MGB 4013 - Week Two

Hello friends! In this entry I will write about the second lecture of the subject. In this lecture, we've learnt two topics where Chapter One is The Nature of Strategic Management and Chapter Two is The Business Vision and Mission.


Chapter One - The Nature of Strategic Management

Basically the strategic management process consists of three stages:

1. Strategy formulation that includes developing a vision and mission, identifying an organization's opportunities and threats, and determining the strengths and weaknesses as known as SWOT analysis, generating strategies and choosing particular strategies to be done. This strategy formulation including;

• Deciding the new businesses to enter,
• What businesses to abandon,
• How they can allocate resources,
• Whether to expand the operations,
• Whether to enter international markets,
• Whether to form a joint venture, and
• How to avoid a hostile takeover.

2. Strategy implementation requires a firm to establish their annual objectives, devise policies, motivate employees, and allocate resources so that the formulated strategies can be executed and it is also called as the action stage.

3. Strategy evaluation is defined as reviewing external factors that are the bases for current strategies, measuring performance, and taking the corrective actions to the strategy.

As in the first chapter, we covered all topics that we will learn in the Strategic Management throughout the semester briefly. So, figure 1.1 shows a comprehensive strategic management model while figure 1.2 shows the benefits to a firm that does strategic planning in their business.  

Chapter Two - The Business Vision and Mission

In this chapter, we were explained that a vision statement should answer the basic question, that is, "what do we want to become?" as the vision statement should be short, differ from the mission statement as it is a declaration of an organizations --"reason for being" and answering the important question --"what is our business?" and it is an essential for effectively establishing objectives and formulating strategies.


There are 9 mission statement components as following;

1. Customers
2. Products or services--how we entertain our customer
3. Markets
4. Technology--to produce product(quantity with quality)
5. Concern for survival, growth, and profitability
6. Philosophy
7. Self-concept
8. Concern for public image--its related with CSR(corporate service resposibility) 
9. Concern for employees

I think, tingtong. hihi. This is what i can share about the second week of lecture. Enough saying for this time entry i guess. see you next time! :)