Strategic thinking, mission and objectives formulation

The formulation of strategic management mission, objectives and vision is preceded by the analysis of the internal and external environment, as mentioned before. This problem is thoroughly elaborated in management, strategic management, market-ing and strategic marketmarket-ing scientific literature. Because of this fact, we will not pay particular attention to this area of strategic management.

Strategic management and system theories are linked to strategic thinking that is in particular characterised by the freedom of entrepreneurial activity, pre-dominant interest in the maximisation of consumer’s personal utility and feasibility conditioned by rationality and ability to influence its environment. These elements should be actively present and dominant in the development strategy of domestic tourism in Slovakia. The consumer – the tourist – has an array of alternatives to choose from, simultaneously, strategy developers must be able to influence the ex-ternal environment. M. Gúčik also draws attention to this fact, while emphasizing that it is possible to influence the impact of the external environment on tourism, providing the tourism system is united and its units cooperate.

The principles of strategic thinking outline the ways of analytic thinking that are intended to facilitate the strategy formulation which is supposed to assure prosperity even in uncertain conditions. It is advisable to perceive these principles coherently; otherwise, an isolated approach causes inefficiency. Major principles of strategic thinking are variation, continuity, system approach, interdisciplinar-ity, creativinterdisciplinar-ity, time management, feedback oriented thinking and risk taken into account. The variation principle expects the existence of strategy alternatives (vari-ants) that will come in play if possible changes of the external environment oc-cur. The key concept of the continuity principle lies in the need of a permanent strategy formulation and correction. The system approach is based on the complex comprehension and assessment of individual effects. Interdisciplinarity involves a combination of different scientific disciplines. Creativity is a typical feature of strategic thinking and it is driven by innovative ideas. Time management develops the ability to focus on important tasks and to filter out the less important ones.

Feedback-oriented thinking is significant in regard to the processes and changes that appear inside the organisation and that influence its strategy, so that indi-vidual phases of the strategy cannot be considered as closed. In addition, Z. Souček perceives strategic thinking in terms of exact, intuitive and aggregate thinking.²²

22 Souček Z., Strategické řízení, SNTL/Alfa, Praha 1986, p. 20–50.

1. Theoretical approaches of strategic management research and its implementation in tourism

The author emphasises the need to determine aggregate indicators of the strategy rather than detailed indicators typical for tactical and operational managing.

Š. Slávik perceives strategic thinking as the opposite of linear and mechanical thinking that tends to come up with repetitive and verified solutions and follow already proven patterns.²³ Based on the provided characteristics and definitions of strategic thinking, we may conclude that it is the contrary to the tendency of being satisfied with the objectives that rely on the safe past and neglect risks. Strategic thinking is understood as a continuous development of managerial thinking that has followed the phase of mechanical and intuitive thinking. Many managers confuse intuitive thinking with strategic thinking and make their decisions based on the assessment of an individual element or subsystem, which might not be particularly relevant to the functions of the system.

The existence of strategic thinking in a modern organisation is an inevitable precondition for the mission statement. Whether there is an essential need for the mission formulation for the organisation or any other social system to operate effectively, remains questionable. The mission should not be confused with the objectives, since they might be revealed neither to the public nor to employees.

The mission states the major principles, priorities and rules of the organisation that summarize its business manners. The role of the mission statement is emphasized in regard to domestic tourism in Slovakia that is insufficiently developed and lacks effort. Primary and secondary offer analyses result in the identification of the domestic tourism development potential. The significance of domestic tourism development has been neglected if not completely forgotten in the recent years.

Consequently, it is necessary to point out the basic interrelations and causes that represent impulses for the domestic tourism development. C. Bowman sees the importance of the mission statement in the determination of:

respected values and beliefs;

– field of action that covers the future needs to be satisfied, chosen markets – and ways of their needs’ satisfaction, product distribution technologies;

requirements of the stakeholders (employees, local residents, self-governing – units, etc.);

opinion on: growth, decentralization, financing, innovation, etc.

– ²⁴

The mission in strategic management should not merely be a summary of idle words or blank collocations, hardly comprehensible for a common reader. On the contrary, it is aimed at a broad audience of interested persons. The intention is to intermediate what are the needs our products (bundled services) satisfy.

Furthermore, target groups of inhabitants must be specified in order to be offered

23 Slávik Š., Strategický manažment, Ekonomická Univerzita, Bratislava 2005, p. 33.

24 Bowmann C., Strategický management, Grada, Praha 1996, p. 14.

our products and values. The character of values is of significant importance, too.

A quality mission statement formulation might undoubtedly be a time consum-ing process, since it is expected to intermediate the purpose of the organisation’s existence and its activity ahead of time. It may take a long time and a glimpse of hesitation to set the mission and define the objectives if the organization lacks new products’ launching experience. On the contrary, experienced managers, with strategic thinking, skills and conditions for development tend to pay more attention to strategy formulation, implementation and control. Emphasizing the mission may partly substitute the internal and external analysis of the organization, which is sometimes a resource of time or demanding of information. Reasons stated in favour of the mission establishment involve in particular an occasional downturn of organization’s performance, efficiency fluctuations, competitors’ success that influences activities of the organization. Š. Slávik emphasizes the role of the mission in terms of its ability to differentiate the organization from other competitors, gain self-identity and uniqueness, and set the driving force. ²⁵

A correct mission formulation serves as a navigator that keeps the organization from accepting incorrectly formulated objectives, ideas or projects that do not follow the mission.

M. Sedlák points out the fact that accurately set objectives are the basic pre-condition for success and stability of the organization.²⁶ Strategic objectives are recognizable in two forms, general and specific. General strategic objectives are mostly of qualitative character, outlining universal aspirations of the organization.

Specific strategic objectives (with reference to subject, time and quantity) can be controlled continuously. The first group includes e.g. organization’s growth, innova-tive objecinnova-tives and dominant position attainment. The latter lists time related sales increase, growth of new products market share, growth of their share on the profit, concrete market share. Objectives should be assigned to all areas with the influence on the organization’s long-term performance and prosperity. The hierarchy of the objectives is based on their field of action and time span. A broadly formulated mission can be transformed into particular outcomes via objectives. Clearly stated objectives are the core for the evaluation of the mission accomplishment. Objectives represent a commitment for the management to achieve particular outcomes in concrete time. It is useful to involve subordinate managerial levels into objective creation in order to enhance their motivation. The responsibility for objectives’

conceptuality lies on the highest managerial level. Long-term and short term objective horizons are not set in compliance with exact criteria. The character of business activity and the conditions in the sector are of great importance here. The

25 Slávik Š., Strategický manažment, p. 36.

26 Sedlák M., Manažment, IURA EDITION, Bratislava 2009, p. 245.

1. Theoretical approaches of strategic management research and its implementation in tourism

tendency nowadays is to shorten the planning horizons. The objective span depends on its field of action; the long term objective character is more evident in objectives with a greater field of action. Long-term objectives are set for a five-year span and more. They represent the basis for the decisions made in a short-term perspective with the potential to bring outcomes later. Short-term objectives are focused on immediate outcomes that help to achieve long-term objectives accomplishment.

The real content of objectives and their targeting are often a subject of disputes.

Ecological and social objectives are frequently emphasized by organizations; how-ever, their accomplishment is conditioned by the profit gain. The profit gain ori-entation seems successful in a short-term perspective, it may, nevertheless, be the reason for stagnation and downturn related to the development of competitive environment.