S2: Vision, Mission & Competitive Advantage Flashcards
What is strategy?
It is a set of commitments and actions that exploit your core competencies to create a sustainable competitive advantage
What are some competitive success factors? (4)
- Have an entrepreneurial mindset (core values, vision & mission)
- Oriented toward market and customer needs (what do people want, market research)
- Effective use of valuable competencies
- Offer new & innovative products & services
Why is strategy important?
- defines the organization (purpose, etc.)
- where to focus your effort
- provide consistency within your products & services
- position or set direction within environment
What are the steps of the strategic process?
1- Strategy formulation: Analyze the current context (where do you wanna go, where to compete?)
2- Analysis: Evaluate the firm’s capabilities, etc. (what means do we have? How do we compete?)
3- Strategy implementation: Formulate strategy & implement (what do we do to get there? how do we execute?)
4- Performance: control, monitor and modify along the way (are we there yet? can we do something another, better way?)
What is a vision?
Big picture of what the firm wants to be and expects to achieve in the future (end goal)
How to know if a vision is good? (5)
- stretches and challenges its people
- reflects firm’s values and aspirations
- includes all stakeholders
- recognizes the firm’s internal and external environment
- supported by decisions and actions
How to know if a vision is good? (5)
- stretches and challenges its people
- reflects the firm’s values and aspirations
- includes all stakeholders
- recognizes the firm’s internal and external environment
- supported by decisions and actions
What is a mission?
more concrete, near-term focus on current products markets & customers -> what should you do to achieve your vision?
How to know if a mission is good? (2)
- specifies the firm’s potential competitors & the customers it will serve
- should be inspiring and relevant to all stakeholders
