STRATEGIC MANAGEMENT - CHAPTER 4

The first task in the process of strategic management is to formulate the organization's vision and mission statements. These statements define the organizational purpose of a firm. Together with objectives, they form a "hierarchy of goals."

• Business Vision

• Vision

• Leader-dominated Approach

• Pump-priming Approach

• Facilitation Approach

can be defined as "a mental image of a possible and desirable future state of the organization. (Bennis and Nanus)

• Business Vision

• Vision

• Leader-dominated Approach

• Pump-priming Approach

• Facilitation Approach

It is "a vividly descriptive image of what a company wants to become in future".

• Business Vision

• Vision

• Leader-dominated Approach

• Pump-priming Approach

• Facilitation Approach

Every organization needs to develop a _____ of the future. A clearly articulated ___ molds organizational identity, stimulates managers in a positive way and prepares the company for the future.

• Business Vision

• Vision

• Leader-dominated Approach

• Pump-priming Approach

• Facilitation Approach

"The critical point is that a vision articulates a view of a realistic, credible, attractive future for the organization, a condition that is better in some important ways than what now exists."

• Business Vision

• Vision

• Leader-dominated Approach

• Pump-priming Approach

• Facilitation Approach

It, therefore, not only serves as a backdrop for the development of the purpose and strategy of a firm, but also motivates the firm's employees to achieve it.

• Business Vision

• Vision

• Leader-dominated Approach

• Pump-priming Approach

• Facilitation Approach

They listed some important characteristics of an effective vision statement

• Thompson and Strickland

• Parikh and Neubauer

They pointed out the several advantages accrue to an organization having a vision.

• Thompson and Strickland

• Parikh and Neubauer

The CEO provides the strategic vision for the organization.

• Leader-dominated Approach

• Pump-priming Approach

• Facilitation Approach

This approach is criticized because it is against the philosophy of empowerment, which maintains that people across the organization should be involved in processes and decisions that affect them.

• Leader-dominated Approach

• Pump-priming Approach

• Facilitation Approach