By: Ali Bayani Kooshan Gholami Mehdi Farimani

 Rest area chain  Study, design, construct and operate rest areas across Iran  More than 5000 employees  More than 10 rest areas  Main goal of the company is profitability

 The strategy planning Objectives setting Strategic programming budgeting  The monitoring, control and learning  The incentives and staffing system

 Determine a strategic direction for the firm  No differentiating between objects and goals  Consolidate with the strategic intent in long-run  More enduring challenge

 Top management:  The main office in Tehran  Divisions:  Each of rest areas is an independent division  Business units  Each profitable elements in any division  Restaurant  Gas station  Motel  Functions  Accounting  Procurement  Storing  Cleaning the environment

 Vision of top management

 Forecast on key environmental factors  Exchange rates  Inflation  Economic factors

 Negotiation  Divisions  Business units  Top-down model  Subordinate invitation

 Negotiation  Acceptance  Check consistency  resources  Modification

 Functional departments  Supporting role  Not having profit or growth responsibility  Their goals will be decided in the second step  Inviting key functional managers in object setting step

 Evaluation on an overall basis  No Judge in isolation  Fit with the rest of the portfolio  Competing investment opportunities

 Develops the strategic objectives  Define the cross-functional programs  Long-run financial plan  overlays both the expenditures and revenues  funded the firm’s internally generated resources or externally financed resources

 Two purpose:  Forge an agreement between divisional,business unit and functional managers  Deepen the involvement of functional managers

 Start with a communication from top management  Identifying program alternatives by BU and functional managers in each division  Examples of strategic programs:  Increasing market share for an existing product  Introducing a new product  Launching a join marketing campaign for a family of products

 A key challenge for divisional and Business unit managers: Deepen the involvement of functional managers :  Different professional cultures in functions  Day to day functional activities

 Synergy promotion in firms: 1. Economy of scale  R&D  Procurement  Production  distribution 2. Economy of scope 1. Development of a common trademark 2. Development of complementary product or services 3. Common regional service organization

Corporate level:  Estimate the needed resources  Reassessing the goals and their supporting strategies  Modifying the programs  Communicate the approves strategic programs to the division business units and functions

 Strategic budgets:  identifying the contributions that firm’s functional department will be expected to make  Operating budgets:  allocation of resources to financial departments

 Allocation of firm’s resources  Human resource  Technological resources  Financial resources  Influence of allocations(operational budgets) on strategic budgeting

 Strategic budget+ operational budget  Sent to top management for approval  Strategy implementation

 Emphasis on budget and schedules  These programs are validated periodically

 Reward  Key managerial positions

T h a n k s f o r y o u r a t t e n t i o n ; )