Key Terms in Strategic Management • Reduce uncertainty
• Minimize conflicts
1. Competitive Advantage
2. Strategists
• Stimulate Exertion
3. Vision and Mission Statements:
• Aid in allocation of resources
4. External Opportunities and Threats • Aid in design of jobs
5. Internal Strengths and Weaknesses • Provide basis for consistent decision
6. Long-Term Objectives making
7. Strategies
8. Annual Objectives
Characteristics of a Mission Statement:
9. Policies
1. Broad in scope, does not include monetary
amounts, numbers, percentages, ratios or
Examples of Global Challenge: objectives.
2. Fewer than 150 words in length
• Health Problems 3. Inspiring
• Women Empowerment 4. Identifies the utility of a firm’s products
• Energy Source 5. Reveals that the firm is environmentally
• Science and Technology responsible
6. Reveals that the firm is socially
• Climate Change
responsible
• Social Factions
7. Includes the nine components
8. Reconciliatory
9. Enduring
Examples of social responsibility:
9 Components of a Mission Statement
• Reducing carbon footprints
• Improving labor policies 1. Customers – who are the firm’s customer?
• Charitable giving 2. Products or services – what are the firm’s
• Volunteering in the community major products or services?
3. Markets – geographically, where does the
firm compete?
Characteristics of Objectives: 4. Technology – is the firm technologically
current?
• Quantitative 5. Survival, growth and profitability – is the
• Measurable firm committed to growth and financial
• Realistic soundness?
• Understandable 6. Philosophy – what are the basic belief,
• Hierarchical values, aspirations, and ethical priorities
• Obtainable of the firm?
• Congruent across departments 7. Self-concept – what is the firm’s major
competitive advantage?
8. Public image – is the firm responsive to
social community and environmental
Benefits of having clear objectives: concerns?
9. Employees – are employees a valuable
• Provide direction by revealing expectations asset of the firm?
• Allow synergy
• Assist in evaluation by serving as standards
• Establish priorities
