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    Management Accounting Business Strategy

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    Strategic Planning Model

    Reassess anddevelop the

    Organizationsmission andobjectives

    Reassess anddevelop the

    Organizationsmission andobjectives

    Formulatestrategies

    Formulatestrategies

    Implementstrategies

    Implementstrategies

    Evaluateresults

    Evaluateresults

    Analyzethe

    environment

    Analyzethe

    environment

    IdentifyOpportunities

    Andthreats

    IdentifyOpportunities

    Andthreats

    Analyzethe

    Organizationsresources

    Analyzethe

    Organizationsresources

    IdentifyStrengths

    andweaknesses

    IdentifyStrengths

    andweaknesses

    Identify theOrganizationsCurrent vision

    mission,Objectives, and

    Strategies

    Identify theOrganizationsCurrent vision

    mission,Objectives, and

    Strategies

    What is Strategy ?

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    Strategic Planning Model

    What dowe Want to

    Become ?

    Intellectual thoughts aboutfuture Vision

    General Motors vision is to be the world leader in transportation productsand related service

    Reassess anddevelop the Organizations

    mission and objectives

    Reassess anddevelop the Organizations

    mission and objectives

    Formulatestrategies

    Formulatestrategies

    Implementstrategies

    Implementstrategies

    Evaluateresults

    Evaluateresults

    Analyzethe

    environment

    Analyzethe

    environment

    IdentifyOpportunities

    Andthreats

    IdentifyOpportunities

    Andthreats

    Analyzethe

    Organizationsresources

    Analyzethe

    Organizationsresources

    IdentifyStrengths

    andweaknesses

    IdentifyStrengths

    andweaknesses

    Identify the OrganizationsCurrent vision mission,

    Objectives, and Strategies

    Identify the OrganizationsCurrent vision mission,

    Objectives, and Strategies

    Vision

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    Strategic Planning Model

    What dowe Want to

    Become ?

    Intellectual thoughts aboutfuture

    Vision

    General Motors vision is to be

    the world leader intransportation products and

    related service

    Vision

    It is the wish to become leader in

    some fieldWhere theorganizationaspires to be

    in future?

    One the

    organizationstrives to achieve

    in long term

    It is wish to contribute to somemajor cause

    General Motors vision is to be the world leader in

    transportation products and related service

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    Strategic Planning Model

    Vision

    Vision

    Dells vision is to create a company culture where environmentalexcellence is second nature

    HowHow thethe organizationorganization wantswants toto bebe perceivedperceivedinin thethe futurefuture whatwhat successsuccess lookslooks likelike

    AnAn expressionexpression ofof thethe desireddesired endend statestate

    ChallengesChallenges everyoneeveryone toto reachreach forfor somethingsomethingsignificantsignificant inspiresinspires aa compellingcompelling futurefuture

    ProvidesProvides aa longlong--termterm focusfocus forfor thethe entireentireorganizationorganization

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    Strategic Planning ModelComponents of Vision

    Core ideology Core Values - timeless guiding principles

    Core Purpose - reason for being

    Envisioned future Big Hairy Audacious Goals (BHAG) -clearly articulated goals

    Vivid description - a graphic description of whatsuccess and the future will be like

    Recognition of service to stakeholders Owners/creditors

    Employees

    Customers

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    Strategic Planning ModelVision Descriptors

    Adept

    Aggressive

    Agile

    Aligned

    Assertive

    Available

    Best-in-class

    Challenging

    Clear

    Competent

    Complex

    Compliant Conservative

    Coordinated

    Critical

    Direct

    Disciplined

    Effective

    Efficient

    Enduring

    Expanding

    Expert

    Fast

    Fast-paced

    Financially-sound

    Focused

    Growth Healthy

    Improving

    Incentivized

    Equal

    Increasing

    Solid

    Solvent

    Stable

    State of the Art

    Strong

    Streamlined

    Sufficient

    Strategic

    Sustainable

    Timely

    V

    alue-added Vigilant

    Visionary

    World-class

    Informative

    Innovative

    Leading

    Logical

    Major

    Nimble

    Pioneering

    Protected

    Organized

    Over-Arching

    Quick Ready

    Responsive

    Savvy

    Simple

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    Strategic Planning ModelVision

    Tysons vision is to be the worlds first choice for protein solutionswhile maximizing shareholder value (Good statement, unless Tysonprovides non protein products)

    General Motors vision is to be the world leader in transportationproducts and related service (Good statement)

    Pepsi Cos responsibility is to continually improve all aspects of theworld in which we operate- environment, social, economic creating abetter tomorrow than today (Too vague, it should reveal beverage andfast food)

    Samsonites vision is to provide innovative solutions for the travellingworld (Need to be more specific, may relate with product benefits)

    ICMAPs vision is to be the preference in value optimism for thebusiness (__________________)

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    Strategic Planning ModelImportance of Vision

    Shared Vision --

    Creates commonality of interests

    Reduce daily monotony Provides opportunity & challenge

    Profit & vision are necessary to effectivelymotivate a workforce

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    Strategic Planning Model

    What is ourBusiness ?

    Reason for existence Mission

    FedEx is committed to our people Service Profit Philosophy. We willproduce outstanding financial returns by providing totally reliable,competitively superior, global, air-ground transportation of high-prioritygoods and documents that require rapid, time-certain delivery

    Reassess anddevelop the Organizations

    mission and objectives

    Reassess anddevelop the Organizations

    mission and objectives

    FormulatestrategiesFormulatestrategies

    ImplementstrategiesImplementstrategies

    Evaluateresults

    Evaluateresults

    Analyze

    theenvironment

    Analyze

    theenvironment

    IdentifyOpportunities

    Andthreats

    IdentifyOpportunities

    Andthreats

    Analyzethe

    Organizationsresources

    Analyzethe

    Organizationsresources

    IdentifyStrengths

    andweaknesses

    IdentifyStrengths

    andweaknesses

    Identify the OrganizationsCurrent vision mission,

    Objectives, and Strategies

    Identify the OrganizationsCurrent vision mission,

    Objectives, and Strategies

    Mission

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    Strategic Planning Model

    What is ourBusiness ?

    Statement for purpose thatdistinguishes one organizationfrom other similar organization

    MissionCreed statement, statement ofpurpose, statement of beliefs,

    statement of philosophy

    Mission

    What is ourmission ?

    Reason for your

    existence

    Basis for establishing objectives

    and formulation of policies

    FedEx is committed to our people Service Profit Philosophy. We will produce outstandingfinancial returns by providing totally reliable, competitively superior, global, air-groundtransportation of high-priority goods and documents that require rapid, time-certain delivery

    Reveals wh

    om organizationwants to serve

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    Strategic Planning Model

    Mission

    Mission

    CapturesCaptures thethe essenceessence ofof whywhy thethe organizationorganizationexistsexists WhoWho wewe are,are, whatwhat wewe dodo ExplainsExplains thethe basicbasic needsneeds thatthat youyou fulfillfulfill ExpressesExpresses thethe corecore valuesvalues ofof thethe organizationorganization

    ShouldShould bebe briefbrief andand toto thethe pointpoint EasyEasy toto understandunderstand IfIf possible,possible, trytry toto conveyconvey thethe uniqueunique naturenature ofofyouryour organizationorganization andand thethe rolerole itit playsplays thatthatdifferentiatesdifferentiates

    itit fromfrom othersothers

    FedEx is committed to our people Service Profit Philosophy. We will produce outstandingfinancial returns by providing totally reliable, competitively superior, global, air-groundtransportation of high-priority goods and documents that require rapid, time-certain delivery

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    Strategic Planning ModelMission Statement Components

    Customers - who are the firms customers

    Products or services what are the firms' major products or services

    Markets Geographically where does the firm goes?

    Technology is the firm technologically current?

    Concern for survival, growth, and profitability - is the firm committedto growth and financial soundness

    Philosophy what the beliefs, values, aspiration, and ethicalpriorities of the firm

    Self concept what is the firms distinctive competence or majorcompetitive advantage

    Concern for public image is the firm responsive to social,community, and environmental concerns?

    Concern for employees are employees a valueable asset for thefirm

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    Strategic Planning ModelMission Statement Components

    MissionElements

    Customers Markets

    Employees

    PublicImage

    Self-Concept Philosophy

    SurvivalGrowthProfit

    ProductsServices

    Technology

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    Strategic Planning ModelCharacteristic of mission statement

    Broad in scope

    Les than 250 word

    Inspiring

    Utility of firms products

    CSR

    Environment

    Reconciliatory

    Enduring

    Include nine components

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    Strategic Planning ModelCharacteristic of mission statement

    Declaration oforganizational attitude

    Feasiblealternatives

    Motivationalguidelines

    length Future outlook

    Stakeholders

    Customer Orientation

    Social policy

    Anticipation of customers

    Customers

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    Strategic Planning ModelMission

    Pepsi : We aspire to make PepsiCo the worlds (3) premier productcompany, focused on convenient food and beverages (2). We seek toproduce healthy financial rewards for investor (5) as we provideopportunities for growth and enrichment to our employees (9), ourbusiness partners and communities (8) in which we operate. And in

    everyth

    ing we do, we strive to act with h

    onesty, openness, fairness andintegrity (6) (customers. Technology, self concept is missin)

    Ben & Jerrys mission is to make, distribute and sell the finest qualityall-natural ice cream and related products in a wide variety ofinnovative flavors made from Vermont dairy products. To operate the

    Company on a sound financial basis of profitable growth, increasingvalue for our shareholders, and creating career opportunities andfinancial rewards for our employees. To operate the Company in a waythat actively recognizes the central role that business plays in thestructure of society by initiating innovative ways to improve the qualityof life of a broad communitylocal, national and international.

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    Strategic Planning ModelGood and Bad - Mission

    To Make People Happy

    To Explore the Universe

    and Search for Life

    and to Inspire the

    Next Generation ofExplorers

    NASA

    Walt Disney

    Does a good job of expressing the core values

    of the organization. Also conveys uniquequalities about the organization.

    Too vague and and unclear. Need more

    descriptive information about what makes the

    organization special.

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    Strategic Planning ModelGood and Bad - Mission

    COMPONENTS

    Organization Customers ProductsServices Markets

    Concern for

    Survival,

    Growth,Profitability Technology

    PepsiCo Yes No No Yes No

    Ben & Jerry's No Yes Yes Yes No

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    Strategic Planning ModelGood and Bad - Mission

    COMPONENTS

    Organization PhilosophySelf-

    ConceptConcern forPublic Image

    Concern forEmployees

    PepsiCo Yes No No No

    Ben & Jerry's No Yes Yes Yes

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    Strategic Planning ModelImportance of mission

    Mission

    Resource Allocation

    Unanimity of Purpose

    Organizational Climate

    Focal point for workstructure

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    Strategic Planning ModelProcess of developing vision and mission statements

    Involvement of managers

    Read literature

    Develop statements throughdifferent individuals

    Develop single statement

    Discuses , modify and finalize

    Communicate

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    Strategic Planning ModelVision vs Mission

    What do we Want to Become ?What is our Business ?

    Ultimate destination Means to destination

    The vision is more broadand future oriented

    the goal on the horizon

    The mission is more focused h

    ow you will get to th

    eh

    orizon

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    Strategic Planning ModelBenefits of having clear mission and vision statement

    Clarity of purpose

    Base of all sp activities

    Direction

    Focal point

    Divergent views

    Sense of share expectations

    Send of work Promote motivated organization

    Organizational performance

    Synergy

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    Strategic Planning ModelImportance (benefits) of vision and mission statement

    Unanimity of propose

    Standard

    Organizational climate

    Focal point for individuals

    Translation of objectives

    Translation of organizational purpose and objectives

    2x average return on shareholders equity

    Positive relationship to company performance

    30% high return on certain financial measures

    Research results are mixed, however, firmswith formal statements --

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    Questions ?

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    Thank You