Essay on Sowt Analysis

6318 Words Mar 31st, 2008 26 Pages
Strategic MT Study Sheets

Chapter 1

A strategy consists of competitive moves and business approaches used by managers to run the company. It is their action plan to grow the business, attract and please customers, compete successfully, conduct operations and to achieve target levels of organizational performance. It needs to appeal to customers and to help the company carve out its own market position. It uses efficiency and effectiveness to guide a company using as few resources as possible. It deals with initiatives.

Strategic management is setting a company’s strategy to differentiate itself within the industry and developing a competitive advantage, as well as altering it as needed.

A company achieves a sustainable
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It lays out the company’s strategic course in preparing for the future. It should demonstrate management’s aspirations for the business, provide a view of “where are we going”, charts a strategic path, is distinctive and specific to the organization, steers the employees and is a bit beyond the company’s immediate reach.

A good strategic vision is graphic, directional, focused, flexible, feasible, desirable and easy to communicate. Its shortcomings include being vague, not forward-looking, too broad, bland, not distinctive and too reliant on superlatives.

While a strategic vision deals with a firm’s future path, the mission statement focuses on its present. It looks at who we are, what we do, and why we are here. It gives a company its current identity to distinguish it from other companies. “How to make a profit?”

A good strategic vision crystallizes an organization’s long-term direction, reduces risk, creates a committed enterprise, keeps strategy-related actions of all managers on a common path and helps an organization plan for the future. To meet its strategic vision, a company will create a statement of values. This

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