Strategic Planning in the Small Business

HO

1-5 (continued)

Unit

1

Chapter 1

The Strategic Management

Process

21

Performance

objectives-the

organization's

targets for achievement.

Long-range

objectives-the

achievement

levels to be reached

either within the

next three

to five years or

else on an ongoing

basis year after

year.

Short-range

objective.%-the

near-term performance

targets: they

establish the

pace for achieving

the long-range

objectives

action plan

for achieving

organizational objectives.

Strategy-the

managerial

strategy

ismirrored in the

pattern of moves

and approaches

devised by

manage­

ment to produce

the desired

performance

Strateg. is the

how of pursuing

the

organization's

mission and

reaching target objcctives

Strategic

plan-a

statement outlining

an organization's

mission and

futu-e direc­

tion.

near-term and long-term

performance

targets. and

strategy in light

of the

organization's

external

and internal

situation

Strategy..formdlatiton-refers

to the entire direction-setting

management

function

of an organization's

mission.

setting specific

performance oojectives,

and form­

ing a strateg.

The end product

of strateg. formulation

is a strategic

plan.

Strategy

nphoentation-the

full range

of managerial

actiitie,, associated

with

putting

the chosen strategy

into place.

superising its pursuit.

and achieving

the

targeted

results

In the chapters

to come. we

will probe the strategN

-related

tasks of managers

and the

methods of strategic

analysis

more intensivel.

When you get

to the end of

the hook

we think you

will see why the

two thing, that

usually separate

the best­

the rest are

1) superior strategy-making

and en­

managed

organization

from

trepreneurshtp

and

(2) competent

implementation

and e\ecution

of the chosen

strategy.

An organization's

management

team-whether

it devises

and imple­

ments new

strategies. is preoccupied

%ith

implementing

prior strategies

better. or

does

nothing to

change either

strateg. or

the organization's

basic method

of

and

chief strateg.­

operating-is

still

the organization's

chief strategy-maker

implementer.

The quality

of managerial

strateg. -making

and strategy-implement­

ing has a significant

impact

on organization

performance.

A company that

has no

undemanding

objectives, or

a muddled or

fla%%ed

clear-cut direction,

vague or

strategy

is much more

likely to drift,

to tolerate subpar

performance.

and to lose

its competitiveness

SUGGESTED

READINGS

Andrews,

Kenneth R.

The Concept of Corporate

Stralegy.

3rd Ed. Homewood.

Ill.:

Richard

D. Irwin. 1987.

chap. I.

Gluck. Frederick

W. "A Fresh Look

at Strategic Management."

Journal of

Business

Strategy 6. no.

2 (Fall 1985).

pp. 4-21

Kelley.

C. Aaron "The

Three Planning

Questions: A Fable

'" Business Horizons

26.

no. 2

(March-April 1983),

pp A6-48

Kotter. John

P. The General

Managers New York.

Free Press. 1982.

Levinson. Harry.

and Stuart Rosenthal.

CEO-Corporate

Leadership inAction.

New

York: Basic

Books, 1987.

Mintzberg.

Henry. "Crafting

Strategy." Harvard

Business Review 65.

no. 4 (July-Au­

gust 1987). pp.

66-75.

96