Strategy and Management Control System Overview
This overview provides insight into the strategies and management control systems by Priyanka Darshana, an experienced professional with an MBA and CMA qualifications, offering a perspective on marketing and business development.
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Presentation Transcript
Strategy and Management Control System Overview Overview Priyanka Darshana MBA (Aus), ACMA (UK), CGMA, B B Marketing (Kelaniya) 1
Module aim This competencies, and skills relating to the notion of strategy and its connections with the practices of management controls in the organization, with reference to strategy concepts and emerging management control system practices. module aims to impart knowledge,
Intended learning outcome By the end of this module, a student should be able to do the following: 1. Understand why, how and what concepts of strategy developed worldwide, making everybody strategic conscious 2. Understand why, how and what concepts of management control systems developed worldwide making everybody control conscious 3. Articulate the relationship between strategy and MCS, with an emphasis on the changing nature of management control systems
Definition of Strategy Johnson and Scholes define strategy as: "...the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations".
Tasks Involved in Strategic Management & MCS Defining business and stating a Vision/mission Setting measurable objectives Crafting a strategy to achieve objectives Implementing a strategy Evaluating performance of the strategy, reviewing new developments and taking corrective action
Defining the mission/vision and objectives of the organization Defining the mission and vision is the starting point of the strategy development Mission statement address the purpose or objective of existence. Vision is desired end state of the business
Mission Purpose, Duty or Task
McDonalds Mission Statement Our mission is to be our customers favorite place and way to eat & drink. We re dedicated to being a great place for our people to work; to being a strong, positive presence in your community; and to delivering the quality, service, cleanliness and value our customers have come to expect from the Golden Arches a symbol that s trusted around the world. Apple Mission Statement Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings."
BBCs purpose statement To educate, inform and entertain To educate, inform and entertain Walt Disney s Purpose Statement To make people happy
Case 1 Did anyone believe a mission that aimed at connecting around the would build a global business and bring the man behind mission to the list of Top 10 richest in the world ? people world, the
Top 10 Richest in the World o. Name Net worth(USD) Age Nationality Source(s) of wealth 1 JeffBezos $113 billion 56 UnitedStates Amazon 2 BillGates $98 billion 64 UnitedStates Microsoft 3 Bernard Arnault andfamily $76 billion 71 France LVMH 4 WarrenBuffett $67.5 billion 89 UnitedStates BerkshireHathaway 5 LarryEllison $59 billion 75 UnitedStates OracleCorporation 6 Amancio Ortega $55.1 billion 84 Spain Inditex,Zara 7 Mark Zuckerberg $54.7 billion 35 United States Facebook 8 JimWalton $54.6 billion 71 UnitedStates Walmart 9 AliceWalton $54.4 billion 70 UnitedStates Walmart 10 S. RobsonWalton $54.1 billion 77 UnitedStates Walmart Forbes Jan 2020
Vision A realizable dream, Art of seeing the invisible.
Case-2 Martin Luther King
Vision statement Desired end state of the business Developing vision document Where you need to be and how you would like to see by 2025 What do you need achieve/accomplished by next 10 years VISION 2025 To become a most sought-after private health care brand in Sri Lanka
Vision, objectives and strategic road map VISION 2020 Objectives Strategic road map What will be your achievements
Objectives Common shared objective (Goal congruence not the sub optimization) Strategic Objectives and Financial objectives SMART objectives
Strategic Objectives Focused on improving long term competitive business position. 1. Wining a X % of Market share 2. Achieving lower COP than competitor 3. Having a wider products line than competitor 4. Increase the brand position in the market 5. Consistently introducing new or improved products to market
Financial Objectives Outcome focused on improving financial results of firm. 1. 10% growth in turn over (YOY) 2. Increasing PAT by 5% (YOY) 3. Increasing EPS by 10% (YOY) 4. Increasing Dividend yield and up ward trading the share price
Tourism in Sri Lanka: Strategic road map 2025 Vision 2025 It is hoped that Sri Lanka will be identified as a place for memorable, authentic and diverse tourism experiences by 2025. Mission Fundamentally, the ambitions of this Tourism of Sri Lanka is to increase revenue for the country, support local communities, and increase tourism on a sustainable platform.
Stakeholders involvement Tourist Communities Investors Workforce Government
Strategic Objectives 4 Years Strategic Plan to achieve the objectives
The essence of strategy of the organization Perspective strategy or rational view An emergent view
What is emergent perspective to strategy A set of certain consistent actions that form an unintended pattern that was not initially anticipated or intended in the initial planning phase. For example, although unintended, adopting an emergent strategy might help a business adapt more flexibly to the practicalities of changing market conditions. Strategy Emerged outside the formal plan /Unintended pattern recognizing the changing conditions More planned approached/ Intended strategy
Strategic drift Strategic happens when organization strategy is no longer relevant to the external environment facing it Intended strategy through Deliberate planning process Environment forces ????? Strategic drift
Case-02 You press the button, we do the rest
Case-03 What if you don t redefine your business purpose Strategic drift
CASE STUDY 04- Ceylinco General Insurance Most admired motor insurance brand Most Innovative Motor Insurance solution- 2006 Brand Finance Ranking 2018 CONSUMER INSIGHTS Life style changes of the target consumer Conventional claim settlement process- CSLT I MONTH Brand proposition Hazel free Motor Insurance solution BRAND IMPACT 48% Market Share CUSTOMER PAIN POINTS
CASE STUDY 05- Redefining one day cricket Traditional ONE day cricket 8 hours, 100 overs Consumer Insight Redefine as a game of entertainment Brand proposition 20 /20 cricket International cricketers represent teams Bollywood stars as brand icons Cheer girls Brand Impact IPL Brand value USD 5.3 billon
CASE STUDY 06- Redefining traditional taxi service Traditional taxi service was not changed in last 45 years Consumer Insight Convenience taxi service Brand proposition Mobile taxi App What is next???
How can companies survive a strategic drift 1. Organizational leadership and adaptable culture 2. Continues assessment of trends, emergence of direct and indirect competitors, technological changes and adjustment in to the current plan. https://www.youtube.com/watch?v=dqwAZKrc6vw
