agm-efr-2007
TRANSCRIPT
E.F.R Group of CompaniesE.F.R Group of CompaniesAnnual General Meeting – 2007Annual General Meeting – 2007
Presented by Logistics Presented by Logistics ( Gold Shipping )( Gold Shipping )
Presentation OutlinesPresentation Outlines
Vision, Mission & Core ValuesVision, Mission & Core Values ObjectivesObjectives StrategiesStrategies
VisionVision
To be the To be the leaderleader in any industry in any industry where our group of companies choose to where our group of companies choose to operate either within Myanmar or operate either within Myanmar or OverseasOverseas
MissionMission
We are anWe are an innovative innovative organization and organization and continuously improvecontinuously improve our process, products and resourcesour process, products and resources
We are We are committedcommitted to meet our customer’s needs including to meet our customer’s needs including reliability, quality, service and efficiency in a manner that anticipates reliability, quality, service and efficiency in a manner that anticipates and and exceeds their expectationexceeds their expectation
We endeavour to provide We endeavour to provide challenging career developmentchallenging career development to to our employees through training, employee involvement and human our employees through training, employee involvement and human resource planningresource planning
We believe in the spirit of co-operation and co-ordination and We believe in the spirit of co-operation and co-ordination and intend to earn the confidence and respect of our member companies intend to earn the confidence and respect of our member companies by providing support, guidance, and share of information and thereby by providing support, guidance, and share of information and thereby survive and prosper togethersurvive and prosper together
Core ValuesCore Values
Honesty and IntegrityHonesty and Integrity
Trust worthinessTrust worthiness
TransparencyTransparency
AccountabilityAccountability
Team workTeam work
Staff DevelopmentStaff Development
HappinessHappiness
ObjectivesObjectives
Financial Objectives Strategic Objectives
Outcomes focused on Outcomes focused on improving improving financialfinancial performanceperformance
Outcomes focused on Outcomes focused on improving improving long-term, long-term, competitivecompetitive business business positionposition
$
To gain 30% market share in 2008
StrategyStrategy
??
The Five TasksThe Five Tasksof Strategic Managementof Strategic Management
Craft aStrategy
to AchieveObjectives
SetObjectives
Develop aStrategic
Visionand
Mission
Implementand
ExecuteStrategy
Improve/Change
Revise asNeeded
Revise asNeeded
Improve/Change
Recycleas Needed
Task 1Task 1 Task 2Task 2 Task 3Task 3 Task 4Task 4 Task 5Task 5
Monitor,Evaluate,and Take
CorrectiveAction
Crafting a StrategyCrafting a Strategy
Strategy involves determining Strategy involves determining whetherwhether toto• Concentrate on a single business or several Concentrate on a single business or several
businesses (diversification)businesses (diversification)• Cater to a broad range of customers or focus on Cater to a broad range of customers or focus on
a particular nichea particular nichePursue a competitive advantage based onPursue a competitive advantage based on
Low cost Low cost oror Differentiation Differentiation oror Unique organizational capabilitiesUnique organizational capabilities
Involves deciding Involves deciding howhow toto• Respond to changing buyer preferencesRespond to changing buyer preferences• Respond to new market conditionsRespond to new market conditions• Grow the business over the long-termGrow the business over the long-term• Achieve performance targetsAchieve performance targets• Outcompete rivalsOutcompete rivals
Crafting a StrategyCrafting a Strategy
The The HowsHows That ThatDefine a Firm's Strategy Define a Firm's Strategy
HowHow to grow the business to grow the business
HowHow to fulfill customers needs to fulfill customers needs
HowHow to outcompete rivals to outcompete rivals
HowHow to respond to changing to respond to changing market conditionsmarket conditions
HowHow to manage each functional unit of the to manage each functional unit of the business and develop needed organizational business and develop needed organizational capabilitiescapabilities
HowHow to achieve strategic and financial objectives to achieve strategic and financial objectives
Why Do Strategies Evolve?Why Do Strategies Evolve? There is There is alwaysalways an ongoing need to react to an ongoing need to react to
• Shifting market conditionsShifting market conditions• Fresh moves of competitorsFresh moves of competitors• New technologiesNew technologies• Evolving customer preferencesEvolving customer preferences• Political and regulatory changesPolitical and regulatory changes• New windows of opportunityNew windows of opportunity
Three Strategy HorizonsThree Strategy Horizonsfor Sustaining Rapid Growthfor Sustaining Rapid Growth
Source: Adapted from Eric D. Beinhocker, “Robust Adaptive Strategies,” Sloan Management Review 40, No. 3 (Spring 1999), p.101.
Portfolio of Strategy Initiatives
• “Short-jump” initiatives to fortify and extend current businesses
• Immediate gains in revenues and profits
Time
• “Medium-jump” initiatives to leverage existing resources and capabilities to pursue growth in new businesses
• Moderate revenue and profit gains now, but foundation laid for sizable gains over next 2-5 years
• “Long-jump” initiatives to sow the seeds for growth in businesses of the future
• Minimal revenue gains now and likely losses, but potential for significant contributions to revenues and profits in 5-10 years
Evaluation on current shipping industryEvaluation on current shipping industry
Slowing demand breeds stiffer competitionSlowing demand breeds stiffer competition More sophisticated buyers demand bargainsMore sophisticated buyers demand bargains Greater emphasis on cost and serviceGreater emphasis on cost and service International competition increasesInternational competition increases Industry profitability fallsIndustry profitability falls Mergers and acquisitions reduce the number of Mergers and acquisitions reduce the number of
industry rivalsindustry rivals
Characteristics of Industry MaturityCharacteristics of Industry Maturity
Strategy Options for CompetingStrategy Options for Competingin a Mature Industryin a Mature Industry
PrunePrune marginal products and models marginal products and models Emphasize Emphasize innovationinnovation in the in the value chainvalue chain Strong focus on Strong focus on cost reductioncost reduction Increase salesIncrease sales to present customersto present customers Purchase rivalsPurchase rivals at bargain prices at bargain prices Expand Expand internationallyinternationally Build new, more Build new, more flexible competitiveflexible competitive capabilitiescapabilities
Understanding a Company’s Strategy Understanding a Company’s Strategy What to Look ForWhat to Look For
Patternof Actions
That DefineStrategy
Actions to strengthen Actions to strengthen resources & resources & capabilitiescapabilities
Actions to diversifyActions to diversify Actions to outcompete rivals
Responses tochanging externalcircumstances
Actions to alter geographic coverage
Actions to form strategic alliances and collaborative
partnerships
How functional activities are managed
Efforts to pursue Efforts to pursue new opportunities or new opportunities or defend against threats defend against threats
Actions to merge or acquire rival companies
When Does DiversificationWhen Does DiversificationStart to Make Sense?Start to Make Sense?
Strong competitive Strong competitive
position, rapid market position, rapid market
growth -- growth -- NotNot a good a good
time to diversifytime to diversify
Strong competitive Strong competitive position, slow market position, slow market
growth -- Diversification growth -- Diversification is is top prioritytop priority considerationconsideration
Weak competitive Weak competitive
position, rapid market position, rapid market
growth -- growth -- NotNot a good a good
time to diversifytime to diversify
Weak competitive Weak competitive position, slow market position, slow market
growth -- Diversification growth -- Diversification merits merits considerationconsideration
When to Diversify?When to Diversify?
Diminishing growthDiminishing growth prospects in present business prospects in present business Opportunities to Opportunities to add valueadd value for customers or for customers or gaingain
competitive advantagecompetitive advantage by broadening present by broadening present business to include complementary productsbusiness to include complementary products
Attractive opportunities to Attractive opportunities to transfertransfer existing existing competenciescompetencies to new businessesto new businesses
Potential Potential cost-saving opportunitiescost-saving opportunities to be realized by to be realized by entering related businessesentering related businesses
AvailabilityAvailability of adequate financial and organizational of adequate financial and organizational resourcesresources
Actions to diversifyActions to diversify
Diversify into Related BusinessesBuild shareholder value by capturing cross-business strategic fitsTransfer skills and capabilities from one business to anotherShare facilities or resources to reduce costsLeverage use of a common brand nameCombine resources to create new competitive strengths and capabilities
Actions to strengthenActions to strengthenresources & capabilitiesresources & capabilities
Intellectual CapitalCareer development to our employees through training, employee involvement and human resource planning
Providing supports, guidance and share of information and thereby survive and prosper together
The Five TasksThe Five Tasksof Strategic Managementof Strategic Management
Craft aStrategy
to AchieveObjectives
SetObjectives
Develop aStrategic
Visionand
Mission
Implementand
ExecuteStrategy
Improve/Change
Revise asNeeded
Revise asNeeded
Improve/Change
Recycleas Needed
Task 1 Task 2 Task 3 Task 4 Task 5
Monitor,Evaluate,and Take
CorrectiveAction
Implement & executive strategyImplement & executive strategy
PDCA ( Plan, do, check, act )PDCA ( Plan, do, check, act ) TQMTQM Balanced scorecard Balanced scorecard BenchmarkingBenchmarking BPR ( Business Process Re-engineering )BPR ( Business Process Re-engineering ) Learning OrganizationLearning Organization
Monitor, evaluate & corrective actionMonitor, evaluate & corrective action
Thank YouThank You