Strategies in Action

Strategies in Action

Learning Outcomes

After studying this unit, you should be able to do the following:

➢ Discuss the value of establishing long term objectives.

➢ Identify 16 types of business strategies.

➢ Identifying numerous examples of organisations pursuing different types of strategies.

➢ Discuss guidelines when particular strategies are most appropriate to pursue.

➢ Discuss Porter’s five generic strategies.

➢ Describe strategic management in non profit, governmental and small organisations.

➢ Discuss the balance score card.

➢ Compare and contrast financial with strategic objectives.

➢ Discuss recent trends in outsourcing.

Introduction

This unit brings strategic management to life with many contemporary examples. Sixteen types of strategies are defined and exemplified, including Michael Porter’s generic strategies: cost leadership, differentiation, and focus. Guidelines are presented for determining when it is most appropriate to pursue different types of strategies. An overview of strategic management in nonprofit organizations, governmental agencies, and small firms is provided.

Long-Term Objectives

Long-term objectives represent the results expected from pursuing certain strategies. Strategies represent the actions to be taken to accomplish long-term objectives. The time frame for objectives and strategies should be consistent, usually from two to five years.

The Nature of Long-Term Objectives

Objectives should be quantitative, measurable, realistic, understandable, challenging, hierarchical, obtainable, and congruent among organizational units. Each objective should also be associated with a timeline. Objectives are commonly stated in terms such as growth in assets, growth in sales, profitability, market share, degree and nature of diversification, degree and nature of vertical integration, earnings per share, and social responsibility. Clearly...