STRATEGIC MANAGEMENT MODEL

Strategy evaluation

Develop vision and mission statement

Perform external audit

Perform internal audit

Establish long-term objectives

Generate evaluate and select strategies

Implement strategies management –issues

Implement strategies marketing, finance, accounting, R & D, MIS

Measure and evaluate performance

Strategy formulation Strategy implementation

Fred R. David

The Strategic Management Process

Ireland. Hoskisson. Hitt.

The Business

Vision

THE BUSINESS VISION

Vision is a picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve.(Hitt, Ireland, Hoskisson)

A vision statement articulates the ideal description of an organization and gives shape to its intended future. In other words, a vision statement points the firm in the direction of where it would like to be in the years to come.

THE BUSINESS VISION

Vision is the art of seeing things invisible.(Jonathan Swift)

A vision describe aspirations for the future, without specifying the means necessary to achieve those desired

ends.(Tregoe, 1990)

THE BUSINESS VISION

A vision is a form of nonspecific guidance normally provided to an organization by its CEO.

It describes where the company is going, in the most general, conceptual term, but it must also provide emotional direction.(Tichy and De Vanna)

THE BUSINESS VISION

Vision must be inspiring to be effective: they also must be clear and challenging.

Most visions of business leaders and business organizations are aimed to develop the ability to compete in the marketplace. The vision lead to the statement of mission.(Peters)

THE BUSINESS VISION

A vision statement should answer the basic question,

“What do we want to become?”.

A clear vision provides the foundation for developing a comprehensive mission statement.

(Fred R. David)

Copyright 2007 Prentice Hall Ch 2 -9

“What do we want to become?”

Vision

THE BUSINESS VISION

Visions must be communicated, often, to very large numbers of people.

Communication a vision takes place in two ways:

1. Through mission statement

2. Through persuasive leadership

Copyright 2007 Prentice Hall Ch 2 -11

ComprehensiveMission Statement

Vision

Clear Business Vision

THE BUSINESS VISION

Visi perusahaan dapat memfokuskan, mengarahkan,memotivasi, mempersatukan, dan bahkan merangsang bisnis untuk mencapai kinerja yang unggul. Tugas penyusun strategi adalah mengidentifikasi dan memproyeksikan sebuah visi yang jelas.

(John Keane)

CONTOH VISI

Tyson Food: Menjadi pilihan pertama di dunia untuk solusi protein disamping memaksimalkan nilai pemegang saham.(bagus)

General Motor: Menjadi pemimpin dunia dalam produk transportasi dan jasa yang terkait dengannya. (bagus)

Dell: Menciptakan suatu budaya perusahaan di mana kelestarian lingkungan menjadi hakikat ke dua. (tidak jelas)

CONTOH VISI

Universitas Airlangga: Menjadi universitas yang mandiri, inovatif, terkemuka di tingkat nasional dan internasional, pelopor pengembanganh ilmu pengetahuan, teknologi, dan humaniora berdasarka moral agama.

Fakultas Ekonomi dan Bisnis Unair: Menjadi fakultas ekonomi dan bisnis berkelas dunia, inovatif dan mandiri berdasarkan moral agama.

The Business

Mission

THE BUSINESS MISSION

A business organization’s mission is viewed as the broadly stated definition of basic business scope and operations that distinguishes it from other organizations of a similar type.( Pearce II )

THE BUSINESS MISSION

Drucker says that asking the question,

“What is our business ?”

is synonymous with asking the question,

“What is our mission?”.

Copyright 2007 Prentice Hall Ch 2 -18

“What is our business?”

Mission Statements

THE BUSINESS MISSION

The mission statement is the declaration of an organization’s “reason for being.”

The company mission is a broadly framed but enduring statement of a firm’s intent.

THE BUSINESS MISSION

A mission specifies the business or businessesin which the firm intends to compete and the customers it intends to serve.

The firm’s mission is more concrete than its vision.

A mission should establish a firm’s individuality and should be inspiring and relevant to all stakeholders.

(Hitt, Ireland, Hoskisson)

THE BUSINESS MISSION

A clear mission statement is essential for effectively establishing objectives and formulating strategies.

An organization can define its mission in term of its products or services, the market or customers.

FORMULATING A MISSION

Involve as many managers as possible in the process of developing a mission statement, because through involvement, people become committed to an organization.

During the process of developing a mission statement, some organization use discussion groups of managers to develop and modify the mission statement.

FORMULATING A MISSION

The process of defining the company mission for a specific business can perhaps be best understood by thinking about the business at its inception.

As the business grows or is forced by competitive pressures to alter its product-market-technology, redefining the company mission my be necessary. (Pearce II & Robinson)

IMPORTANCE OF VISION AND MISSION STATEMENT

William R. King and David L. Cleland:

1. To ensure unanimity of purpose within the organization

2. To provide a basis or standard for allocating organization’s resources

3. To establish a general tone or organizational climate.

4. To serve as a vocal point for individuals to identify with the organization purpose and direction, and to deter those who cannot participating further in the organization’s activities

IMPORTANCE OF VISION AND MISSION STATEMENT

William R. King and David L. Cleland:

5. To facilitate the translation of objectives into a work structure involving the assignment of tasks to responsible elements within the organization.

6. To specify organizational purpose and then to translate these purposes into objectives in such a way that cost, time, and performance parameters can be assessed and controlled.

COMPONENT OF A MISSION STATEMENT

Customer

Products or services

Geographically

Technology

Concern for survival

Philosophy

Self-concept

Concern for public image

Concern for employees

Pernyataan misi yang baik menunjukkan adanya perhatian relatif bahwa suatu organisasi akan mengerahkan usahanya untuk memenuhi tuntutan sebagai pemangku kepentingan.

Pernyataan misi yang jelas menjadi dasar bagi penciptaan dan

pemilahan opsi strategis.

Setiap organisasi memiliki maksud dan tujuan yang unik. Keunikan tersebut harus tercermin dalam Visi dan Misi.

Pernyataan visi dan misi yang dirancang dengan baik, sangat penting untuk merumuskan, menerapkan, dan mengevaluasi strategi.

Organization

Philosophy and

Policy

ORGANIZATION PHILOSOPHY

An organization philosophy represents the values, believes, commitments, and aspirations of the company.

The philosophy serves as a guide for the behavior of its employees as well as how the organization conduct its business. It reflects the culture of the enterprise.

ORGANIZATION PHILOSOPHY

An organization philosophy set fort the values and beliefs of the organization that guide the behavior of its members in all aspects of business activities.

ORGANIZATION POLICY

The term policy refers to specific guidelines, methods, procedures, rules, forms, and administrative practices that are established to support and encourage work toward stated goals.

ORGANIZATION POLICY

Policy can be viewed as instruments for strategy implementation

Policies set boundaries, constraints, and limitation that can be taken to reward and sanction behavior.

ORGANIZATION POLICY

Policies clarify what can and can not be done in pursuit of an organization’s goal and objective.