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Michael Porter(1996)
strategy is about achieving
competitive advantage
through being different –
delivering a unique value
added to the customer,
having a clear and
enactable view of how to
position yourself uniquely in
your industry.
STRATEGY DEFINED
Gary Hamel (2000)
the best strategy is geared
towards radical change and
creating a new vision of the
future in which you are a
leader rather than a follower
of trends set by others.
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John Kay (2000)
strategy is no longer about
planning or ‘visioning’ –
because we are deluded if
we think we can predict or,
worse, control the future – it
is about using careful
analysis to understand and
influence a company’s
position in the market place.
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Companies and armies have much in common - strategies of deterrence, offence,

defense and alliance.

Some of the key common acts:

• Probing opponents’ weaknesses;
• Withdrawing to consider how to act, given the knowledge of the opposition
generated by such probing;
STRATEGY
• Forcing opponents to stretch their resources;
AND
MILITARY • Concentrating one’s own resources to attack an opponent’s exposed position;
• Overwhelming selected markets or market segments;
• Establishing a leadership position of dominance in certain markets;
• Regrouping one’s resources,
• Deciding where to make the next thrust;
• Expanding from the base thus created to dominate a broader area.

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• Position for long-term survival in a

competitive environment.
• Analysis, decisions, and actions to create
STRATEGIC and sustain competitive advantages.
MANAGEMENT
• Art and science of formulating, implementing,
and evaluating cross-functional decision to
achieve the objectives

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STRATEGIC SESSION 1
MANAGEME
NT MODEL

Perform
External
Audit

Implement
Develop Generate, Implement
Establish Strategies – Measure and
Vision and Evaluate and Strategies –
Long-Term Mkt, Fin, Evaluate
Mission Select Managemen
Objectives Acc, R&D, Performance
Statements Strategies t Issues
MIS Issues

Perform
Internal
Audit

Formulation Implementation Evaluation

Source : Fred R. David, How Companies Define Their Mission, Long Range Planning (June 1988)

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CASES

Garment units in Nepal can now be considered as extinct as they failed to formulate
strategy from changing global environment mainly a result of implementation of
“Multi-fiber Agreement” whereby the units are required to compete on their core
strength instead of supernatural protection of various governments.

Please look into the model of Strategic Management and discuss where they have
gone wrong?

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CASES

Gorkha Brewery has a virtual monopoly. It went through a struggle during the initial
period with high level of competition from Star, Golden Eagle, Iceberg and San
Miguel. Some of the perceived success factors are:
• Brand, sales, price and promotion plan
• Capacity planning
• Managing losses and financial plan

Again, please look into the model of Strategic Management and discuss about its
success factors in the context of implementation of the overall process.

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Has Education become an Industry?
CASES
Article Published in The Himalayan Times (Perspective) date 24th April 2011
Every year during the new academic session, the education sector of Nepal is engulfed with plethora of problems.
This year is no exception; in fact the stakes are even higher with group of human rights activists even seeking
Supreme Courts intervention in controlling the fees charged by private schools and regulating the public and
government run schools.
In the name of modernization and updating curriculum most private schools are cheating parents and there is no
mechanism to monitor them – President of Guardian’s Association of Nepal
In the nature of increasing teacher’s salary, private schools are hiking tuition fees annually, but it is surprising that
teachers’ are not paid even the minimum salary as directed by the government. – President of Institutional School
Teachers’ Union
It is just not possible for private educational institutions to provide free education – Principal of Galaxy Public School
Government should provide subsidies and come up with flexible packages for those who cannot afford higher fees in
private schools. They should also make provisions for imparting free education for such children – Principal of
Galaxy Public School
Any ordinary school in India would charge Rs. 3,000 as its monthly fee. So how can people say that our education is
expensive? – Founder Trustee of LRI School.
Parents are more inclined to to private schools and their involvement is greater as they pay higher fees. While the
government schools, parents are less bothered about the responsibility towards the children – Joint Secretary of
Ministry of Education

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VISION AND MISSION

A business is not defined by its name, statutes, or

articles of incorporation. It is defined by the business
mission. Only a clear definition of the mission and
purpose of the organization makes possible clear and
realistic business objectives – Peter Drucker

A corporate vision can focus, direct, motivate, unify, and even

excite a business into superior performance. The job of a
strategist is to identify and project a clear vision – John Keane

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VISION AND MISSION

Vision Statement
What do we want to become
or why do we exist?
• Vision statements are future-focused and written with
the end result in mind.

Mission Statement • Mission statements are focused in the present and

Enduring statements of
purpose that distinguish one
business from other similar
firms
state the fundamental purpose of your business.
• Developing a mission statement compels strategists
to think about the nature and scope of present
operations and to assess the potential attractiveness
of future markets and activities. In other words a
mission statement broadly charts the future direction
of an organization.

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VISION AND MISSION

Which Comes First: The Vision or The Mission?

For a new business just starting up, a larger company getting ready to
add a new program, or an existing organization planning to overhaul
current services ideally should write the vision statement first.
An established business with a mission statement already in place,
should use the mission to guide writing of vision statement.

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VISION AND MISSION

Contents of a Vision Statement

Few Important Things to Keep in Mind When Writing Vision Statement:
• Describe outcomes that are five to ten years out.
• Dream big and focus on success.
• Write vision statement in the present tense.
• Infuse passion.
There is no space limit when writing a vision statement. They often
contain one or more paragraphs. Write as much as you need to in
order to create a dynamic mental picture of your business that will
serve to energize and inspire you and your team.

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VISION AND MISSION

Vision and Mission

A business mission is the foundation for priorities, strategies, plans,
and work assignments. It is the starting point for the design of
managerial jobs, and above all, for the design of managerial
structures. Nothing may seem simpler or more obvious than to know
what a company’s business is. A steel mill makes steel, a railroad runs
trains to carry freight and passengers, an insurance company
underwrites fire risks, and a bank lends money. Actually, “What is our
business?” is almost always a difficult question and the right answer is
usually anything but obvious. The answer to this question is the first
responsibility of strategists. Only strategists can make sure that this
question receives the attention it deserves and the answer makes
sense and enables the business to plot its course and set its
objectives.

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VISION AND MISSION

Why Mission Statement

• Unanimity of purpose within the organization
• Allocating organizational resources
• General tone or organizational climate
• Focal point for organization’s purpose and direction
• Translation of objectives into a work structure
• Specify organizational purposes
• Translate the purposes into objectives in such a way that cost, time,
and performance parameters can be assessed and controlled

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VISION AND MISSION

Characteristics of a Mission Statement

• Should not be that specific that it stifles management creativity
• Should not be too general so that it becomes dysfunctional
• Broad to cover interest of all stakeholders
Stakeholders:
Individuals or groups of individuals who have a special stake or claim in the
company viz. employees, managers, stockholders, board of directors, customers,
suppliers, distributors, creditors, government, unions, competitors, environmental
groups, and the general public.

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VISION AND MISSION

Components of a Mission Statement*

According to Bart (1997), the commercial mission statement consists of
3 essential components:
• Key market – who is your target client/customer? (generalize if
needed)
• Contribution – what product or service do you provide to that client?
• Distinction – what makes your product or service unique, so that the
client would choose you?
McDonalds - "To provide the fast food customer food prepared in the same high-quality manner
world-wide that is tasty, reasonably-priced & delivered consistently in a low-key décor and
friendly atmosphere."
• Key Market: The fast food customer world-wide
• Contribution: tasty and reasonably-priced food prepared in a high-quality manner
• Distinction: delivered consistently (world-wide) in a low-key décor and friendly atmosphere.
* missionstatement1358fst.blogspot.com

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VISION AND MISSION

Components of a Mission Statement*

• Customer/Marketing
• Product or Service
• Geographic Domain
• Technology
• Concern For Survival
• Company Philosophy
• Self (Business) Concept
* http://www.yourbusinesspal.com/mission_statement.html

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VISION AND MISSION

Process of Generating Mission Statement

• Select several articles of mission statements and and ask all managers to read the
background information. Ask them to develop the mission statements. A facilitator or
committee to assimilate all such statements and prepare a draft to circulate to the
managers. After obtaining feedbacks and agreeing with them in a common mission
statement it is easy to expect their cooperation while implementing and evaluating
activities.
• Discussion group of managers to develop and modify mission statement
• Outside facilitator or consultant to manage the process or draft a language
• Decision on the communication process of the mission throughout the organization is
also equally important
• Resolution of divergent views
The process of developing a mission statement should create an “emotional
bond” and “sense of mission” between the organization and its employees
Campbell and Yeung

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VISION AND MISSION

Vision Statements for New and Small Firms

Vision statements and mission statements are very different. A vision statement for a new
or small firm spells out goals at a high level and should coincide with the founder's goals
for the business. Simply put, the vision should state what the founder ultimately envisions
the business to be, in terms of growth, values, employees, contributions to society, and the
like; therefore, self-reflection by the founder is a vital activity if a meaningful vision is to be
developed. As a founder, once you have defined your vision, you can begin to develop
strategies for moving the organization toward that vision. Part of this includes the
development of a company mission.

http://www.inc.com/resources/startup/articles/20050201/missionstatement.html

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VISION AND MISSION

Mission Statements for New and Small Firms

The mission should answer three questions:
• What do we do?
• How do we do it?
• For whom do we do it?
What do we do? This question should not be answered in terms of what is physically
delivered to customers, but by the real and/or psychological needs that are fulfilled when
customers buy your products or services. An excellent illustration of this is a business in
the Twin Cities that imports hand-made jewelry from east Africa. When asked what her
business does, the owner replied, "We import and market east African jewelry." But when
asked why customers buy her jewelry, she explained that, "They're buying a story in where
the jewelry came from.”

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VISION AND MISSION

Mission Statements for New and Small Firms

How do we do it? This question captures the more technical elements of the business.
Your answer should encompass the physical product or service and how it is sold and
delivered to customers, and it should fit with the need that the customer fulfills with its
purchase.
In the example above, the business owner had originally defined her business as selling
east African jewelry and was attempting to sell it on shelves of boutique retail stores with
little success. After modifying the answer to the first question, she realized that she
needed to deliver the story to her customers along with the product. She began organizing
wine parties that included a slide show of east Africa, stories of personal experiences
there, and pictures and descriptions of the villagers who make the jewelry. This method of
delivery has been very successful for her business.

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VISION AND MISSION

Mission Statements for New and Small Firms

For whom do we do it? The answer to this question is also vital, as it will help you focus
your marketing efforts. Though many small business owners would like to believe
otherwise, not everyone is a potential customer, as customers will almost always have
both demographic and geographic limitations. When starting out, it is generally a good
idea to define the demographic characteristics (age, income, etc.) of customers who are
likely to buy and then define a geographic area in which your business can gain a
presence. As you grow, you can add new customer groups and expand your geographic
focus.

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VISION AND MISSION

Mission Statements for New and Small Firms

An additional consideration with mission statements is that most businesses will have
multiple customer groups that purchase for different reasons. In these cases, one mission
statement can be written to answer each of the three questions for each customer group or
multiple mission statements can be developed. Also, as a final thought, remember that
your vision and mission statements are meant to help guide the business, not to lock you
into a particular direction. As your company grows and as the competitive environment
changes, your mission may require change to include additional or different needs fulfilled,
delivery systems, or customer groups. With this in mind, your vision and mission should be
revisited periodically to determine whether modifications are desirable.

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OBJECTIVES

Long-Term Objectives
• Specific Results that the organization wants to achieve
• Should be for more than one year
• It can be : an aid in evaluation, create synergy, reveal priorities, focus
coordination, be a basis for effective planning, organizing, motivating
and controlling activities.
• Objectives should be challenging, measurable, consistent, reasonable
and clear. SMART

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NABIL
Vision
At Nabil, our Vision is to be a bank for all across all geopolitical zones and
socioeconomic strata of the nation that can provide myriads of financial solutions
and create values for all our stakeholders, to stand in the community with our
economic and civic roles. We look forward to emerging as a first rate bank across all
strata of the nation.
Mission
We at Nabil work together up to our vision and to bring it into reality. Our mission is therefore to prove
that Nabil is driven by he spirit for realizing those visionary aspirations. With that end in view, we work in
partnership with our stakeholders and the community at large. Our roadmap to reaching where we have
set our mind on is by maneuvering our strategic action plans through a well-teamed and synergistic
workforce into industrial end products – our customized services. Our approaches are to differentiate our
products by reengineering them with the best technologies and management philosophy keeping in focus
our customers’ satisfaction over and above everything else at all times. We have set our goals and
objectives to hone the skills of inspired HR force and tailor our products and services to that end. With an
all-inclusive approach Nabil engages in customizing ranges of products catering to the entire gamut of
society from financing megaprojects to underprivileged individuals and promoting enterprises across all
segments of society by adding values to nation building endeavours. We are branching out on a national
scale through our wide-ranging points of representation representing different geographic and economic
zones along with our broad global network as a 1st CHOICE PROVIDER OF COMPLETE FINANCIAL
SOLUTIONS.

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SURYA
NEPAL
Vision
To be an internationally benchmarked multi-business corporation in Nepal,
delighting domestic consumers with a proud “Made in Nepal”. To be a partner in
nation-building and creating enduring values for all stakeholders.

DABUR
Vision
NEPAL "Dedicated to the health & well being of every household"

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SAJHA
YATAYAT To be the leading transport agency that providing affordable and efficient urban and inter-district
public transportation services in Nepal, as well as flag-carrier cross border service to regional cities.
The broad objectives of SY are as following:
• The short-term strategy of SY is to revive its operations in Kathmandu Valley's urban space, with
the aim of generating public goodwill as well as visibility, while maximizing the sustainability
factor before the organization enters into a more profitably restructured entity in the medium and
long-term.
• The medium-term strategy of SY includes the following:
• Expand urban services in Kathmandu Valley and other cities of Nepal
• Initiate inter-district transport services in Nepal
• Initiate flag-carrier services to neighboring countries.
• Optimize use of the company's Pulchowk grounds and set up operations from cost-effective
locations in Kathmandu Valley and in other cities.
• The long-term strategy of SY is to provide multimodal (efficient diesel buses, electric trains and
rails, tramways, ropeways, etc) transportation services and operate from various
regions/provinces of Nepal.

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