Chit Ko Ko Win - 2295351 - Strategic Management

Candidate Name - Chit Ko Ko Win
Candidate ID - 2295351
Unit Title - Strategic Management
Name Of Approved Center - Strategic First University , Myanmar.
Strategic Management
Remote Assessment September 2020
Question No-1
Strategic management is the art and science of formulating, implementing and
evaluating cross-functional decision that enable an organization to achieve its
objective. It is also making decisions involves detail planning for long term
performance, it offers numerous benefits for the firm, identifying an organization’s
external opportunities and threats, determining internal strengths and weaknesses,
alternative strategies including financial , non-financial benefits, specific markets,
policies, procedure and operations. A strategic planning is a company’s game plan.
Strategic management focuses on integrating management, marketing, finance and
accounting, production and operations, research and development (R&D), and
information systems to achieve organizational success.
Organization that use strategic management concept are generally more
profitable and successful than those who do not. By doing systemic planning, firm
aware of its weakness, the area to improve and its strength to use for improving
profits. Strategic planning provide goal and standards for the organization to control
their performance and compared against goals to take corrective action if necessary.
Strategists are the individuals most responsible for the success or failure of an
organization
Six strategic management process is the followings-
1. Strategic management Process
a) Identifying organization’s current mission, objectives and strategies
b) External Analysis
c) Internal Analysis
d) Formulating Strategic
e) Implementation
f) Evaluation Result
1. Step-1; Identifying organization’s current mission, objectives and

strategies
Every organization needs a mission, a statement of the purpose of an
organization. It is important for managers to identify the goals currently in
place and the strategic currently being pursued, assessing whether those
goals need to be changed. So it is important for managers to identify the
organizations’ current strategies.
1
2. Step-2; External Analysis

And knowing external conditions will also help the firm to be well prepared
and be ready for external changes and also provides direction, reduce
uncertainty minimize the wastes, sense of direction to top management and
department mangers as well as non-managerial employee. When employees
know where the organization or work unit is going and what they must
coordinate to achieve goal, they can coordinate their activities, cooperation
each other and do what it needs to accomplish those goals.
Step-3; Internal Analysis

The internal analysis leads to a clear assessment of the organization’s
resources (such as financial capital, technical expertise, skilled employees,
and experienced managers) and capabilities in performing the different
functional activities (such as marketing, manufacturing, information systems,
and human resource management) for knowing strengths and weaknesses.
.
Step-4; Formulating Strategies (Using SWOT)
Strategy formulation includes developing a vision and a mission, establishing
long-term objectives, generating, and choosing particular strategies to pursue,
what new businesses to enter, what businesses to abandon, whether to
expand operations or diversify, whether to enter international markets,
whether to merge or form a joint venture, and how to avoid a hostile takeover.
After SWOT analysis complete, managers need to develop and
evaluate strategic alternatives and then select strategic that capitalize on the
organization’s strengths and exploit environmental opportunities or that
correct the organization’s weaknesses and protect against threats.
Step-5; Implementing Strategies
Strategy implementation includes developing a strategy-supportive culture,
creating an effective organizational structure, redirecting marketing efforts,
preparing budgets, developing and using information systems, and linking
employee compensation to organizational performance and to achieving
stated objectives. It is important to understand the appropriate leadership
style, the leadership between strategy and organization structure, relationship
within group and teams, the way to motivate the staffs and organization’s
recruitment policy.
Step-6; evaluating Strategies (Using SWOT)

The objective is to determine what changes are needed to improve the current
strategy or to make strategic adjustment. This step of evaluating results is
important because it makes sure that whether strategies are being achieved.
By doing this analysis, managers also know what actions are needed to make
achieve goals and plans.
2
2. Six guidelines for effective strategic management:

1. Keep the process simple and easily understandable.
2. Eliminate vague planning jargon.
3. Keep the process non routine; vary assignments, team membership, meeting
formats, settings, and even the planning calendar.
4. Welcome bad news and encourage devil’s advocate thinking.
5. Do not allow technicians to monopolize the planning process.
6. To the extent possible, involve managers from all areas of the firm.
Strategic management offer certain financial benefits such as increasing

productivity, sales revenue and chance, increase in profitability. As a non financial
benefit strategic management offers other tangible benefits, such as enhanced
awareness of external threats, improved understanding of competitors’ strategies,
increased employee productivity, reduced resistance to change, and a clearer
understanding of performance–reward relationships. 1
A good strategy and good strategy execution are the most telling signs of
good management. The better conceived a company’s strategy and the more
competently it is executed, the more likely that the company will be a standout
performer in the marketplace. 2
(Word count- 788)
References
1. Fred r.David and Forest r.David, Strategic Management( Six Edition-2017 ), A

competitive advantage approach , concepts and cases, Chapter-1 Strategic
Management essential
2. John E. Gamble,Christi Margaret A. Peteraf , Arthur A. Thompson, Jr. The
Quest for Competitive Advantage , Essentials of strategic Management
( Fourth edition-2015)
3
Remote Assessment September 2020
Question No-2
The Balance Scorecard
The Balanced Scorecard is an important strategy-evaluation tool that allows firms to

evaluate strategies from four perspectives: financial performance, customer
satisfactions, internal business processes, and Organization learning and growth.
These sets of objectives interrelate and many even conflict For example, customers
want low price and high service, which may conflict with shareholders’ desire for a
high return on their investment. The Balanced Scorecard concept is consistent with
the notions of continuous improvement in management (CIM) and total quality
management (TQM) for long-term with short-term concerns.
Financial measures and ratios are vitally important in strategic planning and they
examines six key issues in evaluating its strategies:(1)Customers,(2)
Managers/Employees,(3)Operations/ Processes,(4)Community/Social Responsibility,
(5) Business Ethics/Natural Environment and (6) Financial.
Its analysis requires that firms seek answers to the following questions-
 Is the firm continually improving and creating value along measures such as
innovation, technological leadership, product quality, operational process
efficiencies, and so on?
 Is the firm sustaining and even improving on its core competencies and
competitive advantages?
 How satisfied are the firm’s customers?
The basic form of a Balanced Scorecard may differ for different organizations. Many
company used balanced scorecard as a roadmap that will help their company
connect its strategy. It also for employees to understand how their respective day-to-
day work contributes to the company’s success. 1
1. Financial Performance
The financial perspective included three measures of importance to the shareholder,

profitability, growth, Return-on-capital-employed and cash flow reflected preferences
for short-term results to reduce uncertainty caused by unexpected variations in
4
performance Some stated its financial goals simply: to survive, to succeed, and to
prosper and measured by cash flow, success by quarterly sales growth and
operating income by division, and prosperity by increased market share by segment
and return on equity. 2 Often some argue that, financial performance is the result of
operational actions, and financial success should be the logical consequence of
doing the fundamentals well. Other financial objectives might include:
 Cost savings and efficiencies (for example, a specific goal to reduce

production costs by 10% by 2020)
 Profit Margins (increasing operating profit margins, for instance)
 Revenue sources (for example, adding new revenue channels) 3
2. Customer Satisfaction:
Many companies today have a corporate mission that focuses on the customer and
so they value to customers. Therefore, it facts have to be a priority for top
management. An independent organization conducted an annual survey to get
customers’ feedback and managers need to their general mission statement on
customer service.4
E.g. - A computer manufacturer wanted to be the competitive leader in customer

satisfaction, so it measured competitive rankings. The company got the rankings
through an outside organization hired to talk directly with customers to get high
reliability. The company also wanted to do a better job of solving customers’
problems by creating more partnerships with other suppliers.
The balanced scorecard demands that into specific measures that reflect the factors
that really matter to customers to find the following objectives-
 Customer service and satisfaction (increasing net promoter scores, or

reducing call center waiting times, for example)
 Market share (such as, growing market share in a certain segment or
country)
 Brand awareness (for example, increasing interactions on social media 5
3. Internal Business Process
The company must do internally to meet its customers’ expectations because

customer focus and customer satisfaction in any business is very the importance.
The internal measures for the balanced scorecard should stem from the business
processes that have the greatest impact on customer satisfaction—factors that affect
5
cycle time, quality, employee skills, and productivity to meet customer requirement
and to determine how effectively their business is operating. For example.
Companies should also attempt to identify and measure their company’s core
competencies, the critical technologies needed to ensure continued market
leadership.6 Also internal process objectives might include:
 Process improvements (for example, streamlining an internal approval

process)
 Quality optimization (such as, reducing manufacturing waste)
 Capacity utilization (using technology to boost efficiency, for instance) 7
4. Organization learning and growth
This perspective includes employee training and corporate cultural attitudes related
to both individual and corporate self-improvement. In a knowledge-worker
organization, people are the main resource and in the current climate of rapid
technological change it is becoming necessary for employees to be in a continuous
learning mode. Kaplan and Norton emphasize that “learning” is more than “training”
as it also includes things like; mentors and tutors within the organization, things that
enable effective communication among workers, effective help in problem solving
when it is needed and it also includes technological tools. 8
These objectives are intended to drive improvement in financial, customer,

internal process performance and such improvements came from product and
service innovation that would create new sources of revenue and market expansion,
as well as from continuous improvement in internal work processes. 9
( Word count - 790)
References

competitive advantage approach , concepts and cases, Chapter-11 Strategic
Monitoring
2. https://hbr.org/1993/09/putting-the-balanced-scorecard-to-work , Putting the Balanced
Scorecard to Work, by Robert S. Kaplan and David P. Norton
3. https://www.bernardmarr.com/default.asp?contentID=968 , The Four Perspectives in a
Balanced Scorecard
4. https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2 , The
Balanced Scorecard—Measures that Drive Performance by Robert S. Kaplan and David P.
Norton, 1992 .
6
Balanced Scorecard
6. https://hbr.org/1993/09/putting-the-balanced-scorecard-to-work , Putting the Balanced
Scorecard to Work, by Robert S. Kaplan and David P. Norton
Balanced Scorecard
8. https://www.yourarticlelibrary.com/accounting/performance-measurement/perspectives-
in-balanced-scorecard-4-perspectives/53100
9. https://www.researchgate.net/publication/307872136_Performance_Measurement_using_
Balance_Score_Card_and_its_Applications_A_Review
7
Question No-3 , Mergers, Joint Venture and Acquition

1. Joint venture
A joint venture is a partnership involving the establishment of an independent
corporate entity that is jointly owned and controlled by two or more companies. Since
joint ventures involve setting up a mutually owned business, they tend to be more
durable but also riskier than other arrangements. 1
The benefit of improve communications, networking, to globalize operations, to
minimize risk of companies joint ventures are being used increasingly for achieve
strategic. Joint Venture takes many forms, including outsourcing, information
sharing, joint marketing, and joint research and development. Walmart’s successful
joint venture with Mexico’s Cifra for is to gain substantial presence in that new
country. 2
The following 4 reasons, can not always success joint venter than mergers-
1. Managers who must collaborate daily in operating the venture are not
involved in forming or shaping the venture.
2. The venture may benefit the partnering companies but may not benefit
customers, who then complain about poorer service or criticize the companies
in other ways.
3. The venture may not be supported equally by both partners. If supported
unequally, problems arise.
4. The venture may begin to compete more with one of the partners than the
other.
Recent research reveals that small- and medium-size firms expanding into other
countries should form alliances with non competitors rather than with rival firms.
There are six guidelines for a joint venture-
1. A privately owned organization is forming a joint venture with a publicly owned
organization. There are some advantages to being privately held, such as
closed ownership, being publicly held and that can be synergistically
combined in a joint venture.
2. A domestic organization is forming a joint venture with a foreign company. A
joint venture can provide a domestic company with the opportunity for
obtaining local management in a foreign country by reducing risks
(expropriation and harassment by host country officials )
3. The distinct competencies of two or more firms complement each other
especially well.
4. Some project is potentially profitable but requires overwhelming resources
and risks.
5. Two or more smaller firms have trouble competing with a large firm.
6. There is a need to quickly introduce a new technology. 3
8
2. Mergers and Acquisions

Merger/ acquisition used ways to achieve strategies . A merger occurs when two
organizations of about equal size unite to form one enterprise. An acquisition
occurs when a large organization purchases (acquires) a smaller firm or vice versa.
If a merger or acquisition is not desired by both parties, it is called a hostile takeover,
as opposed to a friendly merger. Most mergers are friendly, but the number of hostile
takeovers is on the rise. Not all mergers are effective and successful. 4
For example, soon after Halliburton acquired Baker Hughes, Halliburton’s
stock price declined 11 percent. So, a merger between two firms can yield great
benefits, but the price and reasoning must be right. The following facts is for
acquisitions are essential - (1) when a market opportunity can slip by faster than a
needed capability can be created internally and (2) when industry conditions,
technology, or competitors are moving at such a rapid clip, that time is of the
essence.5
In the United States, mergers and acquisitions totaled $1.52 trillion in 2014,
comprising 45 percent of global deals, up from $998 billion, or 43 percent, the prior
year. The following 9 reasons “ Why Many Mergers and Acquisitions Fail” -
1. Integration difficulties
2. Inadequate evaluation of target
3. Large or extraordinary debt
4. Inability to achieve synergy
5. Too much diversification
6. Managers overly focused on acquisitions
7. Too large an acquisition
8. Difficult to integrate different organizational cultures
9. Reduced employee morale due to layoffs and relocations
Private equity (PE) firms are acquiring and taking private a wide variety of
companies almost daily in the business world.
 For example-1 , one of the world’s largest private-equity firms, Apollo
Global Management LLC, recently acquired 577 Chuck E. Cheese
stores, the party pizza and arcade game venues, in 47 states and 10
foreign countries or territories.
There are 11 Potential Benefits of Merging with or Acquiring Another Firm-
9
1. To provide improved capacity utilization
2. To make better use of the existing sales force
3. To reduce managerial staff
4. To gain economies of scale
5. To smooth out seasonal trends in sales
6. To gain access to new suppliers, distributors, customers, products, and

creditors
7. To gain new technology
8. To gain market share
9. To enter global markets
10. To gain pricing power
11. To reduce tax obligations
The intent of virtually all PE acquisitions is to buy firms at a low price and sell
them later at a high price, arguably just good business. 6
( Word count - 790)
References

competitive advantage approach , concepts and cases, Chapter-4, Type of
Strategic
3. https://www.coursehero.com/file/39336152/Six-guidelines-for-when-a-joint-
venture-may-be-an-especially-effective-means-for-pursuing-strategies/
Strategic
Strategic
10
Question No-4 , Vision and Mission Statement

1. Vision Statement
Vision Statement should answer the basic question; “ What do we want to
become ?” and sets a defined direction for the planning and execution of corporate-
level strategies. 1
The vision statement should be short, preferably one sentence, and as many
managers as possible should have input into developing the statement. So it can
state the current and future objectives of an organization. This vision statement can
guide to the organization for decision making process with compare of its philosophy
for setting goals and as a roadmap. We can prove that the analysis of the following
success company’s vision-
a) Samsung is dedicated “ To developing innovative technologies and
efficient processes that create new markets, enrich people’s lives and
continue to make Samsung a digital leader “ The company’s mission
statement is called a statement of philosophy and also is given on the
corporate website. Samsung does an excellent job in strategic
management.
b) General Motors’ vision is “ To be the world leader in transportation
products and related services.” 2
2. Mission Statement
The mission statement is a declaration of an organization’s “reason for being.” It
answers the pivotal question “What is our business?” A mission statement is the
foundation for priorities, strategies, plans, and work assignments. It is the starting
point for the design of jobs and organizational structures. A clear mission statement
is a mission statement reveals what an organization wants to be and whom it wants
to serve.
A good mission statement reveals an organization’s customers; products or
services; markets; technology; concern for survival, growth, profitability, philosophy,
self-concept, concern for public image and concern for employees. The best mission
statements are guidelines by which a company operates. Everything you do as a
company should work toward your mission statement. We can see the following
company’s mission statements-
a) PepsiCo’s responsibility is “ To continually improve all aspects of the world
in which we operate—environment, social, economic—creating a better
tomorrow than today.”
11
b) the vision statement of Stokes Eye Clinic in Florence, South Carolina, is
“Our vision is to take care of your vision.” 3
3. Vision and Mission Statement

Vision and mission statements are not just words that look nice when framed
or engraved A company’s values are the beliefs, traits, and behavioral norms that
company personnel are expected to display in conducting the company’s business
and pursuing its strategic vision and mission. 5 There are ten benefits of having a
clear Mission and Vision-
a) Achieve clarity of purpose among all managers and employees.
b) Provide a basis for all other strategic planning activities, including internal and
external assessment, establishing objectives, developing strategies, choosing
among alternative strategies, devising policies, establishing organizational
structure, allocating resources, and evaluating performance.
c) Provide direction.
d) Provide a focal point for all stakeholders of the firm.
e) Resolve divergent views among managers.
f) Promote a sense of shared expectations among all managers and employees.
g) Project a sense of worth and intent to all stakeholders.
h) Project an organized, motivated organization worthy of support.
i) Achieve higher organizational performance.
j) Achieve synergy among all managers and employees.
During the process of developing vision and mission statements, some organizations
use discussion groups of managers to develop and modify existing statements
before alternative strategies can be formulated and implemented. The following utility
statements are relevant in developing a mission statement:
a) To make sure all employees/managers understand the firm’s purpose or
reason for being.
b) To provide a basis for prioritization of key internal and external factors utilized
to formulate feasible strategies.
c) To provide a basis for the allocation of resources.
d) To provide a basis for organizing work, departments, activities, and segments
around a common purpose.
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.
The following facts is to develop Vision and Mission Statement
a) Developing a mission statement compels strategists to think about the nature
and scope of present operations
b) and to assess the potential attractiveness of future markets and activities
c) select several articles about these statements and ask all managers to read
these as background information
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d) ask managers to individually prepare a vision and mission statement for the
organization. A facilitator or committee of top managers should then merge
these statements into a single document and distribute the draft statements to
all managers.
e) A request for modifications, additions, and deletions is needed next, along

with a meeting to revise the document.
Example of Vision and Mission Statement is - Domino’s does not have a stated
vision statement, but the company mission statement is as follows: “Exceptional
franchisees and team members on a mission to be the best pizza delivery company
in the world.” 6
( Word count - 798)
References
1. https://corporatefinanceinstitute.com/resources/knowledge/strategy/vision-
statement/
competitive advantage approach , concepts and cases, Chapter-5, Vision and
Mission Analysis
Mission Analysis
competitive advantage approach , concepts and cases, Chapter-1 , strategic
Management
Mission Analysis
“ I declare that this work is entirely my own with the sources of information I
have used clearly identified and acknowledged.”
13

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Candidate Name - Chit Ko Ko Win

1. Step-1; Identifying organization’s current mission, objectives and

2. Step-2; External Analysis

Step-3; Internal Analysis

Step-6; evaluating Strategies (Using SWOT)

2. Six guidelines for effective strategic management:

Strategic management offer certain financial benefits such as increasing

1. Fred r.David and Forest r.David, Strategic Management( Six Edition-2017 ), A

The Balanced Scorecard is an important strategy-evaluation tool that allows firms to

The financial perspective included three measures of importance to the shareholder,

 Cost savings and efficiencies (for example, a specific goal to reduce

E.g. - A computer manufacturer wanted to be the competitive leader in customer

 Customer service and satisfaction (increasing net promoter scores, or

3. Internal Business Process

The company must do internally to meet its customers’ expectations because

 Process improvements (for example, streamlining an internal approval

4. Organization learning and growth

These objectives are intended to drive improvement in financial, customer,

( Word count - 790)

1. Fred r.David and Forest r.David, Strategic Management( Six Edition-2017 ), A

Question No-3 , Mergers, Joint Venture and Acquition

2. Mergers and Acquisions

6. To gain access to new suppliers, distributors, customers, products, and

( Word count - 790)

1. John E. Gamble,Christi Margaret A. Peteraf , Arthur A. Thompson, Jr. The

Question No-4 , Vision and Mission Statement

3. Vision and Mission Statement

e) A request for modifications, additions, and deletions is needed next, along

( Word count - 798)

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