2.
Understanding The Business Environment and Organization Base Strategies Formulating The Strategies
Generic Environment Analysis Applied Strategies Analysis Etc
3.
4. 5. 6.
Implementing and Cascading Scorecard Initiative and Budget Planning Challenges and Solution
Stone Age
Agriculture Age
Industrial Age
Informatio n Age
Conceptual Age
1980
Ran k
1 2 3 4 5 6 7 8 9 10
2011
Company
Revenu es
($ millions)
Profits
($ millions)
Ran k
1 2 3 4 5
Company
Revenu es
($ millions)
Profits
($ millions)
Exxon Mobil General Motors Mobil Ford Motor Texaco Chevron Texaco Gulf Oil Intl. Business Machines General Electric Amoco
79,106.5 66,311.2 44,720.9 43,513.7 38,350.4 29,947.6 23,910.0 22,862.8 22,460.6 18,610.3
Wal-Mart Stores Exxon Mobil Chevron Conoco Phillips Fannie Mae General Electric Berkshire Hathawat General Motors Bank of America Corp. Ford Motor
421,849.0 354,674.0 196,337.0 184,966.0 153,825.0 151,628.0 136,185.0 135,592.0 134,194.0 128,954.0
16,389.0 30,460.0 19,024.0 11,358.0 - 14,014.0 11,644.0 12,967.0 6,172.0 - 2,238.0 6,561.0
Mission is the why a basis/basic reason company/organization is established. Mission statement is the short/simple statement that should influence every activities in that company.
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Example:
Company
Nike Starbucks
Mission Statement
To bring inspiration and innovation to every athlete in the World. To inspire and nurture the human spirit one person, one cup and one neighborhood at a time. To make people happy.
Disney
Vision is a where the future outlook company/organization want to be. Through vision, a company/organization can set the strategies to achieve results that can fulfill the vision.
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Example:
Company
Unilever
Vision Statement
Unilever products touch the lives of over 2 billion people every day whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack. 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.
PepsiCo
"Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization long-term: through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations. Johnson and Scholes.
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Where is the business trying to get to in the long-term? (direction) direction) direction Which markets should a business compete in and what kind of activities are involved in such markets? (markets scope markets; markets scope) How can the business perform better than the competition in those markets? (advantage advantage) advantage What resources (skills, assets, finance, relationships, technical competence, facilities) are required in order to be able to compete? (resources resources) resources What external, environmental factors affect the businesses' ability to compete? (environment environment) environment What are the values and expectations of those who have power in and around the business? (stakeholders) stakeholders) stakeholders
There several strategic tools that common used to determine the company positioning as well as gain the competitive advantages in the market, such as:
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PESTEL Analysis; SWOT Analysis; Porter Five Forces Analysis; BCG Growth-Share Matrix; GE Industry Matrix; Ansoff Matrix; And many more.
PESTEL Analysis is a framework of macro-environmental factors used for understanding market growth or decline, business position, potential and direction for operations.
Discrimination law Consumer law Antitrust law Employment law Health and safety law Tax policy Labor laws Environmental regulations Trade restrictions and tariffs Political stability
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PESTEL Analysis
Business Analysis
Health consciousness Population growth rate Age distribution Career attitudes Emphasis on safety
SWOT Analysis is a framework that used for identifying the current situation - position as well as internal - external factors in order to achieve company/organization objectives.
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SWOT Analysis
Porter Five Forces Analysis is a line-of-business industry framework to make a qualitative evaluation of Threat of organization/companys strategic position.
New Entrants
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Industry Rivalry