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The Balanced Scorecard is a widely used method for combining the use of both strategic and
financial objectives, tracking their achievement, and giving management a more complete and
balanced view of how well an organization is performing.
Seeing that lower level strategies are well conceived, consistent, and
adequately matched to the overall business strategy
o Keeping corporate-level officers (and sometimes the board of directors)
informed of emerging strategic issues.
Functional-area strategies concern the approaches employed in managing
particular functions within a businesslike research and development (R&D),
production, procurement of inputs, sales and marketing, distribution, customer
service, and finance.
o Lead responsibility for functional strategies within a business is normally
delegated to the heads of the respective functions, with the general
manager of the business having final approval.
Operating strategies concern the relatively narrow approaches for managing
key operating units (e.g., plants, distribution centers, purchasing centers) and
specific operating activities with strategic significance (e.g., quality control,
materials purchasing, brand management, Internet sales).
o Operating strategies, while of limited scope, add further detail and
completeness to functional strategies and to the overall business strategy.
o Lead responsibility for operating strategies is usually delegated to frontline
managers, subject to the review and approval of higher-ranking managers.
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A companys strategic plan lays out its future direction, business purpose, performance
targets, and strategy.
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