Page 35 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 2: Strategy Formulation and Defining Vision

Corporate vision is a short, succinct, and inspiring statement of what the organisation Notes
intends to become and to achieve at some point in the future, often stated in competitive
terms.

2.4 Keywords

Core Ideology: based on the enduring values of the organisation
Corporate Level Strategy: Involves broad decisions about organisation's scope and direction.

Facilitation Approach: A wide range of people participate in the process of developing and
articulating a vision.
Functional Strategy: Involves decisions about each unit of the organisation.

Leader Dominated Approach: The CEO provides the strategic vision for the organisation.
Pump-priming Approach: The CEO provides visionary ideas and selects people and groups
within the organisation to further develop those ideas.

Strategic Business Area (SBA): SBA is a distinctive segment of the environment in which the
firm wants to do business.
Sustainable Competitive Advantage: getting a substantial edge over the competitors.

Vision: The overall goal of an organisation that all business activities and processes should
contribute toward achieving.

2.5 Self Assessment

Fill in the blanks:

1. Strategy formulation is the process of determining appropriate courses of action for
achieving organisational .....................
2. The most wonderful strategy in the history of the world is useless if not .....................
successfully.
3. Corporate strategy involves ..................... kinds of initiatives.
4. Strategy formulation includes defining the ....................., specifying achievable .....................,
developing ..................... and setting policy guidelines.
5. Corporate vision is a short, succinct, and inspiring statement of what the organisation
intends to ................. and to .................

6. ................. basic characteristics distinguish functional strategies from corporate level and
business level strategies.
7. Competitive Strategy is concerned with creating and maintaining a competitive .................
in each and every area of business.
8. Lack of vision is associated with organisational ................. and .................
9. ..................... of business vision means that it should include innovative possibilities for
dramatic organizational improvement.
10. A business vision should be .....................; it should be able to paint a picture of the kind of
company the management is trying to create.

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