Managing Strategy Dasari Lingam Bharat Kumar

CHAPTER-4 STRATEGIC PURPOSE (Preci)

Corporate governance, stake holders expectations, business ethics and culture

are the main factors which influenced expectations and purpose pof an organisation.
Corporate governance is concerned with the structure and systems of control by which
managers are held accountable to those who have legitimate stake in the organisation.

Stake holders are those individuals or groups who depend on organisation to

fullfill their own goals and on whom inturn the organisation depends. The decision
manager make about their purpose and stratgey are influenced by organisations by
stakeholders expectations. Although they may be in agreement about the broad
purpose of an organisation at a more detail level there are usually different expectations
among different stakeholders. Stake holders mapping helps in understanding political
priorites there are also ethical dimensions to the purpose of an organisation at a
organisational level. This takes the form of instance on corporate social responsibility
culture consist of layer of values and beliefs taken for granted assumptions and way of
doing things in an organisation. The cultural web helps in understanding how these
connect and influence stratgey.

The organisational purpose are defined through the statement of corporate

values, vision, mission and, objectives

A vision statement is concerned with what the organisation aspires to be where

as a mission statement aims to provide employee and stake holder clarity about the
overall purpose of existance of the organisation. The objectives of an organistaion are
statements of specific outcomes that are to be achevied.

The corporate values of the organistion are the underlying principles that guide
and organisations stratgey. Expressint the organisation stratgic purpose through the
statements of values, vision, mission, and objective is one of the important managerial
tasks that deffines the success or failue of an organisation

25th January 2011

ID: 471335