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Chapter 1

The document outlines the role of a CEO in strategy development, resource allocation, and leadership while emphasizing the importance of vision and mission in organizational objectives. It discusses the meaning and limitations of strategic management, the characteristics of objectives, and the differences between vision and mission. Additionally, it highlights the benefits of strategic management, including providing direction and enhancing competitive advantage.

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4 views3 pages

Chapter 1

The document outlines the role of a CEO in strategy development, resource allocation, and leadership while emphasizing the importance of vision and mission in organizational objectives. It discusses the meaning and limitations of strategic management, the characteristics of objectives, and the differences between vision and mission. Additionally, it highlights the benefits of strategic management, including providing direction and enhancing competitive advantage.

Uploaded by

travadifatema110
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

ROLE OF CEO

 Development of strategies
o Whole org.
o Individual business
 Allocation of resources
 Vision, Mission, Goal
 What business it should be in
 Leadership
 Guardian for shareholder

MEANING OF SM
The art and science of formulating, implementing and evaluating cross- functional decisions
that enables an org. To achieve its objectives

LIMITATIONS OF SM
 Costly
 Time consuming
 Enviroment is highly complex & turbulent
 Competitive scenario- diff. to estimate competitive responses

PROACTIVE+REACTIVE
Planned Strategy Adaptive Strategy
Proper planning and set procedures Unanticipated enviroment
Work in predetermined manner Change in enviroment

MEANING OF OBJECTIVES
Objectives are organisation performance targets, the results and outcomes it want to
achieve.

CHARACTERISTICS OF OBJECTIVES
 S – Specific
 M – Measurable
 A – Achievable
 R – Realistic / Result-oriented
 T – Time-bound
 Controllable
 Challenging
 Correlate with each other

VISION & MISSION


Basis Vision Mission

Meaning Vision is the future desired state Mission is the present purpose of the
of the organization – “What the organization – “Why the organization
organization aspires to become.” exists and what it does.”

Time Horizon Long-term (future-oriented) Medium to long-term (current + near


future)

Focus Focuses on what the Focuses on how the organization will


organization wants to achieve achieve its vision.
ultimately.

Nature Abstract, inspirational, guiding. Concrete, practical, action-oriented.

Purpose Provides a dream, direction, and Defines the scope of business,


inspiration for stakeholders. operations, customers, and approach.

Question “What do we want to become?” “What is our business and why do we


Answered exist?”

Formulation Usually short, crisp, motivational More detailed, defines key products,
(a statement of aspiration). markets, and activities.

Example (ICAI Vision: “To be the most trusted Mission: “To design, manufacture,
type) global furniture brand by 2035.” and deliver affordable, high-quality
furniture that enhances customer
lifestyles.”

ICAI Exam Helps in strategic planning by Provides a roadmap for day-to-day


Usage setting the long-term destination. activities to achieve the vision.

BENEFITS OF SM
2DFCEP

 Direction to the company


 Proactive instead of reactive
 Framework for all major decisions
 Futuristic
 Corporate Defense Mechanism
 Enhance Longevity
 Developing Core Competence and Competitive Advantage

MEANING OF STRATEGIC DECISION MAKING

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