Presentation on theme: "Strategic Management formulation Denis Manley. Assessment/exam type question Discuss how you, as head of the school of computing, would utilise an enterprise."— Presentation transcript:
Assessment/exam type question Discuss how you, as head of the school of computing, would utilise an enterprise systems architecture to formulate strategies for increasing the popularity of the school’s degree programs.
Vision “What do we want to become?” Agreement on the basic vision for which the firm strives to achieve in the long run is critically important to the firm’s success. Examples of vision statements: Ryanair’s (proposed) vision is: Ryanair wants to become the number one travel choice for all local residents and tourists in Europe.
What is our business?” Basically reveal what an organization wants to be and whom it wants to serve It is essential for effectively establishing objectives and formulating strategies Ryanair’s (actual) 2011 mission statement is: –Ryan air mission statement is to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost containment and efficiency operation. Ryan airs objective is to firmly establish itself as Europe?s leading low-fares scheduled passenger airline. Mission Statements
Mission Elements Customers Markets Employees Public Image Self-Concept Philosophy Survival Growth Profit Products Services Technology
The essential components of a mission statement Components and Questions That a Mission Statement Should Answer 1.Customers: Who are the firm’s customers? 2.Products or services: What are the firm’s major products? 3.Markets: Geographically, where does the firm compete? 4.Technology: Is the firm technologically current? 5.Concern for survival, growth, and profitability: Is the firm committed to growth and financial soundness? 6.Philosophy: What are the basic beliefs, values, aspirations, and ethical priorities of the firm? 7.Self-concept: What is the firm’s distinctive competence or major competitive advantage? 8.Concern for public image: Is the firm responsive to social, community, and environmental concerns? 9.Concern for employees: Are employees a valuable asset of the firm?
Ryanair mission statement With Ryanair’s new technological planes we hope to please all of our European customers on their travel.(4,3) We hope to serve people of all ages while providing the best service money can buy.(1,2) We will bring our low price travel, with our dedication to helping our community(7,8) and with our marketing plan we hope to grow, while providing the best work experience for our employees. (5,9) We will treat everyone equally and with the upmost respect.
2x average return on shareholder’s equity Positive relationship to company performance 30% higher return on certain financial measures Vision & Mission Research results are mixed, however, firms with formal mission statements generally see a:
Coke’s (proposed) Mission statement At Coca Cola we aspire to stay the world’s leader focused on producing and selling superior quality carbonated beverages in the soft drink industry. We strive to treat our employees, customers, and our communities with respect. We also seek to provide healthy financial rewards to our shareholders and business partners by using the latest technology and hiring the most skill employees. We always use ethical practices that assist in displaying Coca Cola’s public image as being trustworthy, loyal, and honest.
Strategies represent “actions” to accomplish long- term objectives (results) Objectives are commonly stated in terms such as –growth in assets, –growth in sales, –profitability, –market share, –degree and nature of diversification. Long-term objectives are needed at many levels in an organisation the corporate, divisional, and functional levels in an organization (including I.T. function) What are Long-Term Objectives
Financial v. Strategic Objectives Financial Objectives Growth in revenues Growth in earnings Higher dividends Higher profit margins Higher earnings per share Improved cash flow Larger market share Quicker on-time delivery than rivals Quicker design-to-market times than rivals Lower costs than rivals Higher product quality than rivals Wider geographic coverage than rivals Strategic Objectives
Financial vs. Strategic Objectives It is a Trade-Off between both Maximize short-term financial objectives – harm long-term strategic objectives Pursue increased market share at the expense of short-term profitability Tradeoffs related to risk of actions
Align IT with business objectives 75 percent of businesses fail to align their IT with their business objectives, leading to lower profitability The first step in using information systems to serve your firm is to make sure the IS objectives are lined up with the business objectives. To align IT: Identify business goals and strategies Break strategic goals into concrete activities and processes Identify metrics for measuring progress Determine how IT can help achieve business goals Measure actual performance
Sample Question Discuss, using suitable examples, what you would consider to be three of most important elements of an “ideal mission statement “ for an organisation of your choice. (15 marks)
Assessment/exam type question Discuss how you, as head of the school of computing, would utilise an enterprise systems architecture to formulate strategies for increasing the popularity of the schools Degree programs. What parts of the lecture could you use to help answer the above?