Chapter 2 example #12516

A strategic plan lays out a company's future direction, performance targets and strategy.

describes "where we are going" management's aspirations for teh company and the course and direction charted to achieve them.

Describes the scope and purpose of it's present business (who we are, what we do, and why we are here.)

are the beliefs, traits, and behavioral norms that the firm's personnel are expected to display in conducting the firm's business and pursuing its strategic vision and mission.

are an organization's performance targets—the specific results management wants to achieve.

Stretch objectives set performance targets high enough to stretch an organization to preform at it's full potential and deliver the best possible results.

A company exhibits strategic intent when it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective.

relate to the financial performance targets management has established for the organization to achieve.

relate to target outcomes that indicate a company is strengthening its market standing, competitive position, and future business prospects.

The Balanced Scorecard is a widely used method for combining the use of both strategic and financial objectives, tracking their achievement, and giving management a more complete and balanced view of how well an organization is performing.

Establishes an overall game plan for managing a set of businesses in a diversified multi business company.

is strategy at the single-business level, concerning how to improve the performance (strengthening the company's market position) or gain a competitive advantage in a particular line of business (in a single-business company or in a single business unit of a diversified multi business corporation).

Lays out its future direction, business purpose, performance targets, and strategy.

concerns the approaches employed in managing particular functions within a business-like research and development, production, procurement of inputs, sales and marketing, distribution, customer service, and finance.

concerns the relatively narrow approaches for managing key operating units (e.g. plants, distribution centers, purchasing centers) and specific operating activities with strategic significance (eg. quality control, materials purchasing, brand management, internet sales)