WHAT IS A VISION STATEMENT?

WHAT IS A VISION STATEMENT?
Your vision is your dream. It's what your organization believes are the ideal conditions for your community; that is, how things would look if the issue important to you were completely, perfectly addressed. It might be a world without war, or a community in which all people are treated as equals, regardless of gender or racial background.
Whatever your organization's dream is, it may be well articulated by one or more vision statements. Vision statements are short phrases or sentences that convey your community's hopes for the future. By developing a vision statement or statements, your organization clarifies the beliefs and governing principles of your organization, first for yourselves, and then for the greater community.
There are certain characteristics that most vision statements have in common. In general, vision statements should be:
• Understood and shared by members of the community
• Broad enough to include a diverse variety of local perspectives
• Inspiring and uplifting to everyone involved in your effort
• Easy to communicate - for example, they are generally short enough to fit on a T-shirt
Here are some examples of vision statements that meet the above criteria:
• Caring communities
• Healthy children
• Safe streets, safe neighborhoods
• Every house a home
• Education for all
• Peace on earth
WHAT IS A MISSION STATEMENT?
The next piece of the puzzle is to ground your vision in practical terms. This is where developing a mission statement, the next step in the action planning process comes in. An organization's mission statement describes what the group is going to do and why it's going to do that. For example, "Promoting care and caring at the end of life through coalitions and advocacy."
Mission statements are similar to vision statements, in that they, too, look at the big picture. However, they're more concrete, and they are definitely more "action-oriented" than vision statements. Your vision statement should inspire people to dream; your mission statement should inspire them to action.
The mission statement might refer to a problem, such as an inadequate housing, or a goal, such as providing access to health care for everyone. And, while they don 't go into a lot of detail, they start to hint - very broadly - at how your organization might fix these problems or reach these goals. Some general guiding principles about mission statements are that they are:
• Concise. While not as short as vision statements, mission statements generally still get their point across in one sentence.
• Outcome-oriented. Mission statements explain the fundamental outcomes your organization is working to achieve.
• Inclusive. While mission statements do make statements about your group's key goals, it's very important that they do so very broadly. Good mission statements are not limiting in the strategies or sectors of the community that may become involved in the project.
The following examples should help you understand what we mean by effective mission statements.
• "Promoting child health and development through a comprehensive family and community initiative."
• "To create a thriving African American community through development of jobs, education, housing, and cultural pride."
• "To develop a safe and healthy neighborhood through collaborative planning, community action, and policy advocacy."
• "Promoting community health and development by connecting people, ideas and resources." (This is the mission of the Community Tool Box)

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The Importance of Strategic Management & Strategic Planning

The Importance of Strategic Management & Strategic Planning

Strategic Planning

   Companies complete strategic planning activities to create a mission statement, establish operational and financial objectives, allocate resources, align operations to accomplish the organization's mission and ensure that stakeholders – entities or people with an interest in the company -- are working toward common goals. The strategic planning process leads to decisions and actions that define what an organization does, the customers it serves, how the organization completes required activities and how the company will measure success. At particular intervals, leaders periodically assess the company's operating environment and repeat the planning process to ensure the strategic plan remains an effective operational guide.

Strategic Planning Process

   Strategic planning is the first phase of the strategic management process. You can create a strategic plan in three fairly simple steps. First, create a mission statement that describes the central purpose of the organization and its goals and a vision statement that focuses on the future direction of the company. These two statements are the framework of the strategic plan. Next, define financial and strategic objectives. For example, financial objectives may include increasing the return on investments or the achievement of a positive cash flow. Strategic objectives may include achieving a certain market share or lowering costs by a particular percentage. After objectives are defined, perform an internal analysis of a firm's strengths and weaknesses and an external analysis of opportunities and threats. Also, complete an industry analysis to identify rival firms and customers. Use this information to plan the business strategies by matching your company's strengths to its opportunities and finding ways to counter company weaknesses and external threats.

Strategic Management

   When a company gains an advantage relative to its competitors, such as its product offering or cost structure, the business may be able to acquire and retain more customers, generate higher sales volumes or achieve greater profit margins. To gain an advantage, an organization relies on a goal-driven strategic-management process to analyze its current capabilities and its operating environment, identify long-term threats and opportunities, and marshal the company’s resources to address them. Strategic management maintains the alignment of a company’s activities and resources with its vision, mission and strategy to improve financial and operating performance. It provides a means to convert a strategic plan to a framework that provides feedback for decisions and actions and allows the strategic plan to evolve as a company’s operating environment, objectives and operating requirements change.

Strategic Management Process

   The first step of the strategic management process is strategic planning, which requires your company to develop a vision and mission, identify priorities and develop an action plan. The implementation stage comes next. At this point, you define short-term goals, functional strategies and success measures, and identify and implement an appropriate structure that will best support your strategies. After the strategies are implemented, the evaluation process begins. You use performance measures to monitor the company's success in accomplishing short-term goals and its progress toward long-range goals. Along the way, you take corrective actions and adjust the strategy, if necessary.

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SPACE Matrix Strategic Management Method

SPACE Matrix Strategic Management Method

The SPACE matrix is a management tool used to analyze a company. It is used to determine what type of a strategy a company should undertake.
The Strategic Position & ACtion Evaluation matrix or short a SPACE matrix is a strategic management tool that focuses on strategy formulation especially as related to the competitive position of an organization.
The SPACE matrix can be used as a basis for other analyses, such as the SWOT analysis, BCG matrix model, industry analysis, or assessing strategic alternatives (IE matrix).
What is the SPACE matrix strategic management method?
To explain how the SPACE matrix works, it is best to reverse-engineer it. First, let's take a look at what the outcome of a SPACE matrix analysis can be, take a look at the picture below. The SPACE matrix is broken down to four quadrants where each quadrant suggests a different type or a nature of a strategy:
• Aggressive
• Conservative
• Defensive
• Competitive
• This is what a completed SPACE matrix looks like:
•
• This particular SPACE matrix tells us that our company should pursue an aggressive strategy. Our company has a strong competitive position it the market with rapid growth. It needs to use its internal strengths to develop a market penetration and market development strategy. This can include product development, integration with other companies, acquisition of competitors, and so on.
• Now, how do we get to the possible outcomes shown in the SPACE matrix? The SPACE Matrix analysis functions upon two internal and two external strategic dimensions in order to determine the organization's strategic posture in the industry. The SPACE matrix is based on four areas of analysis.
• Internal strategic dimensions:
•          Financial strength (FS)
          Competitive advantage (CA)
• External strategic dimensions:
•          Environmental stability (ES)
          Industry strength (IS)
• There are many SPACE matrix factors under the internal strategic dimension. These factors analyze a business internal strategic position.

The financial strength factors often come from company accounting. These SPACE matrix factors can include for example return on investment, leverage, turnover, liquidity, working capital, cash flow, and others. Competitive advantage factors include for example the speed of innovation by the company, market niche position, customer loyalty, product quality, market share, product life cycle, and others.
• Every business is also affected by the environment in which it operates. SPACE matrix factors related to business external strategic dimension are for example overall economic condition, GDP growth, inflation, price elasticity, technology, barriers to entry, competitive pressures, industry growth potential, and others. These factors can be well analyzed using the Michael Porter's Five Forces model.
• The SPACE matrix calculates the importance of each of these dimensions and places them on a Cartesian graph with X and Y coordinates.
• The following are a few model technical assumptions:
• - By definition, the CA and IS values in the SPACE matrix are plotted on the X axis.
- CA values can range from -1 to -6.
- IS values can take +1 to +6.
• - The FS and ES dimensions of the model are plotted on the Y axis.
- ES values can be between -1 and -6.
- FS values range from +1 to +6.
• How do I construct a SPACE matrix?
• The SPACE matrix is constructed by plotting calculated values for the competitive advantage (CA) and industry strength (IS) dimensions on the X axis. The Y axis is based on the environmental stability (ES) and financial strength (FS) dimensions. The SPACE matrix can be created using the following seven steps:
• Step 1: Choose a set of variables to be used to gauge the competitive advantage (CA), industry strength (IS), environmental stability (ES), and financial strength (FS).
• Step 2: Rate individual factors using rating system specific to each dimension. Rate competitive advantage (CA) and environmental stability (ES) using rating scale from -6 (worst) to -1 (best). Rate industry strength (IS) and financial strength (FS) using rating scale from +1 (worst) to +6 (best).
• Step 3: Find the average scores for competitive advantage (CA), industry strength (IS), environmental stability (ES), and financial strength (FS).
• Step 4: Plot values from step 3 for each dimension on the SPACE matrix on the appropriate axis.
• Step 5: Add the average score for the competitive advantage (CA) and industry strength (IS) dimensions. This will be your final point on axis X on the SPACE matrix.
• Step 6: Add the average score for the SPACE matrix environmental stability (ES) and financial strength (FS) dimensions to find your final point on the axis Y.
• Step 7: Find intersection of your X and Y points. Draw a line from the center of the SPACE matrix to your point. This line reveals the type of strategy the company should pursue.
• SPACE matrix example
• The following table shows what values were used to create the SPACE matrix displayed above.
• Each factor within each strategic dimension is rated using appropriate rating scale. Then averages are calculated. Adding individual strategic dimension averages provides values that are plotted on the axis X and Y.
• Where do I go next?
• The SPACE matrix can help to find a strategy. But, what if we have 2-3 strategies and need to decide which one is the best one? The Quantitative Strategic Planning Matrix (QSPM) model can help to answer this question.
• Should you have any questions about the SPACE matrix, you might want to submit them at our management discussion forum.

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Strategic-planning Process

Strategic-planning Process

The strategic planning process is made up of two basic activities:                      
• strategy formulation (developing the strategy),
• strategy implementation(putting the strategy into action).
The elements involved in both strategy formulation and strategy implementation can be described in schematic model. Although the general strategic management model can be applied to strategic planning, it is more beneficial to use a model exclusively designed for strategic planning.
The description of the strategic planning process combines the planning steps suggested by several writers. This model consists of the following nine steps:
1. Define the organization's mission. A mission defines organization's purpose and that essentially seeks to answer the question: What business are we in?
2. Establish objectives. Objectives translate the mission into concrete terms. Setting the objectives of the organization is the most essential step in the strategic planning process.
3. Analyzing the organization's resources. This analysis is necessary to identify the organization's competitive advantages and disadvantages.
4. Scan the environment. Management will want to scan its environment to identify various political, social, economic, and market factors that could impact on the organization.
5. Make forecasts. The fifth step is a more detailed effort to forecast the possible occurrence of future events.
6. Asses Opportunities and threats. Opportunities and threats may arise from many factors. Thus, the same environment that posed a threat to some organizations offered opportunities to others.
7. Identify and evaluate alternative strategies. In a given instance, a variety of alternatives exist. Management should seek a set of alternatives that can exploit the situation.
8. Select strategy. Once the alternative strategies have been enumerated and appraised, one will be selected.
9. Implement strategy. Once the strategy has been determined, its must be incorporated into the daily operations of the organization. The best of strategies can go awry if management fails to translate the strategy chosen into programs, policies, budgets, and other long-term and short-term plans necessary to carry it out.

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The 3 Different Types of Strategies in Business

           In his landmark 1980 book Competitive Strategy, Harvard professor Michael E. Porter laid out three different types of strategies in business: differentiation, overall cost leadership, and focus. Any of these business strategies can be effective in the long term, but each has its own priorities for resource allocation. Which fits your business growth model?

Differentiation

Companies undertaking this strategy must prove to the customer that they are different (and better) than the competition. A differentiation business strategy is less concerned with price. Your company can command higher prices for products or services because they stand out in some way; they are worth the extra money. Your long-term strategy is to cut costs in the areas that don't contribute to your differentiation, so you can remain cost competitive. Starbucks, for example, charges more for its coffee than Dunkin' Donuts. But it differentiates itself by focusing on high-quality products and sustainability, and by cultivating a brand image as the coffee of choice for the busy professional (while 'America runs on Dunkin'' doesn't have that same exclusivity).

Cost Leadership

This is an easy business strategy to explain, but it's difficult to implement. The whole goal here is to be the cheapest provider of your product or service. Wal-Mart is the perfect example of cost leadership. They focus on providing a wide range of goods— – you can buy almost anything there, from Easter baskets to caskets—at rock-bottom prices. For most small business professionals, this strategy is out of reach. It works for large companies because they are selling on a massive scale. But you don't want to reduce your profit margins when you have fewer customers.

Focus

Unlike differentiation and cost leadership strategies, a niche business strategy focuses on one small portion of the market. You're fulfilling a need that perhaps fewer people have, but there's less competition from other businesses. Think about craft beers, or nursing scrubs. Your marketing efforts are targeted, which can make them easier to hit. If you're advertising your dog food in Dog Fancy magazine, you're definitely reaching people who own or are interested in dogs.  

So What's My Strategy?

Small business owners and professionals are unlikely to win the cost game. Instead, differentiate yourself from the competition, or focus on a narrow group of consumers rather than the entire population. Credibility and name recognition is essential in all different types of strategies in business. Advantage Media Group can help you to establish trust and give you that edge.

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What Is Vertical Integration?

Vertical integration is a business strategy used to expand a firm by gaining ownership of the firm's previous supplier or distributor. Many firms use vertical integration as a way to reduce cost and increase efficiency, which results in increased competitiveness. Firms engage in two types of vertical integration.

• Forward integration
• Backward integration

Forward integration is a method of vertical integration in which a firm will gain ownership of its distributors. Backward integration is a method of vertical integration in which a firm will gain ownership of its supplier. Firms may utilize a forward or backward integration strategy or they may use a combination of both known as a balanced integration strategy.

How a Vertical Integration Strategy Is Used

Implementing a vertical integration strategy, whether backward or forward, allows a firm to have greater control over its process. For instance, for the past twenty years, Bob's family has owned a pig farm. The pig farm makes just enough that it supports his family. Bob wanted to increase his profits and his ability to compete against other farmers in the market. Bob read an article about vertical integration and decided to implement a forward integration strategy in order to increase his profits.

Bob thinks that he has the best pigs around, and if he started a BBQ restaurant, featuring his pigs, he could increase his profits. He owns the farm where the pigs are raised, so he has greater control over things like cost and quality. Bob's restaurant did so well that profits soared, and he decided to utilize a backward integration strategy as well and buys the feed store that supplied him with food for his pigs.

Advantages of Vertical Integration

Introducing a vertical integration strategy can have many advantages for a company, such as:

• Increased competitiveness
• Greater process control
• Increased market share
• Increased supply chain coordination
• Decreased cost

Many companies use this strategy because it may decrease cost by eliminating price markups associated with buying a product from a third party. Starbucks, for instance, is not just a coffee house. They also grow their own coffee beans. Starbucks coffee can also be found packaged and sold in your local grocery store.

Vertically integrated companies are also better able to control quality and coordinate the delivery of raw materials or other supplies. Having this level of control allows companies to increase their supply chain efficiency.

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Planning Ahead: Business Strategy in 2017

There is a phrase which perfectly encompasses the month of November: ‘To be early is to be on time, and to be on time is to be late.’ When it comes to planning the impending year, November is the month which sets the dividing line between strategically on time and strategically late. The New Year waits for no one and your business strategy for 2017 must be in place long before January 1. Here are a few thoughts to keep in mind ahead of the holiday rush.

Take a Look Around

Start by revisiting your business plan. Ensure it is still aligned with your company goals, and make plans to change anything that does not fit with your expectations for 2017. However, it is nearly impossible to know what changes need to be made without reviewing the previous year. Take stock of which strategies equalled success and which ones squandered company time. What was achieved with each company milestone? Taking a closer look at your company’s past year will provide the baseline needed for smarter allocation of resources in the year to come.

Beyond the business plan, it is key to take this time to look at your employees. Offer them feedback so every team member knows where they stand and what to expect. Good record keeping will keep everyone on the same page.

Investing is the Key to the Future

Now is the time to supercharge your business. Two components for consideration are people and technology. If 2015 was a success, it’s possible that your business has become increasingly busy. If 2015 left more to be desired, it’s possible a fresh take is what’s needed. Either way, more feet on the floor could be the answer – whether that’s additional team members to take on overloaded tasks or a new executive role to bring an outside perspective.

Technology is another area of investment that cannot be overlooked. Even the grandest plans can be held back by outdated hardware or software. Make the jump to a new computer or programming that can help your company to be more efficient, more creative, and more successful. We have a great recommendation that supports all three of those initiatives.

Motivate Your Employees

The end of year slump is real. If you want your team’s motivation to last well through their New Year’s resolutions, then practice makes perfect. Afterall, it takes about a month (give or take, according to this study) to form a habit, and only eight percent of people succeed in their own resolutions. You can motivate your team not only by being a good leader but by giving clear and actionable goals. You cannot go it alone – it is crucial to have the support and energy of your team behind every strategic goal.

So, take a good look around your current organization. What was great and what needs to be changed? After all, a goal without a plan is just a dream and planning ahead means 2017 won’t take you by surprise.

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