ASSIGNMENT 1

BSB705- Strategic and Risk Management

Prof. Md Najib Ibrahim

Session 2
2014/2015

NAME: Nur Syahida Binti Mohd Arif (2014216598)

Title:
Strategic Planning
References:
David, Fred R and David, Forest R (2015). Strategic Management: Concept and
Cases A Competitive Advantage Approach. 15th Edition. Pearson, Singapore
Questions:
1) What is strategic management?
It can be defined as the art and science of formulating, implementing, and
evaluating cross-functional decisions that enable an organization to achieve
its objectives.
2) Compare strategic management with strategic planning
The term strategic management in this text is used synonymously with the
term strategic planning. The latter term is more often used in the business
world, whereas the former is used in academia.
3) What are the three phases in strategic planning?
I.

Strategy formulation
Developing a vision and mission, identifying an organizations external
opportunities and threats, determining internal strength and weakness,
establishing long-term objectives generating alternatives strategies, and
choosing particular strategies to pursue. Strategy-formulation issues
include deciding what new business to enter, what business to abandon,
how to allocate resources, whether to expand operations or diversify,
whether to enter national markets, whether to merge or form a joint
venture, and how to avoid a hostile takeover.

II.

Strategy implementation (action stage)

Requires a firm to establish annual objectives, devise policies, motivate
employees, and allocate resources so that formulated strategies can be
executed. Strategy implementation includes developing a strategyProfMdNajib
2-Mar-15

supportive culture, creating an effective organizational structure,

redirecting marketing efforts, preparing budgets, or developing and
utilizing information systems, and linking employee compensation to
organizational performance.
Interpersonal skills are especially critical for successful strategy
implementation. Strategy implementation activities affect all employees
and manager inn an organization. Every division and department must
decide on answer to question such as What must we do to implement our
part of the organizations strategy? and How best can we get the job
done?
III.

Strategy evaluation
Manager needs to know when particular strategies are not working well;
strategy evaluation is the primary means for obtaining this information.
Three fundamentals strategy-evaluation activities are:
Reviewing external and internal factors that are the bases for
current strategies
Measuring performances
Taking corrective actions

4) What are the benefits of strategic planning?

Enhanced communication
Deeper/ Improved understanding
Greater Commitment
The result: All manager and employees on a mission to help firm
succeed.
5) What is strategy?
Strategy is a plan of action attempting to achieve organizations goal. It is
specifically involved company vision, mission, developing plan to execute
company vision and allocating resources to achieve it.
6) What is mission to a firm as an organization?
According to bussinessdictionary, a mission is defined as properly crafted
mission statements (1) serve as filters to separate what is important from
what is not, (2) clearly state which markets will be served and how, and (3)
communicate a sense of intended direction to the entire organization. A
mission is different from a vision in that the former is the cause and the latter
is the effect; a mission is something to be accomplished whereas a vision is

ProfMdNajib
2-Mar-15

something to be pursued for that accomplishment. Also called company

mission, corporate mission, or corporate purpose.
In conclusion, a mission statement towards a firm or organization is like a
guidance where the company is leading towards to. It leads to a path where
the company aim are meant to be in the future and the strategies it will take
towards achieving its goal.
7) What is objective to a firm as an organisation?
It can be serve as the purpose of the organization, including their mission,
vision and goals that had been agreed by the top management at the initial
set up of the organization. This objective then is communicated to the
organization employees. It involved the company long term in the market as
well as business philosophy.
8) Draw a flow-chart of strategic planning model to indicate key activities in
strategic planning

Source: Fred R. David, How Companies Define Their mission, Long Range Planning 22, no.3 (June 1988):40

ProfMdNajib
2-Mar-15

9) What are the major activities involved in strategy evaluation?

The final stage in strategic management is strategy evaluation and control. All
strategies are subject to future modification because internal and external
factors are constantly changing. In the strategy evaluation and control
process managers determine whether the chosen strategy is achieving the
organization's objectives. The basic activities involved in strategic evaluation
are:
a) Examine the underlying bases of a firms strategy
b) Compare expected to actual results
c) Identify corrective actions to ensure that performance conforms to plans
10)Edward Deming statement in God we trust. All others bring data, suggests
the role of gharar (uncertainty) in strategic planning. Compare the approach
taken by Muslim and Non-Muslim in handling gharar
Tawakal and istikharah
11) What is competitive advantage?
A competitive advantage is an advantage over competitors gained by
offering consumers greater value, either by means of lower prices or by
providing greater benefits and service that justifies higher prices.
Porter suggested four "generic" business strategies that could be adopted in
order to gain competitive advantage. The strategies relate to the extent to
which the scope of a business' activities are narrow versus broad and the
extent to which a business seeks to differentiate its products.
12)How to sustain competitive advantage?
Cost Leadership is a method where companies sell it product and service at
a much lower price than its competitors. It enables a low cost company to
achieve higher profit in return. Although its advantage for some companies,
but other might not going to achieve it since it require a greater initial
investment to achieve economic sales. For example Airasia have been widely
known for its tagline as a low cost courier service, but in comparison to
Malindo airline, the return of investment are more favorable towards the
former.

ProfMdNajib
2-Mar-15

Differentiation is a strategically approach where the company benefits from

its competitors by their unique product design and approach. As a result the
company can gain more profit by charging their product and service at a
premium price such as Apple.
Focus is a strategy in which a company seek an advantage in a niche market
by focusing on a specific market and specific consumer to gain their profit. As
a result of developing and promoting niche products and services,
companies can attract a higher share of customers in that market segment
than competitors.
13)List the different type of organizational structure
1. Function
Departments are set up in an organization according to the function being
carried out. E.g. manufacturing, finance, marketing, etc. This is the most
common form of departmentation.
2. Process
People and jobs are grouped together which are needed to implement a
certain process. E.g. departments organized around machines or data
processing equipment
3. Location
Segregation by territories, regions, districts or countries. Where location
makes a difference, a rationale exists for departmentalization on this
basis.
4. Product or service
The grouping of jobs and activities that are associated with a specific
product. GM is a prime example with its different divisions.
5. Client
Activities and positions are grouped together in a way that is compatible
with the unique needs of specific clients.

ProfMdNajib
2-Mar-15

14)Draw the organizational chart of your organization. State the name of the
organization, nature of business and indicate your position in the chart
Dreka design Sdn. Bhd
Dreka design Sdn Bhd is a built and Design Company that specialized in
residential, commercial and event design. Its co-founded by Nur Syahida Mohd
Arif (author), Nurul Nadia Bt Rosli and Siti Saleha.
CEO

Design Team

Project
Management Team

Design Director

Project manager

Senior Project Designer

Project Designer

Plan maker

3D designer

Project coordination

Business &
Marketing

HR

Quantity Surveyor

Site supervisor

Material &
research

Event
designer

Reference
1) Dess, Gregory G., G.T. Lumpkin and Marilyn L. Taylor. Strategic
Management. 2 ed. 2005. New York: McGraw-Hill Irwin
2) BussinessDictionary.com, mission statement, viewed on 8 th March 2015,
http://www.businessdictionary.com/definition/mission-statement.html
3) Islamicfinance.com,What is gharar, viewed on 8th March 2015,
http://www.islamic-finance.com/item160_f.htm
4) Your Article Library 2015, 8 Types of Organisational Structures: their
Advantages and Disadvantages, viewed on 8th March 2015,

ProfMdNajib
2-Mar-15

http://www.yourarticlelibrary.com/organization/8-types-of-organisationalstructures-their-advantages-and-disadvantages/22143/
Due Date:
Mar 9, 2015

ProfMdNajib
2-Mar-15