Dealing with Immediate Business Problems - Assignment Example

It includes a set of decisions and actions used o formulate and implement strategies that will provide a competitively superior fit between Roger's organization and the environment it is working. Strategic planning produces fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it. It requires broad-scale information gathering, an exploration of alternatives, and an emphasis on the future implications of present decisions. Top-level managers engage chiefly in strategic planning or long-range planning. They answer such questions as "What is the purpose of this organization?". "What does this organization have to do in the future to remain competitive?". Top-level managers clarify the mission of the organization and set its goals. The output needed by top management for long-range planning is summary reports about finances, operations, and the external environment. A mission is a broad definition of a business that differentiates it from all other organizations. It deals with the company’s present business scope.

In addition to the organization's purpose, other key elements of the mission statement should include whom it serves, how, and why. The most effective mission statements are easily recalled and provide direction and motivation for the organization. A specific mission or purpose provides employees with a shared sense of opportunity, direction, significance, and achievement. An explicit mission guides employees to work independently and yet collectively toward the realization of the organization's potential. For example, many people might think that The Walt Disney Company's mission is to run theme parks. But, Disney's mission is always moving toward an expanded view. Disney provides entertainment. "Disney's overriding objective is to create shareholder value by continuing to be the world's premier entertainment company from a creative, strategic, and financial standpoint".

You might also think that Revlon's mission is to make cosmetics. Yet, Revlon provides glamour, excitement, and innovation. Charles Revson, Revlon's founder understood the importance of the mission. He said, "In the factory, we make cosmetics; in the store, we sell hope". "The best way to predict your future is to create it". A vision might be a picture, image, or description of the preferred future. A roadmap of a company’s future… 

As a rule strategic visions should have a time horizon of 5 yrs or more unless the industry is new or market conditions are volatile. A study over the period from 1926 to 1990 found visionary companies that set a purpose beyond making money outperformed other companies in the stock market by more than six to one. Managers require more vision than ever because change is coming faster than ever. Leaders can make their vision real by engaging the minds, as well as the hearts of others. Microsoft's early vision statement was "A Computer on Every Desk and In Every Home" (At approximately the same time, President John Akers said IBM's goal was to become a $100 billion company by the end of the century. At that time IBM sales were $50 billion). Ideally, the vision should be presented in a language that reaches out and grabs people, creates a vivid image in their heads, and provokes motivation and enthusiasm.