Question

This essay is general in nature and is aimed at assessing the students’ understanding of key concepts related to strategic planning and management, focusing on the importance of the process of designing vision, mission and value statement for an organization, the role of objective setting (long-term objectives and their organizational benefits) in the process as well as the stages of developing strategic plans, focusing mostly on strategy formulation and implementation.
On the theoretical level, students are expected to express their agreement or disagreement with the views in the literature based on their professional experience. On a more practical level. using the ‘Comprehensive Strategic-Management model (David 2013, students are encouraged to interpret the stages through examples from their own organizations. The essay should conclude with an original summary of the theoretical discussion, highlighting the key lessons learned from theory in light examples presented.

(1000 words )

Answer 1

A Comprehensive Strategic Management Model is a framework of multi-stage systematic goal setting and accomplishment guidelines that facilitates the management with a bird’s eye view of how to proceed with the action plans.

I work in a finance company and can relate the core components of Comprehensive Strategic Management Model with the real world situations as below :

• Strategic Assessment : Its an evaluation of the organisation’s asset base, net worth, liquidity, market opportunities, competitiveness, quality of human resource, available technology, risk perception and various external factors like socio-political environment and industry policies.

In the context of my workplace I can say that Strategic Assessment was periodically done in the form of detailed Annual Reports preparation. It involved calculation of various ratios like Asset Turnover Ratio, Debt Equity Ratio, Return on Investment Ratio, Capital Employed, Directors’ and Promoters’ Share report, Segment report etc.

• Internal Assessment : It is a careful evaluation of the internal control system in the organisation like the accuracy and completeness of the financial accounting, periodic reconciliation of the financial data with external confirmations, reliability of the IT solutions adopted by the company, clarity in the roles and responsibilities of the employees, Inventory management etc.

In my organisation, Internal Auditors are appointed that constantly keep a check on the on-field obstructions faced by the Collection officers, challenges faced in proper record keeping in view of the ever changing dynamics of the Finance Industry, effective inter- departmental coordination and an efficient relation-building with collaborating banks, Creditors and other business partners.

• Determining Vision : It refers to the finalisation of a core ethical belief system by the top management which will govern the course of all future business objectives that’ll be undertaken and the action plans and procedures that’ll be adopted to achieve the same.

The same is communicated to all the employees, managers and directors of the company to shape the character and image of the organisation as a functional entity by way of Vision and Mission Statement.

In my organisation, a well drafted and duly authenticated Vision and Mission Statement is laid out in the Annual report.

We have clear policies with respect to credit score evaluation of the prospective customers, proper documentation, timely disbursement of funds, effective Cash Management and a sincerely dedicated orientation towards overall advancement of the financially weaker sections of society.

3% of the Annual turnover is also set aside every year to contribute to the Environment Protection projects as fulfillment of Corporate Social Responsibility.

• Determining Agenda : This step covers a strategic identification of the most fruitful projects out of the many profitable opportunities available in the market. This Agenda is supposed to be accomplished over a pre-determined timeline and should at all times be in consonance with the organisation’s Vision and Mission Statement.

For instance, my organisation has determined to cover 70% of the local customer base and grow into a 4 billion dollar establishment from the current 2 billion dollar mark in the span of next 12 months.

• Planning and Implementation :This step requires a thorough planning and documentation of the course of actions that would be followed over the given span of time towards succcessful accomplishment of objectives.The suitable procedures and policies are laid down. These policies and procedures are cracked down into separate smaller tasks and assigned to well trained and suitably skilled work force.

In my organisation, there is a properly identified process of customer selection, funds disbusrement, instalment collection and loan closure. The branches are required under a set protocol to deposit all the collections in the bank Account of the Head Office by day end.

• Review : The policies and procedures are periodically revised in the light of new challenges and changes in political and economic structure. This ensures a focussed and substantive approach towards goals.