ISSUES FOR REVIEW AND DISCUSSION

QUESTION 2 Compare and contrast the activities involved in strategy formulation versus strategy implementation. Strategy Formulation 1) Developing company's vision and mission statement Strategy Implementation (Action Stage) 1) Requires a firm to establish annual objectives, Device policies organization, Motivate Employees and Allocates Resources so that formulated strategies can be executed 2) Developing a strategy-supportive-culture, Creating an effective organizational structure

2) Identifying an organization's external opportunities and threat

3) Determining internal strength and weaknesses 3)Redirecting marketing efforts 4)Establishing long term objectives of an organization 5) Generating alternative strategies 6) Choosing particular strategies to pursue 7) ISSUES Deciding what new businesses to enter, What new businesses to abandon , How to allocate resources, Deciding on either to expand operations or diversify, whether to enter international market, Whether merge or form a joint venture and how to avoid hostile takeover 8) Strategist must decide which alternative strategies will benefit the form most 9) Strategy-formulation decisions commit an organization to specific products, markets, resources, and technnologies over an extended period of time 10) Strategies determine long-term competitive advantages 4) Preparing Budgets for organization 5) Developing and utilizing information systems 6) Linking employee compensation to organizational performance 7) Miost difficult stage in strategic management on mobilizing employees and managers to put formulated strategies into action

8) Requires personal dicipline, commitment, and sacrifice. 9) Succesful strategy implementation hinges upon managers' ability to motivate employees, which is more an art than science 10) Need interpersonal skills (critical strategy),and all the activities affect all employees and managers in an organization. Every department must decide on answers to question such as What must we do to implement our part of the organization

QUESTION 5 Compare and contrast vision versus mission statement. Vision statment 1) Vision statement is often considered as the first step in strategic planning 2) Answer the question What do we want to become? Mission statement 2) Mission statement will be done after vision statement 2) Answer the qestion What is our business?

3) As enduring statements of purpose that 3) Many vision statements are a single sentence. distinguish one business from other similar firms For example, the Dell's vision is to create a comppany culture where environmental 4) It identifies the scope of a firm's operations in excellence is second nature. product and market terms 5) A clear mission statement describes the values and priorities of anorganization 6) Compels strategiststo think about the nature and scope of present operations and to assess the potential attractiveness of future markets and activities 7) A mission statement broadly charts the future direction of an organization and as constant reminder to its employees of why the organization exists and what the founders envisioned 3) Exmple for misson statement of P&G: Proctor & Gamble will provide branded products and services of superior quality and value that improves the lives of the world's consumers. As a result, consumers will reward us with industry leadership in sales, profit, value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.