Strategic objectives exercise

AGAIN IN TEAMS:
DO THREE STRATEGIC OBJECTIVES FOR EACH
TYPE TO YOUR ORGANIZATION

Increase our profitability

Grow our market share

Enhance operational efficiency

Develop your workforce

 Main Elements of Strategy
Formulation

• Vision
• Mission
• Objectives
• Policies and procedures
 Policies

Specific guidelines, methods, procedures, rules,

forms, and administrative practices established
to support and encourage work towards stated
goals.

Broad guidelines to managerial actions and

decisions in the implementation of strategy.
 Policies, Procedures, and Rules
• Procedures are detailed series of related
steps/tasks written to implement a policy
• Define methods through which policies
are achieved
 Policies, Procedures, and Rules

• Procedures: the customer service

representative must note the complaint of
Form 622 and forward the yellow copy of
the form…
• Rules detail specific and definite
corporate actions that employees must
follow
• Leave little doubt about what is to be
done
• no smoking in the conference room
 The reason for the existence STRATEGIC ACTION PLANNING
of the organization & MISSION
establishes the values,
Statistical Institute of Jamaica
beliefs & guidelines for the
conduct of business The long range objectives that
VISION will drive the development
process and stretch the
organization to achieve them.

SWOT Analysis

Internal Environment External Environment

Strengths Opportunities
Weaknesses Threats
- Value systems - The changing environment
- Culture - The demand for new products
- Staffing - The economic environment
- Support systems, operating environment - Availability of resources

STRATEGIC AREAS FOR DEVELOPMENT

STRATEGIC OBJECTIVES

Strategic Strategic Strategic Strategic

Action 1 Action 2 Action 3 Action 4

EVALUATION/FEEDBACK
SWOT analysis
 What is SWOT Analysis?

• Acronym for Strengths, Weaknesses,

Opportunities, and Threats.
• Technique is credited to Albert Humphrey
who led a research project at Stanford
University in the 1960s and 1970s.
• Planning tool used to understand Strengths,
Weaknesses, Opportunities, & Threats
involved in a project / business.
 What is SWOT Analysis?

• Used as framework for organizing and using

data and information gained from situation
analysis of internal and external
environment.
• Technique that enables a group / individual
to move from everyday problems /
traditional strategies to a fresh perspective.
 Strengths
• Characteristics of the business or a team that give it an
advantage over others in the industry.
• Includes human competencies, process capabilities,
financial resources, products and services, customer
goodwill and brand loyalty.
• Examples - Abundant financial resources, Well-known
brand name, Economies of scale, Lower costs [raw
materials or processes], Superior management talent,
Better marketing skills, Good distribution skills,
Committed employees.
 Opportunities

• Arise when an organization can take benefit of

conditions in its environment to plan and execute
strategies that enable it to become more
profitable.
• Organization should be careful and recognize the
opportunities and grasp them whenever they
arise.
• Examples - Rapid market growth, Rival firms are
complacent, Changing customer needs/tastes,
New uses for product discovered, Economic
boom, Government deregulation, Sales decline for
a substitute product .
 Weaknesses
• Characteristics that place the firm at a
disadvantage relative to others.
• Weaknesses are the factors which do not meet
the standards we feel they should meet. However,
weaknesses are controllable. They must be
minimized and eliminated.
• Examples - Limited financial resources, Weak
spending on R & D, Very narrow product line,
Limited distribution, Higher costs, Out-of-date
products / technology, Weak market image, Poor
marketing skills, Limited management skills,
Under-trained employees.
 Threats

• External elements in the environment that

could cause trouble for the business
• Threats are uncontrollable. When a threat
comes, the stability and survival can be at
stake.
• Examples - Entry of foreign competitors,
Introduction of new substitute products,
Product life cycle in decline, Changing
customer needs/tastes, Rival firms adopt
new strategies, Increased government
regulation, Economic downturn.
SWOT examples