TO: Ron Bassini

FROM: Cristian Blejeru

DATE: November 23, 2009
SUBJECT: Chapter 2
The Managerial Process of Crafting and Executing Strateg
Crafting and exeuting a ompan!"s strateg! is a five#phase managerial proess:
$% &eveloping a strategi vision of 'here the ompan! needs to head and 'hat its future
produt#ustomer#mar(et#tehnolog! fous should be%
2% )etting objetives and using them as !ardsti(s for measuring the ompan!"s
performane and progress%
3% Crafting a strateg! to ahieve the desired outomes and move the ompan! along the
strategi ourse that management has harted%
*% +mplementing and exeuting the hosen strateg! effiientl! and effetivel!
,% -onitoring developments and initiating orretive adjustements in the ompan!"s long
term diretion, objetives, strateg!, or exeution in light of the ompan!"s atual
performane, hanging onditions, ne' ideas, and ne' opportunities%
. strategic !ision is a road map sho'ing the route a ompan! intends to ta(e in developing and
strengthening its business% +t paints a piture of a ompan!"s destination and provides a rationale
for going there%
/or a strategi vision to funtion as a valuable managerial tool, it must provide understanding of
'hat management 'ants its business to loo( li(e and provide managers 'ith a referene point in
ma(ing strategi deisions and preparing the ompan! for the future% . good vision al'a!s
needs to be a bit be!ond a ompan!"s reah, but progress to'ard the vision is 'hat unifies the
efforts of ompan! personnel%
A Strategic "ision #s Different fro$ a Mission State$ent
. ompan!"s mission is defined b! the bu!er needs it see(s to satisf!, the ustomer groups and
mar(et segments it is endeavoring to serve, and the resoures and tehnologies that it is
deplo!ing in tr!ing to please its ustomers%
0he distintion bet'een a strategic !ision and a mission statement is fairl! lear#ut: a strategi
vision portra!s a ompan!"s future business sope 12'here 'e are going34 'hereas a co$%an&s
$ission t!piall! desribes its present business sope and purpose12'ho 'e are, 'hat 'e do, and
'h! 'e are here34%
. ompan!"s !alues are the beliefs, business priniples, and praties that guide the ondut of
its business, the pursuit of its strategi vision, and the behavior of ompan! personnel%
Compan! managers onnet values to the strategi vision in one of t'o 'a!s% +n ompanies 'ith
long#standing and deepl! entrenhed values, managers go to great lengths to explain ho' the
vision is ompatible 'ith the ompan!"s value set, oasionall! reinterpreting the meaning of
existing values to indiate their relevane in pursuing the strategi vision% +n ne' ompanies or
ompanies 'ith 'ea( or inomplete sets of values, top management onsiders 'hat values,
beliefs, and operating priniples 'ill help drive the vision for'ard%
Co$$unicating the Strategic "ision
.n effetivel! ommuniated vision is management"s most valuable tool for enlisting the
ommitment of ompan! personnel to ations that 'ill ma(e the vision a realit!%
5xeutive abilit! to paint a onvining and inspiring piture of a ompan!"s journe! and
destination is an important element of effetive strategi leadership%
Ex%ressing the Essence of the "ision in a Slogan
Creating a short slogan to illuminate an organi6ation"s diretion and purpose and then using it
repeatedl! as a reminder of the 2'here 'e are headed and 'h!3 helps (eep organi6ation
members on the hosen path%
Brea'ing Do(n Resistance to a )e( Strategic "ision
+t is partiularl! important for exeutives to provide a ompelling rationale for a dramatiall!
ne' strategi vision and ompan! diretion%
Recogni*ing Strategic #nflection Points
)ometimes there"s an order#of#magnitude hange in a ompan!"s environment that dramatiall!
alters its prospets and mandates radial revision of its strategi ourse%
The Paoffs of a Clear "ision State$ent
+n sum, a 'ell#oneived, forefull! ommuniated strategi vision pa!s off in several respets:
it r!stalli6es senior exeutives" o'n vie's about the firm"s long#term diretion7 it redues the
ris(%