1. E.F.R Group of CompaniesE.F.R Group of Companies
Annual General Meeting – 2007Annual General Meeting – 2007
Presented by LogisticsPresented by Logistics
( Gold Shipping )( Gold Shipping )
3. VisionVision
To be theTo be the leaderleader in any industry wherein any industry where
our group of companies choose to operateour group of companies choose to operate
either within Myanmar or Overseaseither within Myanmar or Overseas
4. MissionMission
We are anWe are an innovativeinnovative organization andorganization and continuously improvecontinuously improve ourour
process, products and resourcesprocess, products and resources
We areWe are committedcommitted to meet our customer’s needs includingto meet our customer’s needs including
reliability, quality, service and efficiency in a manner that anticipatesreliability, quality, service and efficiency in a manner that anticipates
andand exceeds their expectationexceeds their expectation
We endeavour to provideWe endeavour to provide challenging career developmentchallenging career development to ourto our
employees through training, employee involvement and humanemployees through training, employee involvement and human
resource planningresource planning
We believe in the spirit of co-operation and co-ordination andWe believe in the spirit of co-operation and co-ordination and
intend to earn the confidence and respect of our member companiesintend to earn the confidence and respect of our member companies
by providing support, guidance, and share of information and therebyby providing support, guidance, and share of information and thereby
survive and prosper togethersurvive and prosper together
5. Core ValuesCore Values
Honesty and IntegrityHonesty and Integrity
Trust worthinessTrust worthiness
TransparencyTransparency
AccountabilityAccountability
Team workTeam work
Staff DevelopmentStaff Development
HappinessHappiness
6. ObjectivesObjectives
Financial Objectives Strategic Objectives
Outcomes focused onOutcomes focused on
improvingimproving financialfinancial
performanceperformance
Outcomes focused onOutcomes focused on
improvingimproving long-term,long-term,
competitivecompetitive businessbusiness
positionposition
$
To gain 30% market share in 2008
8. The Five TasksThe Five Tasks
of Strategic Managementof Strategic Management
Craft a
Strategy
to Achieve
Objectives
Set
Objectives
Develop a
Strategic
Vision
and
Mission
Implement
and
Execute
Strategy
Improve/
Change
Revise as
Needed
Revise as
Needed
Improve/
Change
Recycle
as Needed
Task 1Task 1 Task 2Task 2 Task 3Task 3 Task 4Task 4 Task 5Task 5
Monitor,
Evaluate,
and Take
Corrective
Action
9. Crafting a StrategyCrafting a Strategy
Strategy involves determiningStrategy involves determining whetherwhether toto
• Concentrate on a single business or severalConcentrate on a single business or several
businesses (diversification)businesses (diversification)
• Cater to a broad range of customers or focusCater to a broad range of customers or focus
on a particular nicheon a particular niche
Pursue a competitive advantage based onPursue a competitive advantage based on
Low costLow cost oror
DifferentiationDifferentiation oror
Unique organizational capabilitiesUnique organizational capabilities
10. Involves decidingInvolves deciding howhow toto
• Respond to changing buyer preferencesRespond to changing buyer preferences
• Respond to new market conditionsRespond to new market conditions
• Grow the business over the long-termGrow the business over the long-term
• Achieve performance targetsAchieve performance targets
• Outcompete rivalsOutcompete rivals
Crafting a StrategyCrafting a Strategy
11. TheThe HowsHows ThatThat
Define a Firm's StrategyDefine a Firm's Strategy
HowHow to grow the businessto grow the business
HowHow to fulfill customers needsto fulfill customers needs
HowHow to outcompete rivalsto outcompete rivals
HowHow to respond to changingto respond to changing
market conditionsmarket conditions
HowHow to manage each functional unit of theto manage each functional unit of the
business and develop needed organizationalbusiness and develop needed organizational
capabilitiescapabilities
HowHow to achieve strategic and financial objectivesto achieve strategic and financial objectives
12. Why Do Strategies Evolve?Why Do Strategies Evolve?
There isThere is alwaysalways an ongoing need to react toan ongoing need to react to
• Shifting market conditionsShifting market conditions
• Fresh moves of competitorsFresh moves of competitors
• New technologiesNew technologies
• Evolving customer preferencesEvolving customer preferences
• Political and regulatory changesPolitical and regulatory changes
• New windows of opportunityNew windows of opportunity
13. Three Strategy HorizonsThree Strategy Horizons
for Sustaining Rapid Growthfor Sustaining Rapid Growth
Source: Adapted from Eric D. Beinhocker, “Robust Adaptive
Strategies,” Sloan Management Review 40, No. 3 (Spring 1999), p.101.
Portfolio of
Strategy Initiatives
• “Short-jump”
initiatives to fortify
and extend current
businesses
• Immediate gains in
revenues and profits
Time
• “Medium-jump”
initiatives to leverage
existing resources
and capabilities to
pursue growth in
new businesses
• Moderate revenue
and profit gains now,
but foundation laid
for sizable gains over
next 2-5 years
• “Long-jump”
initiatives to sow the
seeds for growth in
businesses of the
future
• Minimal revenue
gains now and likely
losses, but potential
for significant
contributions to
revenues and profits
in 5-10 years
14. Evaluation on current shipping industryEvaluation on current shipping industry
Slowing demand breeds stiffer competitionSlowing demand breeds stiffer competition
More sophisticated buyers demand bargainsMore sophisticated buyers demand bargains
Greater emphasis on cost and serviceGreater emphasis on cost and service
International competition increasesInternational competition increases
Industry profitability fallsIndustry profitability falls
Mergers and acquisitions reduce the number ofMergers and acquisitions reduce the number of
industry rivalsindustry rivals
Characteristics of Industry MaturityCharacteristics of Industry Maturity
15. Strategy Options for CompetingStrategy Options for Competing
in a Mature Industryin a Mature Industry
PrunePrune marginal products and modelsmarginal products and models
EmphasizeEmphasize innovationinnovation in thein the value chainvalue chain
Strong focus onStrong focus on cost reductioncost reduction
Increase salesIncrease sales to present customersto present customers
Purchase rivalsPurchase rivals at bargain pricesat bargain prices
ExpandExpand internationallyinternationally
Build new, moreBuild new, more flexible competitiveflexible competitive capabilitiescapabilities
16. Understanding a Company’s StrategyUnderstanding a Company’s Strategy
What to Look ForWhat to Look For
Pattern
of Actions
That Define
Strategy
Actions to strengthenActions to strengthen
resources &resources &
capabilitiescapabilities
Actions to diversifyActions to diversify Actions to outcompete rivals
Responses to
changing external
circumstances
Actions to alter
geographic
coverage
Actions to form strategic
alliances and collaborative
partnerships
How functional
activities are
managed
Efforts to pursueEfforts to pursue
new opportunities ornew opportunities or
defend against threatsdefend against threats
Actions to merge or
acquire rival companies
17. When Does DiversificationWhen Does Diversification
Start to Make Sense?Start to Make Sense?
Strong competitiveStrong competitive
position, rapid marketposition, rapid market
growth --growth -- NotNot a gooda good
time to diversifytime to diversify
Strong competitiveStrong competitive
position, slow marketposition, slow market
growth -- Diversificationgrowth -- Diversification
isis top prioritytop priority
considerationconsideration
Weak competitiveWeak competitive
position, rapid marketposition, rapid market
growth --growth -- NotNot a gooda good
time to diversifytime to diversify
Weak competitiveWeak competitive
position, slow marketposition, slow market
growth -- Diversificationgrowth -- Diversification
meritsmerits considerationconsideration
18. When to Diversify?When to Diversify?
Diminishing growthDiminishing growth prospects in present businessprospects in present business
Opportunities toOpportunities to add valueadd value for customers orfor customers or gaingain
competitive advantagecompetitive advantage by broadening presentby broadening present
business to include complementary productsbusiness to include complementary products
Attractive opportunities toAttractive opportunities to transfertransfer existingexisting
competenciescompetencies to new businessesto new businesses
PotentialPotential cost-saving opportunitiescost-saving opportunities to be realized byto be realized by
entering related businessesentering related businesses
AvailabilityAvailability of adequate financial and organizationalof adequate financial and organizational
resourcesresources
19. Actions to diversifyActions to diversify
Diversify into Related Businesses
Build shareholder value by capturing cross-business
strategic fits
Transfer skills and capabilities from one business to
another
Share facilities or resources to reduce costs
Leverage use of a common brand name
Combine resources to create new competitive
strengths and capabilities
20. Actions to strengthenActions to strengthen
resources & capabilitiesresources & capabilities
Intellectual Capital
Career development to our employees
through training, employee involvement
and human resource planning
Providing supports, guidance and
share of information and thereby
survive and prosper together
21. The Five TasksThe Five Tasks
of Strategic Managementof Strategic Management
Craft a
Strategy
to Achieve
Objectives
Set
Objectives
Develop a
Strategic
Vision
and
Mission
Implement
and
Execute
Strategy
Improve/
Change
Revise as
Needed
Revise as
Needed
Improve/
Change
Recycle
as Needed
Task 1 Task 2 Task 3 Task 4 Task 5
Monitor,
Evaluate,
and Take
Corrective
Action
