1. CORPORATE STRATEGY

2. What is strategy? Strategy is a rule for making decisions under conditions of partial ignorance. Strategy refers to the formulation of basic organisational missions, purpose and objectives, policies and programmes to achieve the overall objective of the organisation. Strategy is a broad based formular for how business is going to compete, what its goals should be, and what policies will be needed to carry out these goals. The essence of formulating competitive strategy is relating a company to its envirionment (Porter(1980) competitive strategy.

3. Definitions of Strategy Strategy is the pattern or plan that integrates an organisation’s major goals, policies and action sequences into a cohesive whole Strategy is the pattern of resource allocation made throughout an organisation. These encapsulate both desired goals and beliefs about what are acceptable and, most critically, unacceptable means for achieving them.

4. Strategic decisions There are concerned with the following: 1.The scope of an organisation’s activities 2.The matching of an organisation’s activities to its environment 3.The matching of an organisation’s activities to its resource capability 4.The allocation and reallocation of major resources in an organisation 5.The values, expectations and goals of those influencing strategy 6.The direction in which an organisation will move in the long term 7.Implications for change throughout the organisation.

5. PLANNING (BUSINESS) WHAT IS PLANNING? It is the process/procedure or steps the business passes through before achieving its objectives. Planning in organisations is a process of creating and maintaining the mission, objectives and aims of the organisation. A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organisation or team attempting to reach those goals.

6. WHY IS BUSINESS PLANNING IMPORTANT? In order to achieve the objectives business have to plan. To avoid market failure To eliminate or reduce risk To identify any weaknesses and attempting solution to those weaknesses. It helps management to clarify, focus, and research their business or project development and prospects. Planning provides a considered and logical framework within which a business can develop and pursue business strategies over the next three or five years. Planning offers a benchmark against which actual performance can be measured and reviewed. It serves like a road map for the organisation. It guides the organisation In achieving its goals, objectives, mission and vision.

7. BUSINESS PLANNING - IMPORTANCE A plan can play a vital role in helping to avoid mistakes or recognise hidden opportunities. Preparing a satisfactory plan of the organisation is necessary. The planning process enables management to understand more clearly what they want to achieve, and how and when they can do it. A well prepared business plan demonstrates that the managers know the business and that they have thought through its development in terms of products, management, finances, and most importantly, markets and competition. Planning helps in forecasting the future, makes the future visible to some extent. It bridges between where we are and where we want to go. Planning is looking ahead.

8. The Contents of a Business Plan THE BUSINESS MISSION What is a business mission ( mission statement)? A business mission is a statement of the overall purpose of existence. It clearly states the following What business are we in? What are our products? Who are our customers? What do we want to achieve? How do we achieve it? What resources do we need in order to achieve it? When are we going to achieve it? How long can we take to achieve it?

9. Business Mission The Business Mission defines the fundamental purpose of an organisation or an enterprise, basically describing why it exists. The business mission is part of business planning. In order to plan you need to know what you want to achieve ( the mission).

10. COMPONENTS OF A BUSINESS MISSION The type of business you are in: e.g. Cosmetic, Beverage, Fashion, Electronics etc Objectives or purpose Stakeholders: customers, employees, society, suppliers, distributors etc When you want to achieve the mission( time factor) How long you think it will take to achieve the mission(duration) Resources

11. WHY IS BUSINESS MISSION IMPORTANT? THE MISSION STATEMENT OF DEBENHAMS: We will be the leading countrywide store, the first choice for fashion and home furnishings for middle and upper income customers, characterised by our: Visual excitement and easy to shop environment Fashion authority Dominance in the most wanted merchandise categories Above average quality and value for money Merchandise organised by end use, activity or emerging trend. Customer dedication We will produce above average profits for Department Stores to meet Group financial objectives. We will develop an organisational environment which will attract, retain, develop and motivate high calibre staff, dedicated to the implementation of our mission.

12. CORPORATE STRATEGY EXAMPLES OF MISSION STATEMENTS

13. THE MISSION STATEMENT OF SAINSBURY: To discharge the responsibility as leaders in our trade by acting with complete integrity, by carrying out our work to the highest standards, and by contributing to the public good and to the quality of life in the community. To provide unrivalled value to our customers in the quality of the goods we sell, in the competitiveness of our prices and in the range of choice we offer. In our stores, to achieve the highest standards of cleanliness and hygiene, efficiency of operation, convenience and customer service, and thereby create as attractive and friendly a shopping environment as possible. To offer our staff outstanding opportunities in terms of personal career development and in remuneration relative to other campaigns in the same market, practising always a concern for the welfare of every individual. To generate sufficient profit to finance continual improvement and growth of the business whilst providing our shareholders with an excellent return on their investment.

14. THE MISSION STATEMENT OF MARKS AND SPENCER: …………..a commitment to putting the customer first at all times.To this end we are determined to sell only merchandise of the highest quality at outstanding values. We are determined to offer the highest standard of customer care in an attractive shopping environment and aim to improve standards continually throughout our operations using the latest technology. We establish mutually rewarding, long- term partnerships with our suppliers, developing overseas sources to serve our expanding international business, at the same time maintaining support for our British supply base. We aim to minimise the environmental impact of our activities. We nurture good human relations with staff, customers and the community, and ensure staff and shareholders share in our success.

15. ATLANTA WEB PRINTERS, INC... VISION AND MISSION STATEMENTS Vision Statement: To be the first choice in the printed communications business. The first choice is the best choice, and being the best is what Atlanta Web pledges to work hard at being-------every day! Mission Statement: To make our clients feel welcome, appreciated and worthy of our best efforts in everything we do ----each and every day To be recognised as an exceptional leader in our industry and community To conduct all our relationships with an emphasis on long-term mutual success and satisfactions, rather than short-term gain To earn the trust and respect of all we work with as being a company of honesty, integrity, and responsibility To provide an environment of positive attitude and action to accomplish our vision, by increasing positive feedback and recognition at all levels of the company. To train and motivate our employees and to develop cooperation and communication at all levels. To use our resources, knowledge, and experience to create win/win relationships for our clients, employees, suppliers, and shareholders in terms of growing compensation, service, and value.

16. IMPORTANCE OF A MISSION STATEMENT It can motivate staff to work hard and also attract more customers depending on how good the mission statement is. The organisation can be more popular among stakeholders because of the mission statement. The setting of mission statements helps companies to allocate resources easily It helps in strategic planning Mission is important because it forces firms to carry out a SWOT analysis about their firms in order to meet up with challenges. A mission is a road map in achieving the company’s goals The setting of mission statement helps companies to know where there are and where there are going to. It can make companies to come out with important modifications. Mission statement is a key to success in business. The setting of mission statements helps the company in improving on the quality levels of its products.

17. THE INFLUENCE ON A MISSION STATEMENT The organisation’s history, performance and patterns of ownership managerial values and expectations the environment resource availability the existence of any distinctive competences

18. Assignment 1.Formulate a mission statement for a small retail outlet that’s just entering the UK market. 2.What can make a Strategic business plan to fail. 3.Do all businesses need planning? What’s your opinion on this?. 4.You have been approached by Tesco management because they recognise the fact that you are studying Corporate Strategy, to explain how they can carry out Strategic Business Planning. What advise will you give Tesco. 5.Explain the factors that can affect strategic business plans.