Vision, Mission and Objectives - Mastering Strategic Management - 1st Canadian Edition (2023)

Chapter 2: Lead Strategically

Learning objectives

  1. Define vision and mission and differentiate them.
  2. Find out what the acronym SMART stands for.
  3. Being able to write a SMART goal.

Good business leaders create a vision, articulate it, passionately own the vision, and relentlessly drive it to realization.

—Jack Welch, former CEO of General Electric

Many competencies and skills separate effective strategic leaders like Howard Schultz from poor strategic leaders. One is the ability to inspire employees to work hard to improve the performance of your organization. Effective strategic leaders can convince employees to embrace big ambitions and move the organization forward. By contrast, weak strategic leaders struggle to rally their people and channel their collective energy in a focused, positive direction.

As the Jack Welch quote suggests, ais a key tool available to executives to inspire people in an organization (Figure 2.2 “Overview: Organizational Vision”🇧🇷 The vision of an organization describes what the organization hopes to become in the future. Well-constructed visions clearly articulate an organization's aspirations. Google's mission is to organize the world's information and make it universally accessible and useful (Edwards, 2012). Google expands on its mission by listing "Ten Things We Know," including "Focus on the user and everything else will follow," "It's better to do one thing really, really well," and "Fast is better than slow" (Google Inc. , 2014).

This brief but powerful statement emphasizes several important goals for Google, including excellence in customer service and setting high standards for Google employees and products. The mission of the McDonald's brand is “to be our customers' favorite place and way to eat. Our global operations are aligned around a global strategy called Plan to Win, focused on an exceptional customer experience: people, products, place, price and promotion. We are committed to continually improving our operations and improving the experience for our customers.” To be effective, this mission statement must reach all employees and inspire them to embrace that mission. (Edwards, 2012).

One limitation of these general objectives is that frontline and operational employees will not relate or connect with the objectives and will be disengaged from the process: the flavor of the month…. The CEO/management team that can effectively translate high-level goals into on-site activities will do well to get the team involved! Of course, management also requires a strong element of walk-the-talk.

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The results of a survey of 1,500 executives illustrate how the need to create an inspiring vision creates a tremendous challenge for executives. When asked to identify the most important characteristics of effective strategic leaders, 98% of executives listed "a strong sense of vision" first. Meanwhile, 90% of executives expressed serious doubts about their own ability to create a vision. Not surprisingly, many organizations do not have formal visions. Many organizations that have visions find that employees do not embrace or pursue them. Therefore, having a well-formulated vision that employees embrace can give the organization an advantage over its rivals.

At WestJet, Clive Beddoe and his team developed their mission statement: "To enrich the lives of everyone in the WestJet world by providing safe, friendly and affordable air travel." A mission like WestJet's establishes why an organization exists. Well-written mission statements effectively capture an organization's identity and provide answers to the fundamental question "Who are we?" While a vision looks to the future, a mission captures key elements of the organization's past and present.

Organizations need the support of their key stakeholders, such as employees, owners, suppliers, and customers, if they are to thrive. A mission statement that engages stakeholders will help develop an understanding of why they should support the organization and clarify the important role or purpose the organization plays in society, also called the "social license to operate." Google's mission, for example, is "to organize the world's information and make it universally accessible and useful." Google pursued this mission in its early days, developing a very popular Internet search engine. The company continues to fulfill its mission through a series of strategic actions, including offering its Google Chrome Internet browser to the online community, providing free email through its Gmail service, and making books available online for the navegation.

In ancient times, Aesop said: "United we stand, divided we fall." This provides a useful way to think about the relationship between vision and mission. Executives ask for trouble if their organization's vision and mission are divided by emphasis on different domains. Some universities have fallen into this trap. Many large public universities were established in the late 19th century with missions focused on the education of citizens. However, as the 20th century progressed, the creation of scientific knowledge through research became increasingly important to these universities. Many university presidents responded by creating visions focused on building the scientific prestige of their schools. This created a dilemma for professors: should they spend most of their time and energy teaching students (as the mission demanded) or their research studies (as the ambitious presidents demanded through their visions)? Some universities continue to struggle with this compensation today and remain divided among themselves. In short, an organization is more effective to the extent that its vision and mission direct the efforts of employees in the same direction.

The combination of an organization's vision and mission provides a broad and general sense of the organization's direction. To work towards achieving these general aspirations, organizations also need to create—More specific goals that should provide clear and tangible guidance to employees as they go about their daily work. The most effective goals are those that are




Rrealistic, and

Tbound to time.

(Video) 5- Strategy Leadership – Vision vs Mission vs SMART Goals in Business Strategy - Chapter 2 -Lesson 1

An easy way to remember these dimensions is to combine the first letter of each into a word:INTELLIGENT(Figure 2.4 “Creating SMART objectives”🇧🇷 Employees are in a much better position to succeed to the extent that an organization's goals are SMART.specificif it is explicit rather than vague. WestJet's vision is that "by 2016, WestJet will be one of the five most successful international airlines in the world, providing our guests with a friendly and attentive experience that will change air travel forever."

a goal ismeasurablethe extent to which it can be quantified whether the objective is achieved. WestJet's goal to be one of the world's top five most successful international airlines by 2016 offers a very simple and clear measurability: WestJet will either be in the top five in 2016 or it won't be.

a goal isaggressiveif achieving it presents a significant (rather than easy) challenge for the organization. A number of research studies have shown that performance is stronger when goals are challenging but achievable. Such goals force people to test and stretch the limits of their abilities. This can result in reaching amazing heights.

WestJet is committed to growing responsibly and ensuring that it is an environmentally sustainable airline and supports IATA's goal of carbon neutral growth in its industry after 2020. WestJet already operates one of the most modern and fuel efficient fleets in North America.

Achieving carbon-neutral growth will be a challenge for WestJet, which will require combined efforts from the airline and its supplier partners such as aircraft manufacturers, airports and the government. In 2012, WestJet reported that “our significant investments in fleet and technology have greatly improved the fuel efficiency of our aircraft and the ability to operate our business more economically. Between 2000 and 2012, we improved our fuel efficiency by 44.8% per revenue tonne-kilometre. The resulting fuel savings is equivalent to the amount of fuel that would have been used to fly a next-generation Boeing 737 from Calgary to Toronto and back approximately 44,135 times (based on our 2012 fuel use). (Quigley, 1994)

It is useful to know that easilyaccessibleThe goals are not only easy, but they tend to undermine the motivation and the general effort of the employees, said Miguel Ángel: earning our brand. Consider a situation where you did so well in a course that you only need a score of 60% on the final exam to earn an A in the course. Understandably, few students would study hard enough to get a 90% or 100% on the final exam under these circumstances. Similarly, setting organizational goals that are easy to achieve encourages employees to work hard enough to achieve the goals.

It's tempting to extend this logic and think to the conclusion that setting near-impossible goals will further encourage team effort and performance. However, people act rationally and tend to get discouraged and give up when faced with goals that realistically have little chance of being achieved. If, for example, Starbucks had set a one-year deadline to recoup the $35 share price, that would have drawn derision. The company simply could not be reversed so quickly. Similarly, if WestJet's fuel efficiency target were a 100% improvement, WestJet employees would probably not adopt it. Thus, the goals must also be realistic, which means that their achievement is feasible.

Most of us have found deadlines to be motivating and help structure our work time. The same is true for organizations, leading to the conclusion that objectives must betime limitby creating deadlines. WestJet has set a goal of achieving a 45% cumulative improvement in fuel efficiency for our 737 fleet by 2020, compared to the 2000 base year. (WestJet, 2012)

The period after a major goal is achieved is often overlooked, but it is critical. Will an organization rest on its laurels or take on new challenges? Starbucks provides an illustrative example. In 2011, after a renovation of the company's stores and services, the share price was around $35. In early 2014, the price was around $70.

travel key

Strategic leaders must ensure that their organizations have three types of objectives. A vision establishes what the organization aspires to be in the future. A mission reflects the organization's past and present, and indicates why the organization exists and what role it plays in society. Goals are the more specific objectives that organizations pursue to achieve their visions and missions. The best goals areINTELLIGENT:specific, measurable, achievable, realistic, and time-bound.

(Video) 3- The History of Business Strategy – Mastering Strategic Management - Chapter 1 - Lesson 3


  1. Take a look at your college or university website. What is the vision and mission of the organization? Were they easy or hard to find?
  2. As a member of the student body, do you find the vision and mission of your college or university motivating and inspiring? Why or why not?
  3. What is an important goal you have set for your career? Could this objective be improved by applying the SMART objective concept?

Edwards, A. (2012).Mission Statements: The World's Top 10 Brands.Taken from

Google Inc. (2014).10 things we know to be true🇧🇷 Retrieved from

Quigley, JV (1994). Vision: How leaders develop, share and sustain horizons,37(5), 37–41.

WestJet Airlines Ltd. (2012).WestJet Global Reporting Initiative 2012 Report[PDF]🇧🇷 Retrieved from

Figure 2.2 image description: Big picture: organizational vision.

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The vision of an organization describes what the organization hopes to become in the future. Visions highlight the values ​​and aspirations that are at the core of the organization. While vision statements have the potential to inspire employees, customers, and other stakeholders, vision statements are relatively rare, and good visions are even rarer. Below are some of the visions that companies are pursuing today.

  • Alcoa: To be the best company in the world, in the eyes of our customers, shareholders, communities and people.
  • Avon: To be the company that best understands and meets the needs of women worldwide for products, services and personal fulfillment.
  • Chevron: To be the most admired global energy company for its people, partnership and performance.
  • Google – to develop a perfect search engine.
  • Kraft Foods: Helping people around the world eat and live better.
  • Procter and Gamble: To be recognized as the best consumer products and services company in the world.

[Back to Figure 2.2]

Figure 2.3 image description: Missions.

While a vision describes what an organization wants to become in the future, an organization's mission is based on the past and present. A mission describes why the organization exists and explains the role it plays in society. A well-written mission statement captures the organization's identity and helps answer the fundamental question of "who are we?" In practice, a mission statement explains to key stakeholders why they should support the organization. The following examples illustrate the connections between organizations and the needs of their key stakeholders.

  • Harley Davidson – We make dreams come true through the motorcycling experience, offering motorcyclists and the general public an ever-expanding line of motorcycles and branded products and services in select market segments.
  • Westjet – Enriching the lives of everyone in the Westjet world by providing safe, friendly and affordable air travel.
  • Starbucks: To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. It has always been and always will be about equality.
  • Mountain Equipment Cooperative - We help people enjoy the benefits of nature-focused, self-propelled recreation.
  • Fender musical instrument - to exceed the expectations of music enthusiasts around the world.

[Back to Figure 2.3]

Figure 2.4 image description: Creating SMART goals.

While missions and visions provide a general sense of direction for the organization, goals are more specific objectives that should provide clear and tangible direction for employees. The most effective goals are those that are SMART (specific, measurable, achievable, realistic, and time bound). SMART goals help provide clarity, transparency, and accountability. Westjet's goal is to "enrich the lives of everyone in the Westjet world by providing safe, friendly and affordable air travel. By 2016, we strive to be one of the top five airlines in the world, based on key metrics such as on-time , safety, profitability and customer satisfaction.

Westjet's goals fit the acronym SMART.

  • Specific: Westjet strives to be among the top five international airlines. By contrast, “best” would be vague, making it difficult to decide whether a goal has actually been achieved.
  • Measurable: Westjet identifies key metrics: punctuality, safety, profitability and customer satisfaction. Westjet may measure your progress against your goals.
  • Achievable: Westjet lists achievements to date in working toward goals. A large body of research shows that performance is stronger when goals are challenging but achievable.
  • Realistic: Westjet claims to support the International Air Transport Association (IATA) goals of a cumulative global average fuel efficiency improvement of 1.5% per year by 2020. Achieving a goal must be achievable for employees to buy into it .
  • Time limit: Westjet's timeline is "In 2016". Deadlines are motivating and create responsibility.

[Back to Figure 2.4]

media attributions

  • Figure 2.1: Attribution information for all included images is at the end of the chapter.
  • Figure 2.2: Attribution information for all included images is at the end of the chapter.
  • Figure 2.3: Attribution information for all included images is at the end of the chapter.
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When was Mastering strategic management 1st Canadian edition published? ›

Edwards, J. (2014). Mastering Strategic Management – 1st Canadian Edition.

What is the mission and purpose of strategic management? ›

A strategic management process helps an organization and its leadership to think about and plan for its future existence, fulfilling a chief responsibility of a board of directors. Strategic management sets a direction for the organization and its employees.

What are the key elements in the strategic management process? ›

What are the 5 steps of the strategic management process?
  • Goal setting. The strategic management process is all about creating a roadmap to help you achieve your vision. ...
  • Environmental scanning and analysis. The next part of the process is analysis. ...
  • Strategy formulation. ...
  • Strategy implementation. ...
  • Strategy evaluation.
Jun 28, 2022

What is the difference between business policy and strategic management? ›

The central difference between strategic management and business policies is that strategic management is a system that helps guide and direct a firm, while policies, on the other hand, are merely rules to be followed.

Which year did strategic management start? ›

Strategic management is a youthful discipline. Its origins date back to the 1960s, with its roots to be found mainly in the seminal publications by Chandler (1962), Ansoff (1965) and Andrews (1971).

Who is the father of strategic management? ›

Igor Ansoff, the father of strategic management.

What is vision vs mission in strategic management? ›

A mission statement outlines all the things your company is doing in the present to reach your goal, while a vision statement describes what your company is building toward in the future. Audience: The audiences for mission and vision statements can vary widely.

What is a vision statement in strategic management? ›

A vision statement describes what a company desires to achieve in the long-run, generally in a time frame of five to ten years, or sometimes even longer. It depicts a vision of what the company will look like in the future and sets a defined direction for the planning and execution of corporate-level strategies.

What are the five important task of strategic management? ›

There are five essential tasks of strategic management. They include developing a strategic vision and mission, setting objectives, crafting tactics to achieve those objectives, implementing and executing the tactics, and evaluating and measuring performance.

What are the 4 strategic pillars? ›

The 4 pillars for strategy are: Vision, Analysis, Target & Plan. A strategy needs to built on the foundation of an overarching vision that it is meant to achieve. In this sense it is important to acquire guidance on the vision from supervisory authorities of the strategy.

What are the 4 basic model of strategic management? ›

The four phases of strategic management are formulation, implementation, evaluation and modification.

What are the 5 P's of strategic knowledge management? ›

People, Process, Platform, Partnership, and Problem Solving: The 5P Approach to Strengthening Knowledge Management Capacity and Culture | USAID Learning Lab.

What are the five 5 factors that support strategy implementation? ›

Often overlooked are the five key components necessary to support implementation: people, resources, structure, systems, and culture. All components must be in place in order to move from creating the plan to activating the plan.

Is an MBA in strategic management worth it? ›

5. People with strategy MBAs are usually paid well. In addition to preparing you to lead a business strategically, this type of degree is a common gateway to lucrative and high-paying business careers.

What is strategic management model? ›

The strategic management model identifies concepts of strategy and the elements necessary for development of a strategy enabling the organization to satisfy its mission. Historically, a number of frameworks and models have been advanced which propose different normative approaches to strategy determination.

What are the 3 basic model of strategic management? ›

There are three major components in strategic management, namely, strategy formulation, strategy implementation and strategy evaluation and control as shown in Figure 2.1. There are several elements that make up each component.

Who was the first who brought recognition to strategic management? ›

The concept of strategic management has its roots in 1950s economic theory based on industrial-organisational approaches. Peter Drucker, also known as the Father of Modern Management Theory, believed that setting objectives and monitoring company growth should permeate the entire organisation, top to bottom.

What are the 2 types of strategic management? ›

The five types of strategic management enumerated from most simplistic to most complex are linear, adaptive, interpretive, expressive, and transcendent. These five types of strategic management represent a continuum of organizational focus and action.

Who is the most important strategist in strategic management? ›

Chief Executive Officer: In the management circle, the chief ex-ecutive is the top man, next to the directors of the Board. He occupies the most sensitive post, being held responsible for all aspects of strategic management right from formulation to evaluation of strategy.

Who is the father of management by objectives? ›

The term “management by objectives (MBO)” was first used by Peter F. Drucker in his 1954 book titled The Practice of Management.

Is Peter Drucker the father of management? ›

Peter Drucker is an influential Austrian-American author, mentor and consultant who is considered the father of modern business management. His innovative thinking has revolutionized today's theory of business and transformed it into an actionable and ethical discipline used by progressive business leaders worldwide.

What are the 3 parts of a vision statement? ›

It's comprised of three parts: what you do, how you do it, and why you do it. A vision statement outlines the company's long-term goals and aspirations for the future in terms of its long-term growth and impact on the world.

What is vision mission objectives strategy? ›

VMOSA (Vision, Mission, Objectives, Strategies, and Action Plans) is a practical planning process used to help community groups define a vision and develop practical ways to enact change. VMOSA helps your organization set and achieve short term goals while keeping sight of your long term vision.

How strategic managers identify the organization's vision and mission? ›

Strategic Management Process

Having clearly defined the vision and mission of the organization, managers then can set strategic objectives that are aligned with the company's long-term goals. Managers translate these strategic objectives into an operational strategy that can be implemented, monitored and evaluated.

What are the 5 main characteristics of a vision? ›

What are the main characteristics of a vision? Research on visionary leader- ship suggests that visions have five characteristics: a picture, a change, values, a map, and a challenge (Nanus, 1992; Zaccaro & Banks, 2001).

What are the seven strategic pillars of vision? ›

Vision 2050 is built on seven strategic focus areas which are referred to as pillars: Human Capital Development, Gender, Youth, and People Empowerment; Wealth Creation; Institutional Development and Service Delivery; Security and International Relations; Environmental Sustainability and Climate Change; Spiritual ...

What is an example of a mission and vision statement? ›

Mission statement: We strive to offer our customers the lowest possible prices, the best available selection, and the utmost convenience. Vision statement: To be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online.

What are the 9 key terms in strategic management? ›

Before we further discuss strategic management, we should define nine key terms: competitive advantage, strategists, vision and mission statements, external opportunities and threats, internal strengths and weaknesses, long-term objectives, strategies, annual objectives, and policies.

What are the 3 most important aspects of strategic management? ›

Characteristics of Strategic Management

Handles long-term issues. Offers competitive advantage. Future-oriented. Long-term implications.

What are the 5 I's of strategic analysis? ›

The five I's of strategic analysis include: (1) issue identification; (2) interested strategic stakeholders; (3) incentive of stakeholders; (4) information-objectives; and (5) interaction strategies (Lussier & Sherman, 2014).

What are the five 5 different phases of strategy? ›

The five stages of the process are goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring.

What are the 5 essential components of strategic planning? ›

Effective strategic planning elements overview:

Defining your Vision. Crafting your Values. Determining desired Outcomes. Declaring explicit Accountability.

What is the core of strategic management? ›

Strategic management involves setting objectives, analyzing the competitive environment, analyzing the internal organization, evaluating strategies, and ensuring that management rolls out the strategies across the organization.

What are the 4 key processes of knowledge management? ›

The results indicate that the KM process consists of four stages: acquisition, storage, distribution, and use of knowledge.

What are the top 5 barriers to knowledge management? ›

Read on to learn the TOP 5 barriers of knowledge sharing and how you can overcome them:
  • Barrier #1: Lack of time. ...
  • Barrier #2: Resistance to change. ...
  • Barrier #3: Lack of participation. ...
  • Barrier #4: Unnecessarily complicated tools. ...
  • Barrier #5: Anxieties about job security.
Feb 15, 2022

What are the 3 major knowledge management systems? ›

There are three major types of knowledge management systems: enterprise wide knowledge management systems, knowledge work systems, and intelligent techniques.

What are the 8 elements of a strategic plan? ›

What are strategic plan elements?
  • Vision statement. The vision statement is an important part of a strategic plan as it provides a short summary highlighting what your business will look like in the future. ...
  • Mission statement. ...
  • Goals and objectives. ...
  • SWOT analysis. ...
  • Action plan. ...
  • KPIs.
Nov 12, 2020

What are the six elements of a strategic framework? ›

What Are the Six Elements of a Strategic Framework?
  • Vision. This is an organization's picture of the ideal outcome they would like to pursue for the future. ...
  • Mission. ...
  • Values. ...
  • Objectives. ...
  • Strategy. ...
  • Tactics.

What are the 6 steps in the strategic planning process? ›

6 Strategic Planning Steps To Follow
  • Confirm (or create) your mission and vision statements. Mission and vision statements provide important context for your future plans. ...
  • Choose a framework. ...
  • Identify your priorities. ...
  • Develop measures and initiatives. ...
  • Build a rollout plan. ...
  • Review and make changes.

What is the highest MBA salary? ›

The average salary for the class of 2021 bachelor's degree graduates was $55,911, according to the National Association of Colleges and Employers. On the other hand, Payscale data shows that for MBA graduates in the U.S., the average base salary is $92,000. Though, GMAC reports that number can be high as $115,000.

What is the salary after MBA in strategic management? ›

As per the salary estimates, the research suggests that the annual Strategy Manager's salary in India varies from INR 5.5 Lakhs to INR 41.6 Lakhs, however, in most cases average salary is around INR 18.0 Lakhs.

Which MBA is best for high salary? ›

Generally, the highest MBA salaries are grabbed in MBA specializations like Finance, Marketing, General Management, Business Analytics, and Entrepreneurship.

WHO publishes the strategic management Journal? ›

Strategic Management Journal is published by John Wiley and Sons Ltd. It's publishing house is located in United Kingdom. Coverage history of this journal is as following: 1980-2021.

Who wrote strategic management? ›

Product Description. This book is the original text by H. Igor Ansoff, the pioneer of Strategic Management'.

Who developed the Grand strategy Matrix? ›

It was released by business theorist Paul Joseph DiMaggio in 1980. The grand strategy matrix can be used by any business regardless of size, industry, or life cycle stage. The grand strategy matrix is divided into four quadrants, with each based on varying degrees of competitive position and industry growth.

What is strategy management PDF? ›

Strategic management is defined as the process of evaluation, planning, and implementation designed to maintain or improve competitive advantage. The process of evaluation is concerned with assessment of the external and internal environments.

What is the acceptance rate of Strategic Management Journal? ›

With an acceptance rate of 30%, the journal considers theoretical and empirical works in Management, Strategic Management, Health Care Management, Strategy and Leadership as research articles, reviews, case studies and commentaries for publication.

What is the 5 year impact factor of Strategic Management Journal? ›

In the most recent Journal Citation Report (released in June 2022), SMJ had a two-year impact factor of 7.815. SMJ has a five-year impact factor of 12.247.

Is Strategic Management Journal peer-reviewed? ›

Journal of Strategic Management is peer reviewed by world's best reviewers and is published by Stratford Peer Reviewed Journals and Books globally. This journal covers the field of business strategies and strategic studies.

Who is the world's greatest strategist? ›

Alexander the Great

By the age of 30, he had created a vast empire that stretched from Macedonia to Egypt and from Greece to part of India. He was undefeated in battle and is widely considered to be one of history's most successful military commanders.

What are the 4 management strategies? ›

The four phases of strategic management are formulation, implementation, evaluation and modification.

What are the four quadrants of the grand strategy matrix? ›

Strong Market Position + Strong Market Growth Strategies:

Market Penetration. Backward Integration. Forward Integration. Concentric Diversification.

What are the three levels of a grand strategy? ›

The three grand strategies are growth, stability, and defensive, and a firm chooses one of these approaches in addition to their choice of business-level, corporate, and/or international strategies.

What is the difference between BCG matrix and grand strategy matrix? ›

The IE Matrix is designed to help identify and assess the importance of international factors to a company, while the BCG Matrix focuses on business strategy and the Grand Strategy Matrix is designed to help identify a company's long-term goals.

What are the five 5 forms of strategy? ›

They are Plan, Ploy, Pattern, Position, and Perspective.

What are the 5 model of strategic management? ›

The five stages of the process are goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring.


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