Module 1:Introduction to strategic planning workshop

Transcription

1 Module 1:Introduction to strategic planning workshop Yi-Chih Yang Professor, Department of Shipping and Transportation Management, National Kaohsiung University of Science and Technology Allison James Lecture, Maritime and Logistics Management University of Tasmania (Lecture materials were amended based on 2003 cooperation teaching project between NKMU and AMC)

2 Outline 1.1 The nature of managing strategically 1.2 Definitions of strategic planning and management 1.3. Distinctive features of strategic management 1.4. The process of strategic management 1.5 Key industry success factors and performance

3 1.1 The nature of managing strategically Every organization operates on a Theory of the Business, that is a set of assumptions as to what its business is, what its objectives are, how it defines results, who its customers are, what the customers value and pay for. Strategy converts this Theory of the Business into performance. Its purpose is to enable an organization to achieve its desired results in an unpredictable environment.(drucker, 1999)

4 As a manager you have to be clear in your own mind about what has to be done so that you can set priorities, pass on directions and delegate tasks. Planning may even assist a manager to crystallise in his or her own mind what is required. Planning not only provides directions but also guidelines for decision-making. Making choices and setting priorities is much easier when you know where you are going.

5 1.2 Definitions of strategic planning and management Strategy is a set of related actions that managers take to increase their company s performance.(hill and Jones, 2004) Strategic management is that set of managerial decisions and actions that determines the longrun performance of a corporation. It Includes environmental scanning(both external and internal), strategy formulation(strategy or longrange planning), strategy implementation, and evaluation and control.(wheelen and Hunger, 2002)

6 environmental scanning

7 Strategic management can be defined as the art and science of formulating, implementation, and evaluation crossfunctional decisions that enable and organization to achieve its objectives. (David, 2003)

8 Benefit of strategic managmnet Clearer senses of strategic vision for the firm Sharper focus on what is strategically important Improved understanding of a rapidly changing environment

9 1.3 Distinctive features of strategic management 1. It deals with the long term. 2. It focuses on organisational effectiveness and efficiency. Effectiveness means to perform the right activity or operation at the right time. For a port to be effective it must possess a number of resources. This includes infrastructure (for example, berths, yards) and superstructure (for example, cargo handling equipment, warehousing, transit sheds) tugs and navigation aids etc.

10 Efficiency relates to how well an activity or operation is performed vis-à-vis competitors How efficient the port is depends on how it utilises these resources in order to achieve objectives. For example, how do you allocate cargo handling equipment to achieve a quick turnaround time; how do you arrange yard space to receive containers;

11 3. It requires a broad and comprehensive knowledge of the organisation and its environment. 4. Senior managers in consultation with many others make key strategic decisions. 5. It occurs at different organisational levels.

12 Copyright Houghton Mifflin Company. All Strategic Managers Corporate Level Managers Oversee the development of strategies for the whole organization The CEO is the principle general manager who consults with other senior executives General Managers Responsible for overall company, business unit, or divisional performance Functional Managers Responsible for supervising a particular task or operation e.g. marketing, operations, accounting, human resources 1 12

13 Levels of Strategic Management Copyright Houghton Mifflin Company. All 1 13

14 Yang Ming Line

15 The Five Steps of the Strategy Making Process Select the corporate vision, mission, and values and the major corporate goals and objectives. Analyze the external competitive environment to identify opportunities and threats. Analyze the organization s internal environment to identify its strengths and weaknesses. Select strategies that: Build on the organization s strengths and correct its weaknesses in order to take advantage of external opportunities and counter external threats Are consistent with organization s vision, mission, and values and major goals and objectives Are congruent and constitute a viable business model Copyright Houghton 1 15 Mifflin Implement Company. All the strategies.

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17 6. Strategic management efforts are often formalised into written strategic plans, but this need not always be the case. At the core of strategic management is the development and implementation of a plan of action that is aimed at ensuring an organisation s long term success. This plan of action is referred to as the strategic plan.

18 For instance, a manager, following recent trends in, say, ship design, shipping company size and environmental awareness, may decide to follow a gutfeeling strategy and may proceed to divest of investments in some sectors and pursue joint ventures in others.

19 1.4 The process of strategic management 1. the formulation of the organisation s mission statement, including a broad statement about its philosophy for the future; 2. discussion of the organisation s external environment, including both the competitive and general contextual factors, often referred to as an external analysis or as assessing external factors; 3. the development of a company profile that reflects internal conditions and capabilities, often called an internal analysis or assessing organisational factors;

20 4. the establishment of goals and objectives; 5. the selection of a set of strategies; 6. the implementation of the plan; and 7. the evaluation and control of the plan.

21 Formal strategic planning process 1. Select the corporate mission and major corporate goals 2. Analyze the organization's external competitive environment to identify opportunities and threats 3. Analyze the organization's internal operating environment to identify the organization's strengths and weakness

22 4. Select strategies that build on the origination's strengths and correct its weakness in order to take advantage of external opportunities and counter external threats. 5. Implement the strategy.

23 Wheelen and Hunger

24 The Five Steps of the Strategy Making Process 1. Select the corporate vision, mission, and values and the major corporate goals and objectives. 2. Analyze the external competitive environment to identify opportunities and threats. 3. Analyze the organization s internal environment to identify its strengths and weaknesses. Copyright Houghton Mifflin Company. All 1 24

25 3. Select strategies that: Build on the organization s strengths and correct its weaknesses in order to take advantage of external opportunities and counter external threats Are consistent with organization s vision, mission, and values and major goals and objectives Are congruent and constitute a viable business model 4. Implement the strategies.

26 Main Components of the Strategy- Making Process Source: C. W. L. Hill and G. R. Jones, Strategic management theory, Prentice Hall, 2002.

27 Processes for Improving Decision Making To bring out all the reasons that might make the proposal unacceptable Reveals problems with definitions, assumptions, & recommended courses of action Source: Source: C. W. L. Hill and G. R. Jones, Strategic management theory 1, 27 Prentice Hall, 2002.

28 Key strategic management concept An organisation s mission, objectives and strategy and approach to implementation are never final; evaluating performance, monitoring changes in the surrounding environment and making adjustments are normal and necessary parts of the strategic management process

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30 1.5 Key industry success factors and performance Key success factors is a management term for an element that is necessary for an organization or project to achieve its mission. Critical success factors are those few things that must go well to ensure success for a manager or an organization and, therefore, they represent those managerial or enterprise areas that must be given special and continual attention to bring about high performance.

31 CSFs include issues vital to an organization's current operating activities and to its future success.defining key success factors is, however, no easy task. In container trades, for instance, a port s ability for fast ship turn around times is critical to its success. A SWOT analysis will not only determine acceptable turn around times but also identify the reasons behind a particular port/terminal s speed (technology, well trained personnel, good industrial relations and so on).

32 Thank for your Attention

33 Welcome to Kaohsiung for leisure travel