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Business Managment: The Strategic Management Process

3141 words - 13 pages

Comment on the tools used to express strategic intent of each company.
Over the last few decades business strategy has evolved substantially. Management of any business must constantly evaluate and analyze internal environment strength and weaknesses, and monitor external environment for threats and opportunities. Firms must define their positions and develop sustainable competitive advantages in the face of these competitive challenges and threats. (Casadesus-Masanell, R and Enric Ricart, J, 2010) It’s expected of management to consider these changes and adjust strategy as and when needed. Strategic management is about change, and planning to survive amid change. (Smit, PJ et al., 2007). ...view middle of the document...

Research indicated that Companies with a vision were twice as profitable as S&P 500 as a group (Lipton, M, 2004)

Astrapak established a long-term strategic direction by means of their vision. In their vision they mention their product-customer-market-technology mix.
Nampak’s website and annual reports didn’t highlight vision for company as such, but have a vision for South African division Nampak Tissue.
In contrast to above two companies, there is no indication of vision statement from Transpaco Company. It seems that they only established code of ethics and utilize code of business principles to describe operational standards.
The mission
Where the vision statement reflects the dream of a firm for the future, the mission statement translates it to reality. It aligns the firm with its dream in terms of products, markets and technology. (Smit, PJ et al., 2007). According to authors the following questings can be asked by management when formulating mission statement:
• What is our product\business?
• Who is our client\market?
• How will we provide this product or service?
Astrapak utilize mission statement as tool to describe their purpose. Their mission is however very vague in selecting market. Nampak however support their mission and vision statement with a principle statement.
Neither Nampak nor Transpaco utilize mission statements to address how they will compete or how they will operate. It seems that they describe purpose in overview and business model.
Values
The values of a Company are the beliefs, traits, and behavior norms determined by management (and employees) to guide the pursuit of the vision and mission (Thompson, AA et al., 2012)
Astrapak and Nampak tissue included a clear set of core values to be reflected by staff while conducting business operations and to guide behavior.
Transpaco seems to incorporate value system as code of business principles addressed as their Code of Ethics.
Stage 2 of strategic management process.
Setting objectives and crafting strategy
Management must convert the vision and mission into specific goals. Thompson et al. (2012) suggested two performance targets:
• Financial objective measure Company’s financial performance
• Strategic objectives are related to Company’s market standings and competitiveness.
Astrapak Executive Committee and the Board of Directors have clarified aspects and targets to align strategic direction to changes in business environment. Astrapak base achievement of their strategic objectives on three main pillars; develop and empower people, improving efficiency and reliability of operations, and minimizing environmental impact.
From Astrapak Integrated annual Chairman’s report for 2013 Astrapak has undergone major changes both at executive and operational level over the past year that is part of their strategy of complete restructuring. The viewpoint is that the restructuring will provide opportunity to review operations, and to deliver improved and sustainable performance...

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