Strategic Management 2011

University Of Atlanta

Strategic Management:

Leads to Being Pioneers in Advancing the Economy & Community

MBA 639 Dynamics of Corporate Strategy

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Strategic Management 2011

TABLE OF CONTENT

Executive Summary .3 - 4 Company Overview...4 - 5 Vision & Mission & Values & Principles...............................................................5 - 6 SWOT Analysis Strength...6 Weakness..7 - 8 Opportunity....8 - 9 Threats)..9 -10

Marketing Segment.11 - 12 CONCLUSION.12 - 13 REFERENCES...............14

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Executive Summary
In the midst of this challenging and rapid changing business world, every organization strives to survive by creating some kind of competitive advantage over their business rivals. Some focus on making new product or improve their existence ones, other by providing better service or even by reducing the prices. In the end, each company tries to find its optimum business strategy that fits its market. Therefore, we could say that a business without strategy is a business without direction and a strategy without a competitive advantage is a business without a precondition of success. Managing strategically is to make decisions and implement strategies that allow an organization to develop and maintain competitive advantage, hence reaches its goals and objectives.

Strategic management is the method that deals with the intended and growing initiatives taken by top managers on behalf of stakeholders, involving utilization of resources, to enhance the performance of firms in their external environments. It entails specifying the organization's mission, vision and objectives, developing policies and plans which are designed to achieve these objectives, and then allocating resources to implement the policies and plans. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives (Wikipedia, 2011, para.1).

In this paper, we will look into MNC Organization current state and where it wants to go. Also, we will look at the companys strategic plan and we will Page 3

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perform an internal/external environmental scan, which we will include for that a SWOT analysis and focus on the marketing segment of this organization. To facilitate that we will address the strategic process of the four Ps of marketing.

Company Overview
MNC Organization is a regional profit-oriented company that has been operating for more than 50 years where it was established in the 1960's, MNC Group is now among the top leading commercial entities in the GCC region. In the 1960s, Kuwait was undergoing rapid growth and development. With fastpaced industrialization came the need for modern infrastructure. A resultant gap emerged between the growing demand for building materials and the limited supply capacities of existing producers.

MNC Group started out as a single company MNC Building Materials, committed to equalizing this supply and demand imbalance. Visionary management and total dedication to quality and customer satisfaction saw the company grow exponentially in size, reputation and product lines.

Firmly established as one of Kuwait's leading companies, MNC founder embarked on an ambitious diversification initiative. In 1981, MNC Electrical Materials was formed. After a brief period of consolidating its market position, the parent company took its diversification a step further, and in 1989 MNC wood Industries came into being. Page 4

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This was followed up by MNC Hardware in 1995 and MNC Engineering Consultants in 1996. Keeping pace with market developments, 1998 saw MNC Steel Industries and Building Construction Company start operations. In 2000 the group established MNC Plastics Industries and in 2001 MNC Transformers Electric Company followed by MNC Electronics in 2003. The company entered into joint ventures including MNC Holding Co. in 2006.

In order to increase diversification of revenue streams, the group also holds an equity stake in several affiliate ventures ranging from banks and petrochemical companies, to recycling and consumer retail operations.

Vision & Mission & Values & Principles

MNC Vision: Pioneers in advancing the economy & community

MNC Mission: Our mission is to be a leader in investments across an array of industries, committed to be among the top leading investors in all our chosen markets. We strive to be the partners of choice in ventures, independent or with major business groups. We endeavor to be the employer of choice for the best people. We are determined to create value for our shareholders. Page 5

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MNC Values & Principles The Life values of the founders MNC Company are what made the company grow from a small single activity establishment trading in building materials into one of the largest and fastest growing companies in the region. We strive to achieve our mission by living up to the common values that define our company culture: Trustworthiness We are committed, credible, transparent, and passionate. Innovation We encourage innovative ideas across all our products & services. Leadership We lead by example & empower our people. Community We strive to be an integral part of the societies & communities we service. Sustainability We have a passion to succeed and create value for all our stakeholders.

A Marketing Plan is critical in applying MNC company resources in the most effective way to sell to customers. Many companies are comfortable in developing their product/service package but some find the marketing task daunting and tackle it reluctantly. They may start with a SWOT analysis. They consider the Strengths and Weaknesses of their product/service versus the competition. What are the Opportunities? Where are the Threats? Page 6

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SWOT Analysis
Analyzing the environment and the company can assist the company in all of the other tasks of strategic management. For example, a firms managers should formulate strategic direction and specific strategies based on organizational strengths and weaknesses and in the context of the opportunities and threats found in its environment. In other word, SWOT analysis is a methodology of examining potential strategies derived from the synthesis of organizational strengths, weaknesses, opportunities and threats (SWOT). The partnering of the different elements and the extensive data collected as a result of the analysis can serve as a spark for roundtable discussions and refinement of current strategies or generation of new strategies.

Strengths Strengths describe the positive attributes, tangible and intangible, internal to MNC organization. They are within company control. What do they do well? What resources do they have? What advantages do they have over your competition? Strengths include the positive attributes of the people involved in the business, including their knowledge, backgrounds, education, credentials, contacts, reputations, or the skills they bring.

Strengths also include tangible assets such as available capital, equipment, credit, established customers, existing channels of distribution, Page 7

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copyrighted materials, patents, information and processing systems, and other valuable resources within the business. Strengths capture the positive aspects internal to MNC business that add value or offer them a competitive advantage. This is the company opportunity to remind itself of the value existing within their business.

Weaknesses Note the weaknesses within MNC business. Weaknesses are factors that are within the company control that detract from their ability to obtain or maintain a competitive edge. Which areas might they improve? Weaknesses might include lack of expertise, limited resources, lack of access to skills or technology, inferior service offerings, or the poor location of the business. These are factors that are under firm control, but for a variety of reasons, are in need of improvement to effectively accomplish their marketing objectives.

Weaknesses capture the negative aspects internal to the business that detract from the value they offer, or place them at a competitive disadvantage. These are areas they need to enhance in order to compete with their best competitor. The more accurately they identify their weaknesses, the more valuable the SWOT will be for their assessment.

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Opportunities Opportunities assess the external attractive factors that represent the reason for the business to exist and prosper. These are external to MNC. What opportunities exist in their market, or in the environment, from which they hope to benefit? These opportunities reflect the potential they can realize through implementing MNC marketing strategies.

Opportunities may be the result of market growth, lifestyle changes, resolution of problems associated with current situations, positive market perceptions about MNC business, or the ability to offer greater value that will create a demand for MNC services. If it is relevant to MNC business, they should place timeframes around the opportunities. Does it represent an ongoing opportunity, or is it a window of opportunity? How critical is MNC timing? Opportunities are external to MNC business. If they have identified opportunities that are internal to the organization and within MNC control, they will want to classify them as strengths.

Threats What factors are potential threats to MNC business? Threats include factors beyond MNC control that could place MNC marketing strategy, or the business itself, at risk. These are also external they have no control over them, but they may benefit by having contingency plans to address them if they should occur. Page 9

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A threat is a challenge created by an unfavorable trend or development that may lead to deteriorating revenues or profits. Competition existing or potential is always a threat. Other threats may include intolerable price increases by suppliers, governmental regulation, economic downturns, devastating media or press coverage, a shift in consumer behavior that reduces MNC sales, or the introduction of a new technology that may make MNC products, equipment, or services obsolete. What situations might threaten MNC marketing efforts? Get MNC worst fears on the table. Part of this list may be speculative in nature, and still add value to MNC SWOT analysis. It may be valuable to classify MNC threats according to their seriousness and probability of occurrence.

Measuring the effectiveness of the organizational strategy, it's extremely important to conduct a SWOT analysis to figure out the strengths, weaknesses, opportunities and threats both internal and external of the entity in business. This may require taking certain precautionary measures or even changing the entire strategy. In corporate strategy, specifically in MNC organization this following model in which strategic options are evaluated against three key success criteria should be established: Suitability (would it work?) Feasibility (can it be made to work?) Acceptability (will they work it?) Page 10

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Marketing Segment
MNC marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives. Consumers often call the marketing mix "the offer. MNC offer is controlled by the following variables often referred to as the four Ps in marketing: Product Price Place (Distribution) Promotion

By using variations of these four components they have the ability to reach multiple consumers within their target market. Creating a successful marketing mix for MNC that will increase their results often take experimenting and market research. The key is to not always depend on "one" mix always explore other avenues. The combining and coordination of these elements will be more effective than depending on one.

MNC must coordinate all elements so that the prospective consumer is not being sent mixed messages that can cause confusion. For instance make sure that if they have a practice that caters to a niche market that MNC product is geared towards the need of that market, MNC price is within the budget of that market, they are distribution their product or service where it will be seen by that Page 11

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market, and gear MNC promotion to solve the problems that they are encountering.

Conclusion
In the end, we can absorb that by establishing strategic management practices in MNC Company they will be able to achieve an even higher growth than their initial goal. In no other word, strategic management allows MNC to be more proactive than reactive in shaping its own future; it allows an organization to initiate and influence activities and thus to exert control over its own destiny. Business owners, chief executive officers, presidents and managers of many forprofit and non-profit organizations have recognized and realized the benefits of strategic management. Ultimately, the major benefit of strategic management has been to help organizations formulate better strategies through the use of the more systematic, logical and rational approach to strategic choice. In addition to that MNC Company will be able to realize the following benefits as a result for applying the mentioned strategic management tools and methods and are as follow: Financial Benefits: o Improvement in sales. o Improvement in profitability. o Improvement in productivity. Non-Financial Benefits: o Improved understanding of competitors strategies. Page 12

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o Enhanced awareness of threats. o Reduced resistance to change. o Enhanced problem-prevention capabilities. Customer/Member Benefits o Cost effectiveness yields better interest & deposit rates o Improved/increased customer service o Safety & soundness of deposits Board Benefits o Increased ability to make decisions that will assure long-term financial institution survival and growth o Increased ability to control long-range direction o Allows Board to focus on key strategic issues, as opposed to management problems Management Benefits o Allows management to evaluate future assumptions & alternatives o Management can look at the company in total rather than focusing on their individual responsibilities o Individuals in the credit union will strive harder to achieve objectives they help set o Improved planning eliminates ambiguity and enhances teamwork and culture

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Reference

Strategic Management from the Wikimedia Foundation, Inc web site [updated 07 March 2011, cited 11 March 2011]. Available from http://en.wikipedia.org/wiki/Strategic Management

SWOT Analysis from the Wikimedia Foundation, Inc web site [updated 07 March 2011, cited 11 March 2011]. Available from http://en.wikipedia.org/wiki/SWOT Analysis

SWOT Analysis from the Internet Center for MBA, Inc web site [updated 07 March 2011, cited 11 March 2011]. Available from http://www.netmba.com/strategy/swot

Albert Humphrey's tam model from the Business balls web site [updated 07 March 2011, cited 11 March 2011]. Available from http://www.businessballs.com/alberthumphreytam.htm

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