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Deciding on the Strategic Direction
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Introduction
The decision on the strategies that a firm should adopt requires a clear strategic direction.
The strategic direction clarifies the future that a firm envisions, its overall purpose, and the
values that ought to guide its operations (Gamble et al., 2019). Without a clear picture of the
future that an organization envisions, its overall purpose, and the principles that guide an
organization, it would be difficult to develop strategies that will benefit the organization
immensely. The strategic direction development process can ensure that a firm adopts a fitting
strategic vision. Effective strategic thinking is also critical to the adoption of the right strategic
direction. A decision model, like the SWOT model, can help adopt a fitting strategic direction.
Strategic Direction Setting Process
Organizations should follow several steps when deciding on the strategic direction to
adopt. Step one is to wrestle on the directional path that the firm should take (Gamble et al.,
2019). The wrestling involves strategic thinking regarding the direction the firm should take and
discussing and debating on the same. When wrestling concerning strategic direction, the firm
should consider the products or services it considers to offer customers, markets and customers
to target, and technologies to adopt (Gamble et al., 2019). Step two in the process is the creation
of a strategic vision. A vision statement articulates a firm’s aspiration (Gamble et al., 2019). A
strategic vision aids steer a company towards the desired future.
Step three in the strategic direction setting process is the setting of a strategic mission. A
strategic mission communicates the overall purpose of an organization. A strategic mission for a
business organization specifies the firm’s customer-market-technology focus (Gamble et al.,
2019). The achievement of a firm’s strategic mission helps a firm move closer to achieving its
strategic vision (Bowen, 2018). Step four in the strategic direction setting process is agreeing on
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core values. Core values are principles that ought to guide organizations employees on how to
act and behave (Bowen, 2018). The fifth step in the process is linking the vision and mission
statements with core values (Gamble et al., 2019). The linkage helps ensure that the values guide
the pursuit of the vision and mission.
Strategic Thinking
When engaging in strategic thinking regarding the strategic direction to adopt, a firm
should seek to discover its power. Rumelt (2011) argues that the discovery of an organization's
power is critical to the adoption of a good strategy. Rumelt (2011) also observes that a natural
advantage that many good strategies possess arises from an adequate understanding of strengths
and weaknesses when developing the strategies. Understanding a firm’s powers in the strategic
direction development process would help develop an excellent strategic direction. The strategic
thinking directed towards the development of an organization’s strategic direction should focus a
lot on discovering an organization’s powers and weaknesses.
Rumelt (2011) uses David and Goliath's Biblical story to highlight the crucial importance
of discovering powers and weaknesses in the strategic planning process. Goliath was a Philistine
soldier who was over nine feet tall and hard to defeat in battle (Rumelt, 2011). David was a small
boy who was not old enough to be a soldier. David understood his strengths and weaknesses
quite well, and the understanding led him to adopt a fighting strategy that would help him with
the battle. David used a sling to throw a stone at Goliath, and the stone killed the huge soldier.
An adequate understanding of a firm’s strengths and weaknesses can help the firm adopt a
winning strategic direction like it helped David a strategy that was effective in defeating Goliath.
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Decision Model
One of my favorite decision models that would apply in the strategic direction
development process is the SWOT analysis model. The wrestling regarding the directional path
to adopt requires a detailed analysis of a firm's strengths, weaknesses, opportunities, and threats.
Such an analysis would help select the best strategic direction (Krogerus & Tschäppeler, 2018).
Without an adequate understanding of a firm’s internal strengths and weaknesses and the
opportunities and threats existing in its operating environment, it would be difficult to adopt
strategic visions and missions that would steer the firm towards success (Sammut‐Bonnici &
Galea, 2015). The technique can also be used to analyze competing directional paths and select
the path that will maximize returns for a firm.
Conclusion
A firm has to agree on the strategic direction to adopt strategies that will help move in the
set direction. Steps in the strategic direction setting process are wrestling on the directional path
to take, strategic vision creation, strategic mission creation, agreeing on core values, and linking
vision and mission to score values. The discovery of powers and weaknesses is critical in
strategic thinking regarding the selection of a strategic direction. The SWOT analysis is a potent
model in the discovery of powers and weaknesses.
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References
Bowen, S. A. (2018). Mission and vision.=The international encyclopedia of strategic
communication, 1-9. https://doi.org/10.1002/9781119010722.iesc0111
Gamble, J., Peteraf, M., & Thompson, A. (2019).=Essentials of Strategic Management, McGraw
- Hill Higher Education (6th ed.), New York, NY.
Krogerus, M., & Tschäppeler, R. (2018). The decision book: 50 models for strategic thinking.=W.
Norton & Company, Inc., New York, NY.
Rumelt, R. (2011). Good strategy/bad strategy: The difference and why it matters. Crown
Business, New York, NY.
Sammut‐Bonnici, T., & Galea, D. (2015). SWOT analysis.=Wiley Encyclopedia of Management,
1-8. https://doi.org/10.1002/9781118785317.weom120103
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Annotated Bibliography
Bowen, S. A. (2018). Mission and vision.=The international encyclopedia of strategic
communication, 1-9. https://doi.org/10.1002/9781119010722.iesc0111
Summary of Key Points
The publication discusses what vision statements and mission statements are and
their importance to organizations. According to Bowen (2018), vision and mission
statements are critical to organizations' success as they give the organization strategic
direction. Bowen (2018) observes that vision statements specify where an organization
would like to be eventually. Thus, vision statements determine the long-term goals
adopted by organizations. The author differentiates mission from vision statements by
arguing that mission statements are concrete and prioritize organizational activities. The
article also emphasizes the importance of core values to the development of missions and
visions.
Quality of the Publication
The publication is of superior quality. The publication is of superior quality
because it is a research article published in a peer-reviewed journal. The article is
published in the International Encyclopedia of Strategic Communication journal. The
particular journal is well respected and publishes great quality articles. The second reason
why the publication is of superior quality is that it is thoroughly researched.
Quality of the Author(s)
The publication is authored by a great quality author. Shannon A. Bowen is a
scholar whose research focus is on management and strategy, among other areas. Bowen
has published several other peer-reviewed research papers.
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Where the Article Fits in the Discussion
The area where the article fits in the discussion is in the discussion of the steps of
strategic direction development. Vision statements and mission statements are critical to
the development of a strategic direction. The article discusses the importance of the two
statements to an organization's strategic direction and the link between an organization’s
core values and the statements.
Sammut‐Bonnici, T., & Galea, D. (2015). SWOT analysis.=Wiley Encyclopedia of Management,
1-8. https://doi.org/10.1002/9781118785317.weom120103
Summary of Key Points
The purpose of the research article is to expound on the SWOT analysis decision
model to the reader. The publication states that the SWOT analysis is a tool that helps
organizations analyze issues in their internal and external environments that may enhance
or hinder their performance. Sammut‐Bonnici and Galea (2015) observe that the SWOT
tool's strengths and weaknesses regard the organization's internal environments while the
opportunities and threats components regard external environments. The authors
emphasize the importance of the tool in organizational strategic planning. The tool
informs the area of improvement and factors that provide businesses competitive
advantages.
Quality of the Publication
The publication is of great quality. One reason why the article is of great quality is
that it is a thoroughly researched scholarly article. The authors of the publication cite
reliable sources to defend the claims made in the article. Another reason why the article is
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of great quality is that it is a peer-reviewed article published in a reputable journal. The
article is published in the Wiley Encyclopedia of Management journal.
Quality of the Author(s)
The publication is authored by great quality authors. Tanya Sammut‐Bonnici and
David Galea have published many other peer-reviewed scholarly articles on business and
economics topics. The two academics are quite experienced in writing a superior quality
article.
Where the Article Fits in the Discussion
In the decision model section of the article, the SWOT analysis model is
discussed as a useful model the strategic direction development. The article explains the
usage of the SWOT model, and it provides vital support for the usefulness of the model
in analyzing an organization's internal and external environments for planning reasons.
