Mission and purpose

• What is strategy?


  The picture of the future that we wish and the way to achieve it
• What is the process of strategy?


  We set a purpose, we make analysis, we make choice (how we will achieve the purpose) and we implement (make the planned actions real)
• Main reasons why it is good to have a strategy:

  1. Avoid strategic drift
  2. Survive turbulent environments
  3. Avoid organizational fragmentation
• Describe turbulent environment:

  It is opposite to 4s: Static, single, simple and safe
• What is organizational fragmentation?


  When different parts of organization pursue different goals
• Vision - Idea of what an entity should become, which has an inspirational tone:

  "Best company in the industry"
• Mission - concretize in general terms main aims of an entity, what it wants to achieve and why it exists:

  IKEA "Make design affordable"
• Objectives - Goals for achieve for the business to make the mission real.
• How to formulate the objectives?

  SMART:

  Specific

  Measurable

  Agreed with those who must attain them

  Realistic

  Time-constrained
• How much types of missions there are?

  2: Profit maximization and social or other aims

  But profit maximization has subclasses:

  Pure, tempered and indirect PM
• What is tempered profit maximization?

  When the firm is generally oriented to maximize profit, but has other mission to achieve - employers welfare, for example
• What is indirect profit maximization?

  Defense of interest of members, for example, as trade assosiations do.
• Who is stakeholder?


  An person or group that have interest in the strategy and/or will be impacted by its application.
• Main groups of stakeholders:

  Owners

  Employees

  Customers

  Suppliers

  Regulators

  etc, etc.
• Steps of stakeholders mapping:

  1. Identification
  2. Categorization
  3. Investigation (of relationships)
• Stakeholders power:

  Amount of control over something
• Stakeholder's power/interest matrix:

  We can differentiate stakeholders to 4 groups based on their control and interest in some project:

  1. Manage closely (High p, high i)
  2. Keep informed (Low p, high i)
  3. Keep satisfied (High p, low i)
  4. Monitor (Low p, Low i)