Strategic Business Management And Planning

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Strategic business management and planning
Chapter 1 –understanding the role of strategic planning in organisations

1.2 Strategic management is a way of formulating, implementing and evaluating, cross – functional decisions that enable an organisation to achieve its objective. It ensures that employees and other stakeholders are working towards common goals, establishes agreement around intended outcomes/results, and assesses and adjusts the organization 's direction in response to a changing environment. The purpose of strategic management is to exploit and create new opportunities, to foresee business value in the future, to eliminate the possible risks in the environment, and to look for the changing market trends.
Mission and vision statements are a process of which an organisation realises its goals and values.
A vision statement realises a firms direction and what it would like to become in years to come. It is also used to inspire, focus and stretch performance of a company’s employees and stakeholders. A vision statement is often relatively short and concise making it easy to be remembered, but in some rare occasions vision statements can be longer. The most affective vision statements are when a CEO involves a range of people including managers, employees, suppliers and customers to develop it. A vision statement should also clearly involve the conditions of firm’s internal and external environments. A vision provides a foundation for a company’s mission.
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