...Guidance on the Strategic Report The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies. The FRC does not accept any liability to any party for any loss, damage or costs howsoever arising, whether directly or indirectly, whether in contract, tort or otherwise from any action or decision taken (or not taken) as a result of any person relying on or otherwise using this document or arising from any omission from it. © The Financial Reporting Council Limited 2014 The Financial Reporting Council Limited is a company limited by guarantee. Registered in England number 2486368. Registered Office: 8th Floor, 125 London Wall, London EC2Y 5AS Financial Reporting Council June 2014 Guidance on the Strategic Report Contents Page Guidance on the Strategic Report Summary 1 2 3 4 5 6 7 8 Objectives and how to use this guidance Scope The annual report The strategic report: purpose The strategic report: materiality The strategic report: communication principles The strategic report: content...
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...company has had a meteoric rise in the e-commerce world and a very successful IPO last spring, its recent advance into online gaming has not generated the level of profits anticipated * We target customers who enjoy the latest in online entertainment and games with the majority of our customers being Gen-Xers and Gen-Yers Strategic Management Process * Formulating company vision and mission statements (A mission statement defines why the organization exists and what it does. A vision statement describes the organization's vision of its future.) * Conducting a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to assess the company's internal and external environment. * Making a strategic choice-identifying the most desirable options given the company's SWOT and mission and selecting long-term goals and grand strategies that would achieve those goals. * Implementing the plan through the development of short-term goals and tactics that include budgeting resources and altering internal operations to accommodate the plan. * Evaluating the relative success of the plan and adjusting future plans accordingly. Strategic management can also be characterized by the pattern in which strategy is created and implemented within the organization (top-down, bottom-up or consensus), and whether this process is purposeful or...
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...FACULTY OF COMMERCE DEPARTMENT OF BUSINESS MANAGEMENT MASTERS IN STRATEGIC MANAGEMENT AND CORPORATE GOVERNANCE Name : BRIGHTON CHIROODZA Module : Advanced Strategic Management (MBM 702) Year : 2016 Lecturer : DR S NHUTA Assignment Question In organizations that lack strategic direction there is a tendency to look inwards in time of stress, management to cut costs and shade unprofitable divisions. This means that focus is on efficiency (relationship between inputs and output in short time horizon) rather than effectiveness (attainment of desired competitive position). Efficiency is introspective whereas effectiveness highlights the link between the organization and the environment. Discuss the above statements while giving specific examples in the Zimbabwean context. Introduction An organization that lacks strategic direction is like radar less boat. Failure to have a clear business strategic direction defeats the whole essence of engaging in that line of business, hence the need for organizations to charter their clear courses of action that help achieve the primary business objective of profitability and maximizing shareholders wealth by drawing much attention to the vision and mission of the organisation. The vision and the mission statement will enshrine the basic philosophy of the business by entailing an organization’s purpose of existence. It is the environment which we are operating on which helps make certain decisions in our stage...
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...THE PROCESS OF STRATEGIC PLANNING ARTICLE #7 OF 10 BUSINESS UNIT STRATEGY Strategic planning pays dividends to companies when approached in a disciplined process with top-down support and bottom-up participation. The following is the seventh in a series of ten articles describing one proven, tested process for effective strategic planning In the first six articles of this series we described the analysis that needs to be undertaken to be in a position to develop a clear, distinctive and differentiated Strategic Statement for the business. The first six steps of the Strategic Planning Process work are primarily about data gathering, analysis, describing and understanding the business from the views both inside and outside the company. It is a process driven and developed around fact gathering, valuing, and defining. It is developed with top down support and direction and bottom up input and analysis. Depending on the scope and complexity of the business, the next step is to develop a Strategic Statement or statements for multiple elements of the business. Those elements of the business include the overall business, each operating division of the business and each key functional area of the business. So there would be an overall company Business Strategic Statement, a Division Strategic Statement, and Functional Strategic Statements. The Functions might be Manufacturing, Marketing, Logistics or Supply Chain, Human Resources or other functions important to the success of the business...
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...Write the summary after completely learning about the chapter 3 “Human Resource Management Strategy and Analysis” A strategic plan is an organization’s plan for how it will match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage. The human resource (HR) managers must address three basic challenges: 1) support organizational productivity and performance improvement efforts; 2) employees play an expanded role in employers’ performance improvement efforts; 3) HR must be more involved in designing – not just executing – the company’s strategic plan. Strategic planning hierarchy includes specifying an organization’s mission, objectives, and actions (or specific results) associated with each objective. Therefore, reaching a strategic objective involves accomplishing a set of key actions along the way. Through the objectives and key actions set forth in this strategic plan, we will position ourselves to succeed in an ever-changing environment by efficiently and effectively carrying out our mission. Figure 1 Strategy Planning Hierarchy For example, figure 1 illustrates the strategic hierarchy embedded in the HumRRO Strategic Plan. At the top of the hierarchy is the HumRRO mission. The mission clarifies our organization’s direction and purpose. It also allows HumRRO staff and clients to see and understand how they fit into the organization’s plans for the future. From there the plan cascades through greater levels...
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... you want to look at your foundational elements (mission and value) to make sure there has not been a change. More than likely, you will not revise these two areas very often. Then you want to look at your current position or your strategic position. This is where you look at what is happening internally and externally to determine how you need to shift and change You should review your strategic position regularly through the use of a SWOT. These elements are as follows: Mission statement: The mission describes your organization’s purpose — the purpose for which you were founded and why you exist. Some mission statements include the business of the organization. Others explain what products or services they produce or customers they serve. Does your mission statement say what you do? Why does your organization exist? Values and/or guiding principles: This clarifies what you stand for and believe in. Values guide the organization in its daily business. What are the core values and beliefs of your company? What values and beliefs guide your daily interactions? What are you and your people really committed to? SWOT: SWOT is an acronym that stand for strengths, weaknesses, opportunities, and threats. These elements are crucial in assessing your strategic position with your organization. You want to build on your company’s strengths; shore up the weaknesses; capitalize on the opportunities; and recognize the threats. Where are we going? The elements of the question Where...
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...CHAPTER 1 INTRODUCTION: WHAT IS STRATEGIC MANAGEMENT? What is Strategy? The term ‘strategy’ proliferates in discussions of business. Scholars and consultants have provided myriad models and frameworks for analysing strategic choice (Hambrick and Fredrickson, 2001). For us, the key issue that should unite all discussion of strategy is a clear sense of an organization’s objectives and a sense of how it will achieve these objectives. It is also important that the organization has a clear sense of its distinctiveness. For the leading strategy guru, Michael Porter (1996), strategy is about achieving competitive advantage through being different – delivering a unique value added to the customer, having a clear and enactable view of how to position yourself uniquely in your industry, for example, in the ways in which Southwest Airlines positions itself in the airline industry and IKEA in furniture retailing, in the way that Marks & Spencer used to. To enact a successful strategy requires that there is fit among a company’s activities, that they complement each other, and that they deliver value to the firm and its customers. The three companies we have just mentioned illustrate that industries are fluid and that success is not guaranteed. Two of the firms came to prominence by taking on industry incumbents and developing new value propositions. The third was extremely successful and lost this position. While there is much debate on substance, there is agreement that strategy is concerned...
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...goals. This leads organizations towards developing strategic plans. Vision and mission statements are the cornerstone of a successful strategic plan. An organization vision statement may describe desirable and possible future state or long term aims of a company and is also a backdrop of a purpose and company’s strategy, itaffects key priorities and behavioral standards in a company(Dermol, 2012). Vision is viewed as a mental picture of a compelling future situation. It originates from creative imagination, the act or power of perceiving imaginative mental images, sort of foresightedness (Joachim, 2010). A clear and realistic vision will lead organizations towards success; it is the basis for right strategies and key priorities.The vision statement is an institution’s clear description of what it intends to become within a certain timeframe. The vision statement defines the institution’s strategic position in the future and the specific elements of that position with relationship to the mission statement, vision statements benefit the planning process by providing everyone in the institution with the same vision of the future. (Hinton, 2012) In the other hand, mission statement represents a more specific description of what an organization is seeking to achieve and how it will achieve. It also represents the organization's internal and external values. Developing a clear mission statement is a very important part in strategic planning.The mission should emphasize the main...
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...Term Paper Title : Strategic Planning and the Marketing Process (Chapter: 2) Prepared For : Syed Abul Kalam Azad Professor Department of Marketing Faculty of Business Studies University of Dhaka Members Profile : (i) Md. Ershadul Islam Id no: 41323024 E-mail: ershad1811@yahoo.com Phone: 01717-461080 Position: Manager (ii) Md. Masum Sarder Id no: 41323033 E-mail: masum.sarder@gmail.com Phone: 01913-135057 Position: Executive (iii) Abu Nasar Zahid-Al-Mahmud Id no: 41323008 E-mail: saadi013@yahoo.com Phone: 01912-027058 ...
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...CMI Level 7 Diploma in Strategic Management & Leadership Organisational Direction (7006) Unite Code Unit Name Unit Lecturer Submission Date 7006 Organisational Direction Raheel Asghar Ginai See Assignment Submission Policy ASSIGNMENT QUESTION With reference to your organisation, write a report on Organisational Direction. Your report should cover the following learning outcomes and assessment criteria:LO1: Review and determine the organisational strategic aims and objectives. Assessment Criteria 1.1Identify the current strategic aims and objectives Note: The candidate is expected to choose an organisation of his/her choice and describe briefly its current strategic aims and objectives. For example the organisation might be aiming at becoming market leader in providing high quality products, or aiming at providing low cost products to target customers who are cost conscious. Some organisations might have other aims. 1.2Undertake an evaluation of the component parts of a strategic plan Note: The strategic plan may be evaluated by taking their components individually like vision and mission. Vision may be judged by five ways suggested by Hamel and Prahalad as applied to the organisation selected by the candidate. Similarly the mission may be judged by assessing how far it meets the formulations seen by Lynch. 1.3Analyse the factors affecting the strategic plan Note: The candidate can list and explain briefly those factors which are affecting the organisation so much that their...
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...plan or a method selected and used to bring about a desired future, such as realization of a goal or solution to a problem. Strategic vision is the using of ideas to direct the activities and actions in order to grow a business and usually is included in the company statements so all manages can share the vision and make decision according with this. The strategy is providing organization, the framework for understanding its place and position on the market and how to move forward in terms of route and purpose. A mission statement describes basically what an organization is, why it happens, and its reason for existence. The mission statement reflects every facet of your business: the range and nature of the products you offer, pricing, quality, service, marketplace position, growth potential, use of technology, and your relationships with your customers, employees, suppliers, competitors and the community. A great business strategy can be summary described as an easy and clear way to understand and communicate the organization vision and mission internally and externally to the customers. IKEA had a good vision “to create a better everyday life for the many people”, using the concern of people for the environment and how to use in the better way both energy and raw materials. An aim is where the business wants to go in the future, its goals and is a statement of purpose (i.e. we want to grow the business in whole Europe). Business objectives are the quantified, declared, measurable...
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...Strategic Plan Update Strategic Planning and Implementation/STR 581 February 8, 2005 Strategic Plan Update Executive Summary Kudler Fine Food is a western United States based company, which is located in San Diego metropolitan area. It furnishes quality food products at the reasonable price and texture option of the best food product to their customers. In the year 1998, it started its functions to serve ever-growing consumers demand. The company has three stores with different departments. Its vision is to arouse its profit earning ability through capturing large market share. The company was valued for its employee fairness and high customer services. In comparison to the other competitors, the financial strength of Kudler is quite good as reflected in the forecasted Income statement and Balance sheet. The forecasted financials of the company pondered that its net revenues is showing tremendous growth. While analyzing this company, an environmental scan was necessarily to better realize the current critical situation of the company. This scanning shows internal (Strength & Weakness) and external environment (Opportunities & Threats), which reflects that despite of the number of threats faced by the company; Kudler Fine Foods efficiently asserts a comparatively strong position in the global marketplace through maintaining its apparent growth. Company’s Background In San Diego metropolitan area, Kudler Fine Foods...
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...Slide 1.1 1: Introducing Strategy Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011 Slide 1.2 Learning outcomes • Summarise the strategy of an organisation in a ‘strategy statement’. • Identify key issues for an organisation’s strategy according to the Exploring Strategy model. • Distinguish between corporate, business and operational strategies. • Understand how different people contribute to strategy at work. • Appreciate the contributions of different academic disciplines and theoretical lenses to practical strategy analysis. Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011 Slide 1.3 Definitions of strategy (1) • ‘..the determination of the long-run goals and objectives of an enterprise and the adoption of courses of action and the allocation of resource necessary for carrying out these goals’ Alfred Chandler • ‘Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value’ Michael Porter Sources: A.D. Chandler, Strategy and Structure: Chapters in the History of American Enterprise, MIT Press, 1963, p. 13 M.E. Porter, ‘What is strategy?’, Harvard Business Review, 1996, November–December, p. 60 Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011 Slide 1.4 Definitions of strategy (2) • ‘..a pattern in a stream of decisions’...
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...2 Strategic Management Strategic Management 2012 2012 1- Competitive Advantage When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is to achieve a sustainable competitive advantage. Michael Porter identified two basic types of competitive advantage: * cost advantage * differentiation advantage A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Thus, a competitive advantage enables the firm to create superior value for its customers and superior profits for itself. Cost and differentiation advantages are known as positional advantages since they describe the firm's position in the industry as a leader in either cost or differentiation. A resource-based view emphasizes that a firm utilizes its resources and capabilities to create a competitive advantage that ultimately results in superior value creation. The following diagram combines the resource-based and positioning views to illustrate the concept of competitive advantage: A Model of Competitive Advantage Resources | | | | | | Distinctive Competencies | | | Cost Advantage or Differentiation Advantage | | | Value Creation | | Capabilities | | | | | | ...
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...working for is considering buying another smaller firm. However, there is some business analysis needed for your company to make its final decision about purchasing. Throughout this course, you will be working on creating the Business Strategy and Management Plan.Keep in mind that the final Business Strategy and Management Plan template should contain the following elements: * Title page * Course number and name * Project name * Your name * Date * Table of contents * Autogenerated * Up-to-date * Maximum of 3 levels deep * Section headingsEach week, you will add a section to your Business Strategy and Management Plan and submit it for grading. For Week 1, you will make a qualitative evaluation of the industry's strategic...
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