Formulating Objective and Strategies Modul 5.

Transcript:Formulating Objective and Strategies Modul 5.:
Formulating Objective and Strategies Modul 5. Strategic Management Model 2 Develop Vision & Mission Statement Establish Long-term Objective Generate, Evaluate, Choose Strategies Implement Strategies Mgt’ Issues Implement Strategies Mkt, Fin, R&D, Prod/Op, MIS Measure, Evaluate Performance Perform External Audit Perform Internal Audit Strategy Formulation Strategy Implementation Strategy Evaluation “notable quotes” Alice said, “would you please tell me which way to go from here?” The cat said, “that depends on where you want to get to” Lewis Carrol Start from the end 3 What is Long-Term Objective ? Long-term objective, represent the results expected from pursuing certain strategies Strategies, represent the actions to be taken to accomplish long-term objectives Time frame for objective & strategies should be consistent 2 – 5 years. Long-term Objective Objective should be quantitative, measurable, realistic, understandable, challenging, hierarchical, obtainable and congruent among organizational units. Term of objective : growth in assets, growth in sales, profitability, market share, degree and nature of diversification, earning per share and social responsibility. Varying performance measure by organizational level : 5 Org’ Level Basis for Annual Bonus or Merit Pay Corporate 75% based on Long-term objectives 25% based on Annual Objectives Division 50% based on Long-term objectives 50% based on Annual Objectives Function 25% based on Long-term objectives 75% based on Annual Objectives Characteristic of Objectives Quantitative Measurable Realistic Understandable Challenging Hierarchical Obtainable Congruent across departments Benefits of Having Clear Objectives Provide direction by revealing expectation Allow synergy Aid in evaluation by serving as standard Establish priority Reduce uncertainty Minimize conflict Stimulate exertion Aid in allocation of resources Aid in design of jobs Provide basis for consistent decision making Financial vs Strategic Objectives Growth in revenue Growth in earning Higher dividends Larger profit margin Greater ROI Higher EPS Rising Stock Price Improve Cash flow Larger market share Quicker on time delivery than rivals Shorter design-to-market times than rivals Lower cost than rivals Higher product quality than rivals Wider geographic coverage than rivals Achieving technological leadership Consistently getting new or improved product to market ahead than rivals Financial Objectives Strategic Objective The Balanced Scorecard 9 “Untuk suskes secara finasial, bagaimana kita harus nampak di hadapan pemegang saham?” Objectives Measures Targets Initiatives Financial Visi & Strategi Untuk mencapai visi kita, bagaimana kita harus nampak di hadapan pelanggan Objectives Measures Targets Customer Initiatives Untuk memuaskan pemegang saham dan pelanggan, proses bisnis apa yang diperbaiki Objectives Measures Targets Internal Business Process Initiatives Objectives Measures Targets