Presentation on Strategic Management & company mission

By Vaibhav kumar Ashish bharti Brajendra kumar

Strategic Management
Strategic management is the set of decisions and action that result in formulation and implementation of plans designed to achieve companys objective and goals and sustain competitive advantage

Task involved in strategic management

Strategic management involves planning , directing ,organizing and controlling of a companys strategic-related decision and action Strategy Formulation process include Composing Mission Objectives , philosophy , goal and developing long-range plans by assessing external environment resources available and opportunities effectively.

Dimensions of strategic decisions

Strategic issues require top mgt. decision It require decision on resources allocation Strategic decision affect the firms long term prosperity Strategic issues are future oriented Strategic issues have multifunctional or multi business consequences Strategic issues require to consider external environment

Three levels of strategy in organization

CEO

Product manager

Head of functional areas

Benefits of strategic management

It connect all levels of managers with the companys objective be it financials or non financials in planning and its implementation The involvement of employees in strategy formulation improve their understanding of productivity-reward relationship which improve the level of motivation

Risk of strategic management

Managers must guards against three types of unintended negative consequences: The time that managers spend on strategic management process Un involvement in the implementation of the strategy Strategic managers must be trained to anticipate and to respond to the disappointment of participating subordinate over unattained expectations

Strategic management process

Process used to formulate and direct their strategic management activities
Changes from company to company Very formal and structured in big companies and corporate houses Lil bit informal and show more of basic planning concerns rather then complex strategic management systems

However, despite differences basic components of model used to analyze strategic managemrnt operations are similar.

Component of Strategic Management Model

Company mission: unique purpose that sets a company apart from others of its type and identifies the scope of its operations Internal analysis
Analyzes quantity and quality of companys financial, human and physical resources Assesses strengths and weaknesses of company

External environment
Consists of all conditions and forces that affect its strategic options and define its competitive situation

 Strategic Analysis and choice

Analyzing internal situation and external environment, range of possible set of opportunities are identified Identified opportunities should be inline with companys mission

Long-Term objectives
Results that an organization seeks to achieve over a multiyear period Involves productivity, profitability, market share, technological advancement, employee relations etc

 Generic and Grand Strategies

Fundamental options for design of strategies which all companies follow Low cost, differentiation, and focus strategy are three ways to achieve it

Short-Term Objectives
Desired results company seeks over a period of one year or less Logically consistent with firms long-term objectives These are just objectives not the way any work is done e.g. employee turnover, raw material usage etc.

 Functional tactics
Specific actions that need to be taken to to achieve the short term objectives, usually by different functional areas Radio ad campaign, inventory reduction, introductory loan rate are some of the examples

Policies That Empower Action

Predetermined decisions that substitute for managerial discretion in repetitive decision making All future decisions in functional areas follow the policies to speed up the process and remove discretion Increase managerial effectiveness by standardizing routine decisions

 Restructuring, Reengineering and Refocusing the Organization

A way to recast organization and look inside organization so that companys mission and any strategy made could be fulfilled GM example: improved operations to accomplish strategy of low cost, increased efficiency and improved designs

Strategic control and continuous improvement

Tracking a strategy as it is being implemented, detecting problems or changesin its underlying premises and making necessary adjustments A form of strategic control to improve all operations in the firm

Strategic management as a process

Company Mission
It is the unique purpose that sets a company apart from others of its type and identifies the scope of its operation. The mission statement is a message designed to be inclusive of the expectations of all stakeholders for the companys performance over the long run.

Formulating a Mission
In general a business begins with the beliefs, desires and aspirations of a single entrepreneur. benefit of Product/Service Price Product/Service satisfy customer need Technology used Cost + Quality Sustainable + Profitable + Growth Good public image

Company Philosophy
It appears within mission statement It specifies beliefs, values, aspirations and philosophical priorities to which strategic decision makers are committed in managing the company.

Public Image

Mission statements should reflect the publics expectations, because this makes achievement of the firms goals more likely.

Company Self Concept

The firm must know itself i.e. the firm realistically must evaluate its competitive strengths and weaknesses. Firms success is the extent to which the firm can relate functionally to its external environment.

Newest Trend in Mission Components

Customers
Majority of companies in Us and India too have became customer centric customer is our priority is a slogan that they claim Xerox allows 40 % annual bonus if customer reviews are good and impose a penalty of 20% on bad feedback by the customer RCA, Sears, 3M maintain extensive product safety programs to ensure customer satisfaction

 Quality
With time quality has become one of the most important factor which any organization ensure and keep in mind while creating mission statement Motorolas production goal is 60 or fewer defects per every billion components that it manufactures Mumbais dabbawala also maintain above six sigma in their delivery service

 Vision statement
A statement that presents a firms strategic intent designed to focus the energies and resources of the company on achieving a desirable future

HMT mission statement: To be a leading Global Engineering conglomerate focused on customer delight in our field of endeavor