QS Study

Strategic vision is the ideas for the direction and activities of business development. Generally included in a document or statement so all company managers can share the same strategic vision for the company and make decisions according to the shared principals and company mission.

The crucial roles do an entrepreneur play in forming strategic vision are as follows:

Stagnation/problems: No entrepreneurial spirit or strategic thinking exists in the business. The outcome of this situation is stagnation and the possibility of problems in the business. It could also be said that the business exists only for the sake of existence. No opportunistic seeking of new opportunities is found or any strategic planning to cope with change and the meeting of certain challenges.

Opportunity recognition. Creativity, innovation, and an opportunistic seeking for new opportunities may be present, but there is no strategic vision thinking of how to make use of the opportunity that might lead to growth.

Survival. Perhaps this is the most common outcome. Strategic vision thinking or planning takes place, but it is not accompanied by any entrepreneurial spirit. Management tries to answer the questions of why; what and how to proceed with the business, but lack an entrepreneurial way of thinking. The outcome is merely survival with limited growth.

Growth. This is the desired outcome of any small business. As indicated by this model, should both dimensions be present, the result will be growth.

Changing market: Changes in the market conditions, taste of customers; the demand for goods, price, and demand of competitors’ hoods has also an important role.

Technological changes: Changing and developing the technology also have an impact on strategy making.

Economic and regulatory changes in the country: The changes in the economy and the regulations regarding the goods may have the effect in forming the strategy.

Others:

  • Societal and cultural changes,
  • Resources of the organization,
  • A weakness of the organization,
  • Opportunities and threats of the organization.