Assignment 2 : Paper Review

Title:

Defining the Right Strategy: A Strategic Chain Management Approach

  Base on the article which was given by the lecturer the most academic models on strategic planning are either too sophisticated or unfocused. So the article encompasses and demonstrates the simplicity of applying forcefield system model, a management concept that is prudent and yet pragmatic, to arrive at the right strategy. Firstly what is strategic planning? As we understood Strategic planning is more than ensuring our association will remain financially sound and be able to maintain its reserves—it’s projecting where your association expects to be in five, ten, or fifteen years—and how your association will get there. It is a systematic planning process involving a number of steps that identify the current status of the association, including its mission, vision for the future, operating values, needs (strengths, weaknesses, opportunities, and threats), goals, prioritized actions and strategies, action plans, and monitoring plans. So strategic planning that clearly defines objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track.
   Then we have to discuss what is strategic management chain approach? Supply chain strategies require a total systems view of the linkages in the chain that work together efficiently to create customer satisfaction at the end point of delivery to the consumer. As a consequence costs must be lowered throughout the chain by driving out unnecessary costs and focusing attention on adding value. Throughput efficiency must be increased, bottlenecks removed and performance measurement must focus on total systems efficiency and equitable reward distribution to those in the supply chain adding value. The supply chain system must be responsive to customer requirements.
   While a business must continually adapt to its competitive environment, there are certain core ideals that remain relatively steady and provide guidance in the process of strategic decision-making. These unchanging ideals form the business vision and are expressed in the company mission statement.
   From that paper we can tell that there are three-tiered models is based in traditional oraganizational planning and can be used in different areas. As shown below:

figure1

   

   So as we see and understand from the paper every company uses this structure for planning. At the top of our planning diagram is Mission. Actually, another step called Vision is above this, but we will have more to say about vision statements later. For now, the top of our planning pyramid is our mission statement. This is the most important step, without which the rest of the structure is random at best and meaningless at worst. For this reason, it is also dangerous to use a packaged mission statement or to copy someone else’s mission statement. Developing naturally out of the company mission are its goals. Goals are broad areas of mission accomplishment and constitute the strategic level of planning.

   When the company starts strategic planning it makes it on three interrelated levels: Corporate, Business, and Market levels.

  The following figure is taken from another paper in order to compare with the paper given to us:

figure2

   We can see from the figure that the author classified the market under functional strategies. So the definition here is much more general from the paper given to us and we can understand the concept anyway. The figure is valid to any company around the world. Every company will follow these levels.

Generic Forcefield Systems Planning Concept:

  
   The author here brought some new idea which is generic forcefield systems planning concept in order to simplify the strategic planning process as the same conceptual framework is applicable to all levels of strategies.

   This figure explains the idea:

figure3

   The forcefield strategic planning concept is a pragmatic framework which forces the corporate strategic, the business strategic and the marketing strategic to work in tandem of synergy. This means that all the fore mentioned levels are included in this concept because they are interrelated. 
      The concept of synergy is improving overall efficiency and effectiveness by exploiting synergies across businesses and product markets. So when we talk about this concept we have to talk about it separately, each part is for each level. In this paper and based on the way the author explained in his paper we will revise the paper based on our company “SHAAM” vision and mission.

Corporate Forcefield Systems Model:

  

   For each level we have to summarize the followings:
- Situational analysis.
- Strategy.
- Goals.

   So the best way is using the diagrams as appeared in the paper in which we are doing revision. The figure3 is the key map for the following diagrams. The diagram is with respect to our company “SHAAM”.

figure4

    So our corporate aims to manufacture a high quality steel doors which satisfy the demand for doors in constructions around the world specially in Malaysia and Middle-East because the contributors for out companies come from these places and they want to success in their region.

Business Forcefield Systems Model:

    Here we attach its respective diagram for our company “SHAAM”.

figure5

    

   At this level we need to develop the design so it fits the desire of the customer because there are different architectural designs and styles of building around the world so we want to design base on the costumer need. So the door appearance will be suitable to the building in which it will be installed in.

   So our position here is to manufacture doors that can fit different types of building like schools, factories, homes, palaces, and etc. These steel doors must have mechanical properties that are suitable for the environment in which we are going to sell the doors.

Market Forcefield Systems Model:

   Here also we will put the respective diagram for our respective company “SHAAM”.

figure6

  Here we need to maintain our spirit in finding new solutions in order to develop our product by engineering researches, improving the worker skills, and strong marketing in order to achieve out goal here which is to find strong market in Middle-East and Malaysia in order to be competitive with others.

Conclusion

   In conclusion Strategic planning is the cornerstone of every common-interest community.Without strategic planning, the community will never know where it is going—much less know if it ever got there. An important concept of strategic planning is an understanding that in order for the community to flourish, everyone needs to work to ensure the team’s goals are met. Team members include all association homeowners, the board of directors, professional management—whether onsite or through a management company—and various service professionals such as accountants and reserve professionals. This team needs to work as a collective body to be successful. Part of the team concept is the establishment of roles for the team players. Teams usually perform poorly if everyone or no one is trying to be the quarterback. Supply chain management operates at three levels; strategic, tactical and operational. At the strategic level, company management makes high level strategic supply chain decisions that are relevant to whole organization. The decisions that are made with regards to the supply chain should reflect the overall corporate strategy that the organization is following. The strategic supply chain processes that management has to decide upon will cover the breadth of the supply chain.

   At the end of the day company has to identify the customers for its products and services. When company management makes strategic decisions on the products to manufacture, they need to then identify the key customer segments where company marketing and advertising will be targeted. Strategic decisions determine the overall direction of company’s supply chain. They should be made in conjunction with the companies overall objectives and not biased towards any particular product or regional location. These high level decisions can be refined, as required, to the specific needs of the company at the lower levels which allow for tactical and operational supply chain decisions to be made. The author follow Pareto Rule 80/20. The 80/20 Rule means that in anything a few (20 percent) are vital and many(80 percent) are trivial. In Pareto's case it meant 20 percent of the people owned 80 percent of the wealth. In Juran's initial work he identified 20 percent of the defects causing 80 percent of the problems. Project Managers know that 20 percent of the work (the first 10 percent and the last 10 percent) consume 80 percent of your time and resources. You can apply the 80/20 Rule to almost anything, from the science of management to the physical world. And this rule we used in our subject “Quality Control” and it is related to the strategy of the company as well.