Unit 11.5 Flashcards
Micheal Porter business strategy
Deliberate, methodical
Henry Mintzberg business strategy
Emerges over time
Michael Porter known for…
many of the frameworks used in business today
Henry Mintzberg known for…
a maverick among academics, an approach to strategy development called Strategy as Planned Emergence
“Sound Strategy starts with having the right goals.”
- Michael Porter
Business Strategy (def)
The goal directed activities to achieve competitive advantage
As goals cascade down the organization…
they become more specific and have shorter planning time frames
If goals are properly developed and effectively communicated…
they will be effective in aligning the plans throughout the organization
For goals to be effective, they need to be…
properly stated at each level of the organization
SMART Goal Acronym
Specific, Measurable, Attainable, Relevant, Time
Financial Goals (list)
- Profitability
- EPS
- Revenues
- Capital Market Value (Share Price)
Strategic Goals (list)
- Markets
- Product Development
- Financial Resources
- Operational Productivity
- Manufacturing
- Research and Innovation
- Human Resources
- Social Responsibility
- Sustainability
Strategic Goals (Def)
Goals that are specific to the divisional operations in functional areas of the business.
- Typically in Marketing, Product Development, Financial and Human Resources, Operational Areas, and Operational Productivity
By achieving strategic goals…
the organization will achieve its overall profitability goals
A common management control tactic is to…
develop a score card that highlights progress toward achieving strategic goals
