- Values, Ethics, and Social Responsibility:
- Values: These are fundamental beliefs or guiding principles that dictate behavior and decision-making within an organization. They define what is important and guide the actions of individuals and the organization as a whole.
- Ethics: Ethics refer to the moral principles and values that govern the behavior of individuals and organizations. It involves distinguishing between right and wrong conduct.
- Social Responsibility: This is the idea that organizations have an obligation to act in ways that benefit society at large. This can include actions to protect the environment, support local communities, and promote ethical business practices.
- Operational and Derived Functional Plans to Implement Strategy:
- Operational Plans: These are detailed, short-term plans that outline specific actions, tasks, and resources needed to achieve specific organizational objectives. They are often developed for a one-year period or less.
- Derived Functional Plans: These are plans that are developed at the functional level (e.g., marketing, finance, operations) and are derived from the broader organizational strategy. They outline how each functional area will contribute to achieving the overall strategic goals.
- Integration and Functional Plans:
- Integration: In the context of strategic management, integration refers to the alignment and coordination of various functions and departments within an organization to work together towards achieving common goals. This ensures that all parts of the organization are working in harmony to execute the strategic plan.
- Functional Plans: These are plans developed by individual departments or functional areas within an organization (such as marketing, finance, HR, etc.). They outline the specific objectives, strategies, and tactics that each functional area will pursue to contribute to the overall organizational goals.
These concepts are crucial in strategic management as they provide the ethical and value-based framework within which strategies are developed and executed. They also guide the translation of high-level strategic goals into actionable plans at the operational and functional levels, ensuring that everyone in the organization is working towards the same objectives. Furthermore, integration is essential for ensuring that all parts of the organization are aligned and working together efficiently.