policy exam two

—Process of finding a strategic fit between external opportunities and internal strengths while working around external threats and internal weaknesses

objectives define what the firm wants to achieve, strategies represent pathways by which the organization will achieve the objectives.

broadly specify the major direction of the organization, and link the mission of the organization to organizational actions

establish specific performance targets for a period of 1 year. May focus on rate of sales growth, market share targets, or other targets.

Specific, measurable, aggressive, realistic, time-bound
*technique used to quantify and track the levels of success and failure of objectives

*More complete than financial statement analysis
*looks "forward" as well as "backward"
*includes a customer focus
*considers internal processes (operations)
*assesses organizational growth and innovation
Financial, internal, future, and customer perspectives.

growth measures (eps, sales, gross margin
economic value added
operating metrics

personnel turnover
asset turnover ratios (multiples)
S.G.&A efficiency indicators

Research & Development
business at risk
product line "freshness
pipeline strength

reputation
market share
customer satisfaction and retention
corporate social responsibility

a tool that allows the measurement of strategic objectives across multiple parameters.