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Str2 Process

1. The document outlines a 5-step process for strategic planning: develop a vision, set objectives, craft a strategy, implement the strategy, and evaluate performance. 2. It defines key terms like vision, mission, objectives, and strategy. A vision is a long-term destination, a mission outlines current activities, and objectives convert visions into measurable goals. 3. Strategies are market positions that are informed by evaluating resources and opportunities. Effective implementation requires leadership, aligned policies and culture, and supportive systems.

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Arshad Kawsar
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65 views

Str2 Process

1. The document outlines a 5-step process for strategic planning: develop a vision, set objectives, craft a strategy, implement the strategy, and evaluate performance. 2. It defines key terms like vision, mission, objectives, and strategy. A vision is a long-term destination, a mission outlines current activities, and objectives convert visions into measurable goals. 3. Strategies are market positions that are informed by evaluating resources and opportunities. Effective implementation requires leadership, aligned policies and culture, and supportive systems.

Uploaded by

Arshad Kawsar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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The Process

II

5 Tasks
1. Develop the vision 2. Set up the objectives 3. Craft the strategy 4. Implement the strategy 5. Evaluate the performance

VISION
#1

Vision :

the destination (long term) of a company - where are we heading. what is our business.

Mission :

Mission
Mission relates to the current set of activities, - what we do - why we do Constituent elements of a Mission are, - our business : what? - our customers : who - our customers : located where? - our customers : value (why do they buy)?

Vision & Mission


The two terms are prominently displayed in company publications such as annual reports. The objective is to create emotional bonding between the stake holders. Simplicity is the essence crisp, short and easy to read and understand

Mission why
A well-conceived mission statement - Provides a direction and a purpose - Eliminates risk of decisions in vacuum - Provides employees a sense of purpose - Steers organization into the future

Mission Elements
Customer
Products Market Philosophy

Who
What Where Beliefs, Values, Ethical Priorities

Mission Elements
Self-Concept Public Image Employees - Distinctive Competence - Responsiveness to society/community - Concern, employee as resource but cost

Growth, Survival

- Commitment to growth & financial soundness

Vision Statements
Examples
BA

Worlds favourite airline


McDonalds

To be the world's best quick service restaurant experience.


Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile

Shared Vision
Sharing comes through effective communication. Sharing forges the togetherness between the stakeholders.

Sharing creates the team membership that is much emphasized in the corporate world today.

Management tools in corporate world

OBJECTIVES #2
Objectives convert a vision into measurable outcomes of performance. Must be Specific - 10% increase in sales, not increase sales Measurable - What gets measured gets done Attainable - realistic Responsible - accountable Time specific - deadlines

Classification
Two broad types: 1. Financial (short term)
Rising stock prices

Higher returns on invested capital

2.

Strategic (non-financial, long term)


Mainly competitor focused,
e.g. unseating a competitor

FINANCIAL
Revenue growth
Higher ROI Rising stock prices

Stable earning during recession

NON-FINANCIAL
Bigger market share
Higher product quality More attractive product line than rivals

Wider geographic coverage than rivals

Financial vs Non-financial
Short term vs Long term There can be clashes between the two types of objectives e.g. to retain or to distribute profit? Financial objectives are tempting and can be imposing in difficult times. If the short-term overrides the long-term too often the effectiveness of a company in the longer term can suffer.

STRATEGY #3
Strategy is a Position (market). To decide on a strategy requires homework such evaluation of organizational resources and capabilities against opportunities and threats.

Managerial capability and business creativity are important elements of strategy.

Elements of Strategy
How to grow the business How to satisfy the customers How to outcompete rivals

How to respond to changing market conditions

Strategy Hierarchy
Strategy does not reside in vacuum. It requires input from the functional channels of an organization such as HR, Operations, Marketing and Finance. As an example, consider the BA strategy of being the worlds favourite (position) airline. Following are some functional inputs into this strategy (position); customer services (training, recruitment) efficiency in operation (scheduling, services) creating an image (promotion) financing (equipment, technology)

IMPLEMENTATION #4
Capable leadership is the first requirement in the implementation process. Areas that need attention in implementation include;

- budget (steer resources into critical areas) - policies (supportive to the strategy) - company culture (supportive to strategy) - support systems (decision process, IT) - programs and practices (promote excellence)

Culture
Collection of values and norms that are shared by people and groups in an organization that control the way they interact with each other and with stakeholders outside the organization.

Culture
Values : Beliefs and Ideas that guide the standard of behaviour in an organization

Norms :

Guidelines on the appropriate kinds of behaviour by employees in particular situations

EVALUATION #5
Evaluation requires balancing the present performance against the future requirements. Hence, financial measures alone cannot evaluate a strategic plan as they relate to the past events. Additional measures required to assess the strategic aspects of a business include investments in long-term capabilities (R&D etc.) and customer relationships. Balanced Scorecard is a strategy tool developed to serve the dual purpose to mixing the diverse requirement of present against the future.

Evaluation Perspectives

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