing Process Implementing and Executing the Strategy: Phase 4 of the Strategy-Making, Strategy-Executing Process Initiating Corrective Adjustments: Phase 5 of the Strategy-Making, Strategy-Executing Process Corporate Governance: The Role of the Board of Directors in the Strategy-Making, Strategy-Executing Process Fig. : The Strategy-Making, Strategy-Executing Process Developing a Strategic Vision Involves thinking strategically about Future direction of company Changes in company’s product-market- customer-technology to improve Current market position Future prospects Phase 1 of the Strategy-Making Process A strategic vision is a road map showing the route a company intends to take in developing and strengthening its business. It paints a picture of a company’s destination and provides a rationale for going there. Delineates management’s aspirations for the business – Charts a strategic path for the future “Where are we going?” Steers energies of employees in a common direction Molds organizational identity Is distinctive and specific to a particular organization Avoids use of generic language Triggers strong emotions Is challenging, uncomfortable, nail biting Key Elements of a Strategic Vision The mission statement of most companies focuses on current business activities - “who we are and what we do” Current product and service offerings Customer needs being served Technological and business capabilities A strategic vision concerns a firm’s future business path - “where we are going” | The Managerial Process of Crafting and Executing Strategy 2 Chapter Screen graphics created by: Jana F. Kuzmicki, . Troy State University-Florida and Western Region Chapter Roadmap What Does the Process of Crafting and Executing Strategy Entail? Developing a Strategic Vision: Phase 1 of the Strategy-Making, Strategy-Executing Process Setting Objectives: Phase 2 of the Strategy-Making, Strategy-Executing Process Crafting a Strategy: Phase 3 of the Strategy-Making, Strategy-Executing Process Implementing and Executing the Strategy: Phase 4 of the Strategy-Making, Strategy-Executing Process Initiating Corrective Adjustments: Phase 5 of the Strategy-Making, Strategy-Executing Process Corporate Governance: The Role of the Board of Directors in the Strategy-Making, Strategy-Executing Process Fig. : The Strategy-Making, Strategy-Executing Process Developing a Strategic Vision Involves thinking strategically about Future direction of company Changes in company’s .
