Strategic Analysis    

Now that we’ve covered the basics of what strategy is, let’s proceeds to the foundation of strategic analysis which is to determine the vision, mission and strategic objectives for the firm.  A vision embodies an attractive, yet realistic and credible future for an organization. Recall the big three questions of strategy: Where is the organization now? Where does it want to be? How will it get there? We'll address the first of those questions in the upcoming lessons. A company's vision statement addresses the second: Where does the organization want to be? A good vision statement will be bold, directional, and inspirational. It doesn't necessarily address profitability, or growth, or any of the other typical goals that companies bring forth in an attempt to please shareholders. Instead, a truly visionary statement invites us to picture a bold, exciting future as well as the organization's place in that future.  The vision statement has also been described as the strategic intent of the firm.  

If a vision addresses the second of the three big questions of strategy, then the mission statement answers the first: Where is the organization today? Mission statements are the workhorses of strategy. They address the scope of a company’s operation, how it serves it’s customer base, the ways a company adds value and competes in the marketplace, and it recognizes the company’s stakeholders (individuals or groups with a real or perceived claim on what an organization is doing and how well it performs. Stakeholders can be internal—including stockholders, employees, managers, executives, or board members, or external, which encompasses practically everyone else! ). 

Last, a strategic objective operationalizes the mission statement and addresses the gaps between the mission and vision.  Strategic objectives are SMART - specific, measurable, achievable, realistic and timely.  In doing research on your company, you will probably find a mission and vision statement on a company’s website, but not the strategic objectives.  Why not?  Showing their strategic objectives would show their playing cards to the company’s rivals. However, non-profits organizations will often make strategic plans readily accessible.