Once a firm has set its objectives, it then must turn to the question of how it will achieve them. A business-level strategy is the framework a firm uses to organize its activities, and it is developed by the firm’s top managers. Examples of business-level strategies include cost leadership and differentiation. These strategies are pursued by businesses with a single product or a range of products. For example, imagine that you own a coffee shop. You aren’t Starbucks—you are a local shop in Read More
How Strategies Emerge
While we have been discussing strategy and strategizing as if they were the outcome of a rational, predictable, analytical process, your own experience should tell you that a fine plan does not guarantee a fine outcome. Many things can happen between the development of the plan and its realization, including (but not limited to): The plan is poorly constructedCompetitors undermine the advantages envisioned by the planThe plan was good but poorly executed. You can probably imagine a number Read More
Mission & Vision in Strategy Development
Mission and vision statements play three critical roles: Communicate the purpose of the organization to stakeholdersInform strategy developmentDevelop the measurable goals and objectives by which to gauge the success of the organization’s strategy. These interdependent, cascading roles, and the relationships among them, are summarized in the figure. First, mission and vision provide a vehicle for communicating an organization’s purpose and values to all key stakeholders. Stakeholders Read More