Chapter 2 - Generating strategic options: Mission, vision, values and stakeholders Flashcards
What is a mission?
Fundamental objective of an entity expressed in general terms
What is a mission statement?
Published statement, apparently of the entity’s fundamental objectives.
What is the purpose of a mission statement?
Communicate to all stakeholder groups
Help develop a desired corporate culture
Assist in strategic planning
What are the criticisms of mission statements?
May not represent actual values of the organisation
Often vague
Often ignored
Become quickly outdated
What is a vision statement?
Identifies ideal position that the company wants to reach. Essentially the long ter aspirations
What are the values of an organisation?
Core ethics or principles which the organisation will abide by
What are objectives?
More specific and seek to translate the mission into a series of mileposts for the organisation
What does SMART stand for?
Specific
Measurable
Attainable
Relevant
Timed
What are primary objectives?
Major, overriding objectives of the organisation
What are secondary objectives?
Directly relate to the various strategies that the organisation needs to adopt in order to meets its primary objective
What is a strategic network?
collection of different organisations that are seperate in legal terms but which work collectively to try to achieve long term strategic advantage
What is a strategic platform?
Transfer of goods or services between provider and consumer can take place
What are the different types of sources that stakeholder power can arise from?
Positional power
Resource power
System power
Expert power
Personal power
What are the four ways to resolve conflicting stakeholder objectives according to Cyert and March?
Satisficing
Sequential attention
Side payment
Exercise of power
What is a non-market strategy?
Organisations relationship and interactions with its ‘non-market’ environment
What is corporate political activity?
Involvement by an organisation in the political process, with the aim of obtaining certain policy preferences
What are the different forms of CPA?
Lobbying
Directorships
Influencing public opinion
Donations
Associations
Legal action
