Strategic formulation

2. K.G.D.MAHEERATHNE

3. Company overview
History of Rayan air’s
Vision & Mission
Overview

4. Who is this gentlemen /Do you
know ?

5. Company overview
The company is headquartered in Dublin ,Ireland.
Low cost scheduled passenger airlines in Europe
One of the key players within the market and the most
profitable
Every year it opened new hubs in Europe started flights
from ,new airports and added to its aircraft fleet .
In 2003 company bought buzz another low cost airline

6. 1985: The
Beginning
•51 Employees
•15 Seat Aircraft
•5’2” Standard
1990: Rapid Growth And The
Upset
•Accumulates £20M Losses
•20m invested
•Copying the Southwest Model
•Michael O’ Leary, Restructured
2004: Most Popular
Online Booking
2014
Now operates more
1500 flights per day
from 44 bases and
across 27 countries

8. Strategic formulation
Strategy Formulation
Vision & Mission and Objectives
External assessment
Strategy formulation
Strategy implementation
Strategy valuation
Internal assessment

9. “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 wants to become the number one travel choice for all local
residents and tourists in Europe.
The Vision of Pepsi To become the leading producer and marketer of
food and beverage products in the world
Vision

10. Specific questions that help form strategic visions
What businessarewein now ?
What businessdo wewant bein ?
What will our customerswant in future?
What areexpectationsof our stakeholders?
Who will beour futurecompetitors?Suppliers?
Partners?
 what should our competitivescopebe?
How will technology impact our industry ?
What environmental scenariosarepossible?

11. What is our business?”
Reveal what an organization wants “will be” and
whom it wants to serve (essentially like the aim)
Essential for effectively establishing objectives
and formulating strategies
Mission Statements

12. MissionMission
ElementsElements
CustomersCustomers
EmployeesEmployees
PublicPublic
ImageImage
Self-ConceptSelf-Concept PhilosophyPhilosophy
SurvivalSurvival
GrowthGrowth
ProfitProfit
TechnologyTechnology
MarketsMarkets
ProductsProducts
ServicesServices
Components of a mission statement

13. • 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?
The essential components of a mission
statement

14. 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?
The essential components of a
mission statement con….

15. Benefits of Mission statements
Research results are mixed, however, firms with
formal mission statements generally see a:
• 2x average return on shareholder’s equity
• Positive relationship to company performance
• 30% higher return on certain financial measures

16. Ryanair mission statement
•With Ryan air'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.

17. Setting objectives
purpose of setting objectives management
Convert mission into performance targets
Crate yardsticks to track performance
Establish performance goals requiring stretch
Push firm to be inventive, intentional, focused
Setting CHALLENGING but ACHIVABLE objectives
guards against
Complacency
Drift
Internal confusion
Status quo performance

18. Objectivesarecommonly stated in termssuch as:
growth in assets,
profitability,
market share
degreeand natureof diversification.
Long-term objectivesareneeded at thecorporate, divisional,
and functional levelsin an organization.
Strategiesrepresent actionsto accomplish long-term
objectives
Objectives

20. THANK YOU