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LAUNCHING NEW
VENTURES:
Vision-Mission-
Objectives-Strategies
BUSPLA2
DR. EMIE SARREAL
STRATEGIES
• Best means by which an organization can
achieve its desired goals
• Four types of strategizing:
– Adaptive strategizing
– Ideological strategizing
– Creative strategizing
– Rational, sequential, and analytical strategizing
Adaptive Strategizing
• Assess opportunities as they come
along, evaluate the risks of pursuing
these opportunities, and make
decisions according to set criteria
• Examples: building blocks, locomotive
train, hub and spokes, molecules,
chess game, amoeba, niching
Ideological Strategizing
• Basis for strategies are espoused set
of beliefs, philosophies or ideologies
• Examples: Christianity and Islam,
Capitalist and Socialist, Republicans
and Democrats, cause-oriented
groups, NGOs
Creative Strategizing
• Concerned about inventing new
products and services, innovating on
new technologies, and processes and
discovering or uncovering new
markets
Best Practices of Highly
Creative Enterprises
• How are the enterprises organized and structured?
• How are creative people hired and nurtured?
• What kinds of environment is needed to foster creativity
and innovation?
• What creative thinking tools or techniques are used?
• What are the processes employed to generate, evaluate,
and choose creative ideas?
• How are the creative teams motivated and rewarded?
• What kind of organizational culture do these organizations
possess?
• Who in the organization promotes and champions creativity?
Rational, Sequential and
Analytical Strategizing
• Follows step-by-step process using logical reasoning
– Top down
• starts from futuristic vision of the organization ->
mission statement -> objectives -> key result areas ->
performance indicators -> strategies ->
objectives/action plans ->activities -> tasks – resources
required
– Bottom up
• Realities of the external (O and T) and internal (S and
W) environments
• Matching OT with SW  SWOT analysis allows
development of strategic options
SOURCE: MORATO, E.(2006),
Strategic Planning and
TOP DOWN &
BOTTOM UP PLANNING
Vision
• Futuristic picture of the enterprise,
described in words or a vision
statement
• Timebound, ambitious but realistic,
and with geographical and target
market (customer and product) focus
Mission/Goals
• Proclaims the basic purpose for the
existence of the organization
• Specifies product or service to be
rendered, defines the market.
• For whose benefit is it being established?
• Two main stakeholders are the owners and
the employees whose desire for better
lives must be satisfied
Objectives
• Measurable end results, usually
center around major ends:
– Increasing profits
– Expanding markets
– Satisfying customers with quality
products and services
– Providing reasonable compensation and
benefits to employees
Key Result Areas
(KRAs)
• Attainment of objectives or
measurable end results can be
manifested and measured by KRAs
• KRAs are qualitative manifestations
or proofs that the objectives are
being achieved
Performance Indicators
(PIs)
• KRAs must be converted into numerical
performance indicators
• PIs are exact quantifications of the KRAs
• PIs or outcomes fall into any of the six R’s
– Reach
– Recognition
– Ratings
– Revenues
– Returns
– Responsiveness
Strategies
• In how many ways can the performance
indicators be attained?
– ALTERNATIVE STRATEGIC OPTIONS
SHOULD BE SUBSTANTIALLY DIFFERENT
FROM ANOTHER (MUTUALLY EXCLUSIVE)
– MAJOR MOVE OR SIGNIFICANT CHANGE
IN THE OVERALL DIRECTION OF THE
ORGANIZATION
Types of Strategies
• Generic Strategies
– Cost leadership
– Differentiation
– Focus-Cost Leadership
– Focus-Differentiation
• Functional Area Strategies
– Marketing Strategies
– Operations/Production Strategies
– Financial Strategies
– Information Systems Strategies
– Human Resource Strategies
Functional Strategies
• Marketing strategies
– Segmentation strategies
– Target market selection strategies
– Differentiation strategies
– Marketing Mix strategies
Functional Strategies
• Operations Methods
– Production process strategies
– Capacity strategies
– Location strategies
– Work Design strategies
– Layout strategies
Functional Strategies
• Financial and Accounting Strategies
– Evaluating financial performance
– Financial forecasting, planning and
budgeting
– Financing mix
Functional Strategies
• Information System Strategies
– Manual
– Computer Based
• Types of Information Systems for Entrepreneurial
Ventures
– Transaction Processing System (TPS)
– Office Automation System (OAS)
– Management Information System (MIS)
– Decision Support System (DSS)
– Executive Support System (ESS)
Activities
• Undertakings of groups within an
organization to accomplish the
programs assigned to different group
– Specify what the various groups must do
to accomplish the program
– Include all important actionable work
plans that must be achieved
Tasks
• What individuals in the organizations
do to ensure that the activities are
done.
• An activity is a set of tasks – details
of what must be executed within a
specific time frame
Resources
• Tasks demand certain amounts of resources
• Resources are the inputs required to deliver
tasks, activities, programs and strategies
• Resources can be stated in terms of 3 P’s of
People, Pesos and Physical Assets
• Alternatively, resources can be in terms of the
six M’s of input: money, manpower, machinery
and equipment, materials, methods and
management

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VMOS_SLIDES.pptx

  • 2. STRATEGIES • Best means by which an organization can achieve its desired goals • Four types of strategizing: – Adaptive strategizing – Ideological strategizing – Creative strategizing – Rational, sequential, and analytical strategizing
  • 3. Adaptive Strategizing • Assess opportunities as they come along, evaluate the risks of pursuing these opportunities, and make decisions according to set criteria • Examples: building blocks, locomotive train, hub and spokes, molecules, chess game, amoeba, niching
  • 4. Ideological Strategizing • Basis for strategies are espoused set of beliefs, philosophies or ideologies • Examples: Christianity and Islam, Capitalist and Socialist, Republicans and Democrats, cause-oriented groups, NGOs
  • 5. Creative Strategizing • Concerned about inventing new products and services, innovating on new technologies, and processes and discovering or uncovering new markets
  • 6. Best Practices of Highly Creative Enterprises • How are the enterprises organized and structured? • How are creative people hired and nurtured? • What kinds of environment is needed to foster creativity and innovation? • What creative thinking tools or techniques are used? • What are the processes employed to generate, evaluate, and choose creative ideas? • How are the creative teams motivated and rewarded? • What kind of organizational culture do these organizations possess? • Who in the organization promotes and champions creativity?
  • 7. Rational, Sequential and Analytical Strategizing • Follows step-by-step process using logical reasoning – Top down • starts from futuristic vision of the organization -> mission statement -> objectives -> key result areas -> performance indicators -> strategies -> objectives/action plans ->activities -> tasks – resources required – Bottom up • Realities of the external (O and T) and internal (S and W) environments • Matching OT with SW  SWOT analysis allows development of strategic options
  • 8. SOURCE: MORATO, E.(2006), Strategic Planning and TOP DOWN & BOTTOM UP PLANNING
  • 9. Vision • Futuristic picture of the enterprise, described in words or a vision statement • Timebound, ambitious but realistic, and with geographical and target market (customer and product) focus
  • 10. Mission/Goals • Proclaims the basic purpose for the existence of the organization • Specifies product or service to be rendered, defines the market. • For whose benefit is it being established? • Two main stakeholders are the owners and the employees whose desire for better lives must be satisfied
  • 11. Objectives • Measurable end results, usually center around major ends: – Increasing profits – Expanding markets – Satisfying customers with quality products and services – Providing reasonable compensation and benefits to employees
  • 12. Key Result Areas (KRAs) • Attainment of objectives or measurable end results can be manifested and measured by KRAs • KRAs are qualitative manifestations or proofs that the objectives are being achieved
  • 13. Performance Indicators (PIs) • KRAs must be converted into numerical performance indicators • PIs are exact quantifications of the KRAs • PIs or outcomes fall into any of the six R’s – Reach – Recognition – Ratings – Revenues – Returns – Responsiveness
  • 14. Strategies • In how many ways can the performance indicators be attained? – ALTERNATIVE STRATEGIC OPTIONS SHOULD BE SUBSTANTIALLY DIFFERENT FROM ANOTHER (MUTUALLY EXCLUSIVE) – MAJOR MOVE OR SIGNIFICANT CHANGE IN THE OVERALL DIRECTION OF THE ORGANIZATION
  • 15. Types of Strategies • Generic Strategies – Cost leadership – Differentiation – Focus-Cost Leadership – Focus-Differentiation • Functional Area Strategies – Marketing Strategies – Operations/Production Strategies – Financial Strategies – Information Systems Strategies – Human Resource Strategies
  • 16. Functional Strategies • Marketing strategies – Segmentation strategies – Target market selection strategies – Differentiation strategies – Marketing Mix strategies
  • 17. Functional Strategies • Operations Methods – Production process strategies – Capacity strategies – Location strategies – Work Design strategies – Layout strategies
  • 18. Functional Strategies • Financial and Accounting Strategies – Evaluating financial performance – Financial forecasting, planning and budgeting – Financing mix
  • 19. Functional Strategies • Information System Strategies – Manual – Computer Based • Types of Information Systems for Entrepreneurial Ventures – Transaction Processing System (TPS) – Office Automation System (OAS) – Management Information System (MIS) – Decision Support System (DSS) – Executive Support System (ESS)
  • 20. Activities • Undertakings of groups within an organization to accomplish the programs assigned to different group – Specify what the various groups must do to accomplish the program – Include all important actionable work plans that must be achieved
  • 21. Tasks • What individuals in the organizations do to ensure that the activities are done. • An activity is a set of tasks – details of what must be executed within a specific time frame
  • 22. Resources • Tasks demand certain amounts of resources • Resources are the inputs required to deliver tasks, activities, programs and strategies • Resources can be stated in terms of 3 P’s of People, Pesos and Physical Assets • Alternatively, resources can be in terms of the six M’s of input: money, manpower, machinery and equipment, materials, methods and management