Business Studies

Strategic Management Topic 7 Q1 How do an organization’s vision, mission, and goals affect its approach to strategic management and measurement? Discuss how top management teams affect a firm’s performance and its ability to innovate, design, bring about effective strategic change.

ANSWER

Strategic Management

Organizational vision and mission statements, and goals are considered critical components of the strategic management process. It applies to all types of organizations, including public, private, for-profit, and non-profit international corporations and small and medium-sized businesses. Notably, an organization’s vision, mission, and goals affect its approach to strategic management and measurement; because employees’ focus can be molded through mission and vision statements, which can be utilized to develop a clear and a shared sense of purpose. Again, all of an organization’s and business’s activities are guided by its vision and mission statements (Taiwo, 2016). With this in mind, it is evident that the goal, vision, and mission statements determine the strategic management and measure of an organization. This is because the strategic management practices such as Setting objectives, studying the competitive environment, analyzing the internal organization, reviewing tactics, and ensuring that management implements the plans across the organization are all tasks that must be completed are aimed at managing the organization’s resources to achieve the goals and objectives of the organization.

The upper tier of an organization’s management team is known as the top management team. CEO or chief executive, president of the commissioner, director of finance, director of operations are all eligible members of the top management team. These are the organization’s top executives, and each of them gives instructions and orders on how to make crucial decisions. In addition, the top management team consists of upper-level executives who are involved in the company’s decision-making process (Tulung, 2016). Notably, the top management team affects the firm’s performance and its ability to innovate, design, and bring about effective strategic change. One of the reasons for the effects is the age; for example, if the executives are above forty years they are mature in thought and how they passive things hence are likely to make the best decisions. Second, the level of education of the members. Well-educated team members can instruct the innovations and designs best suited to achieve the firm’s objectives and through effective strategic change.

References

Taiwo, A. A., & Lawal, F. A. (2016). Vision and Mission in Organization: Myth or Heuristic Device?. The International Journal of Business & Management, 4(3).

Tulung, J. E., & Ramdani, D. (2016). The influence of top management team characteristics on BPD performance. International Research Journal of Business Studies, 8(3), 155-166.