Professional Documents
Culture Documents
P. GURU PRASAD
FACULTY
INC GUNTUR
Strategy and control
• Significant change in the business environment
may make it difficult for an organization to
survive in the market place.
Strategic change takes place the form of
• changing competitor moves,
• changing customer value-price perceptions,
• changing technology conditions,
• changing competitor profile , and
• changing supplier equations.
Vision and Mission
• The vision and mission statements
together provide the growth directions for
the organizations and control the
allocation of resources.
• For ex, a theater complex might define its
mission as exhibiting movies. On the other
hand a theater complex might define its
vision as providing entertainment.
Vision and Mission
• Entertainment is broader than movie exhibition
and will permit the organization to have business
activates like video game consoles and dining
outlets built into the premises of the complex
that exhibits movies.
• Such an organization , in order to grow, will not
engage in business activates like cement
manufacturing, retailing apparel, or selling
computers
Vision and Mission
• Dabur India the fourth largest FMCG company’s
vision is “ Dedicated to the health and well-being
of every household”
• Strategies that an organization adopts control its
strategic positioning, which translates into
customer perception of the organization’s
products and services. The resources and
strengths available with the organization and the
strategic gaps existing in the marketplace play a
key role in the choice of strategy that controls it
performance.
Critical success factors and
controls (CSF)
• The strategy crafted by an organization
aims at leveraging on its resources or
strengths and aligns them with the
environment in which it operates. Its ability
to do so depends on how well it addresses
its critical success factors.
• If the critical success factors are ignored,
then the organization will fail sooner or
later
Critical success factors and
controls (CSF)
• For example, in domino’s pizza, the critical
success factors are related to four broad areas,
customer’s preference fro pizza as a food item ,
its ability to prepare a pizza within a short time,
to deliver it within 30 minutes of recording the
order, and the store location.
• Since domino’s business model is based on
home delivery, the speed of preparing the pizza
and delivering it are the critical success fetors.
Critical success factors and
controls (CSF)
• Each industry will have a different set of
critical success factors. For instance, in
the case of grocery chains such as
reliance Fresh, one of the critical success
factors would be to source farm fresh
vegetables at low prices which will
translate into building sustainable supplier
relationships
Critical success factors and controls
• For each organization the critical success factors
may be different, depending on its mission and
strategic goals. The strategic controls ensure
that there is an alignment between the mission
and strategic goals.
• For example the mission of a television
manufacturing organization may be to be
recognized as a top end organization in its
industry. The strategic goal would be to
frequently introduce state of the art products in
the electronics industry. The critical success
factor for the organization would be the research
and development activity and speed to the
market with new versions
Critical success factors and
controls (CSF)
• Once the organization has decided on the
critical success factors , it becomes
necessary to track the activates that lead
to their achievements and to monitor the
performance of each of these activates.
• Performance measures are required for
the organization to know whether the
approach it is taking to address the critical
success factors
Performance Measurement
• Performance measures can be of three
types
• Performance indicators
• Key performance indicators
• Key result indicators
Performance indicators
• An organization may have a variety of
performance indicators indifferent areas.
• Marketing performance indicator
• HR performance indicator
• Production performance indicator
• Performance indicators may be lead
indicators or lag indicators
lead indicators or lag indicators