CORPORATE STRATEGY

DR. SATARUPA ROYCHOWDHURY

Vision & Mission
► A corporate vision statement is a declaration of what the organization hopes to achieve in the future.
It is a broad and inspirational statement that is intended to engender support from stakeholders. The
mission statement defines how the organization differentiates itself from other organizations in its
industry.
► Here are some examples of corporate vision and mission statements:
► Vision: To be the world's most customer-centric company, where customers can find and discover
anything they might want to buy online. (Amazon)
► Mission: To organize the world's information and make it universally accessible and useful. (Google)
► Vision: To be the most admired company in the world, where people are passionate to come to work
every day and always feel like they are being challenged and growing. (Apple)
► Mission: To make the world's best products, to leave the world better than we found it, and to make
people's lives better through our products and services. (Microsoft)
What makes a good corporate vision and mission statement?

A good corporate vision and mission statement should be:

► Clear and concise: The statement should be easy to understand and
remember.
► Inspirational: The statement should motivate and excite employees
and stakeholders.
► Differentiating: The statement should clearly differentiate the
organization from its competitors.
► Timeless: The statement should be timeless and not tied to any
specific time period.
Here are some tips on how to write a corporate vision and mission statement:

► Start by brainstorming a list of words and phrases that describe the organization's
values, goals, and aspirations.
► Once you have a list of words and phrases, start to craft the statement. Be sure to
use clear and concise language that is easy to understand.
► Once you have a draft of the statement, have it reviewed by other people in the
organization to get their feedback.
► Revise the statement as needed based on the feedback you receive.
► Once you are satisfied with the statement, finalize it and share it with the
organization.
Strategy
Balanced Scorecard
A balanced scorecard is a strategic planning and management system that helps organizations
translate their vision and strategy into a set of performance measures that provides a
comprehensive view of the organization. The balanced scorecard was developed by Drs.
Robert Kaplan and David Norton in the early 1990s.

The balanced scorecard has four perspectives:

► Financial: This perspective measures the organization's financial performance.
► Customer: This perspective measures how the organization is performing in terms of
customer satisfaction, customer loyalty, and customer retention.
► Internal business processes: This perspective measures the organization's efficiency and
effectiveness in its core business processes.
► Learning and growth: This perspective measures the organization's ability to learn and
grow, which is essential for long-term success.
For each perspective, the balanced scorecard identifies a set of key performance indicators
(KPIs) that measure the organization's performance in that area. The KPIs are typically linked
to the organization's goals and objectives.
► The balanced scorecard is a powerful tool for strategic planning and management. It helps
organizations to:
► Translate their vision and strategy into a set of performance measures.
► Align the organization's activities with its strategic goals.
► Communicate the organization's strategy to employees and stakeholders.
► Measure and track the organization's performance.
► Identify areas for improvement.

The balanced scorecard is not a one-size-fits-all solution. The specific KPIs and measures that
are used will vary depending on the organization's industry, size, and goals. However, the
balanced scorecard is a valuable tool for any organization that wants to improve its
performance and achieve its strategic goals.
Here are some of the benefits of using a balanced scorecard:
► Improved communication: The balanced scorecard helps to communicate the
organization's strategy to employees and stakeholders. This can help to ensure that
everyone is working towards the same goals.
► Improved alignment: The balanced scorecard helps to align the organization's activities
with its strategic goals. This can help to ensure that the organization is making the best
use of its resources.
► Improved decision-making: The balanced scorecard provides a framework for making
decisions that are aligned with the organization's strategy. This can help to improve the
organization's decision-making process.
► Improved performance: The balanced scorecard can help to improve the organization's
performance by providing a framework for measuring and tracking performance. This can
help the organization to identify areas for improvement and make necessary changes.
Here is an example of a balanced scorecard for a company that sells software:
This is just an example, and the specific KPIs and measures will vary depending on the
organization's industry, size, and goals. However, this example illustrates how the balanced
scorecard can be used to measure and track an organization's performance across four key
perspectives.

Here are some additional tips for creating a balanced scorecard:

► Start by defining the organization's vision and strategy.
► Identify the key performance indicators that will measure the organization's performance in
each perspective.
► Set targets for the key performance indicators.
► Identify the initiatives that will be used to achieve the targets.
► Communicate the balanced scorecard to employees and stakeholders.
► Monitor the balanced scorecard and make adjustments as needed.
Strategic Management Process
The strategic management process is a cyclical process that organizations use to set goals,
develop strategies, and implement and evaluate those strategies. The process typically
includes the following steps:
► Define the organization's vision and mission. The vision statement is a declaration of what
the organization hopes to achieve in the future. The mission statement defines how the
organization differentiates itself from other organizations in its industry.
► Conduct a SWOT analysis. A SWOT analysis is a tool that helps organizations identify
their strengths, weaknesses, opportunities, and threats.
► Set goals and objectives. Goals are broad statements of what the organization wants to
achieve. Objectives are specific, measurable, achievable, relevant, and time-bound goals
that are used to achieve the organization's goals.
► Develop strategies. Strategies are the plans that organizations use to achieve their goals.
There are many different types of strategies, including growth strategies, differentiation
strategies, and cost leadership strategies.
► Implement the strategies. Once the strategies have been developed, they need to be implemented.
This involves allocating resources, assigning tasks, and monitoring progress.
► Evaluate the strategies. The strategies need to be evaluated to ensure that they are achieving the
desired results. This involves collecting data, analyzing the data, and making adjustments as
needed.
The strategic management process is a continuous process. The organization needs to regularly review
its vision, mission, goals, objectives, strategies, and implementation plans to ensure that they are still
relevant and effective.
Here are some of the benefits of the strategic management process:
► It helps organizations to achieve their goals. By following the strategic management process,
organizations can identify their goals, develop plans to achieve those goals, and monitor their
progress.
► It helps organizations to be more competitive. By understanding their strengths, weaknesses,
opportunities, and threats, organizations can develop strategies that will help them to compete more
effectively in the marketplace.
► It helps organizations to be more efficient and effective. By allocating resources effectively and
monitoring progress, organizations can ensure that they are using their resources in the most
efficient and effective way possible.
► It helps organizations to be more adaptable. By regularly reviewing their vision, mission, goals,
objectives, strategies, and implementation plans, organizations can ensure that they are still relevant
and effective in a changing environment.
► There are three stages of the strategic management process which are as follows:-
► Strategy Formulation
► Strategy Implementation
► Strategy Evaluation
1. Strategic Formulation
The stages of the strategic management process start with strategic implementation. Business activities are executed by the
formulation of strategy which is referred to as Strategy Formulation.
The following elements are developed in the strategy formulation stage.
► Vision & Mission: Include the target of the business
► Strengths & Weaknesses: Strong & weak points of business
► Opportunities & Threats: Associated with the external business environment

Besides the above elements, long-term goals & objectives are also set in the strategy formulation. Alternative Strategies
are generated to accomplish long-term goals & particular strategy is selected to be pursued.
Following are some of the important considerations that should be followed for best strategy formulation.
► Resources allocation
► Businesses to enter or maintain
► Mergers or joint ventures
► Businesses to liquidate or divest
► Entering the foreign markets
► Business expansion
► Resistance of takeover
2. Strategy Implementation
Strategy Implementation is the second stage of the strategic management process, annual objectives
are established along with the devising of policies. Moreover, the employees of the organization are
motivated & resources are allocated to execute formulated strategies.

Strategy implementation further includes the following.

► Development of a culture that is supportive of the strategy
► Development of potential organizational culture
► Re-direction of the efforts of marketing
► Preparation of budgets
► Preparation & usage of information
► Connecting compensation of employees with the organizational performance
The stage of strategy implementation is also referred to as the action stage of strategic management.
The managers & employees are mobilized in the implementation phase so that the formulated
strategies are put into action.
The strategy implementation stage is the most difficult stage among all other stages of
strategic management. Personnel discipline, sacrifice & commitment are required in this stage
of strategy implementation.
The strategy that is formulated but not implemented lacks any useful purpose. Strategy
implementation is considered of utmost importance in the stages of the strategic management
process.

3. Strategy Evaluation
► Strategy evaluation is the last step of the stages of the strategic management process. The
final stage of the strategic management process is strategy evaluation. The managers must
have sufficient know-how about the problems and improper working of strategies.
► This task of the management is better accomplished through strategy evaluation which
provides needful information to the managers in this regard. Moreover forces of external &
internal environment changes with time therefore all the strategies also require
modifications.