Strategic plan part III
Strategic management involves manager’s implementation of plans that bring about sustainable competitive benefits. Implementation of techniques and frameworks has been developed in order to assist managers in (top quality, value-based) management, prism, Balance scorecard, performance matrix and more. These frameworks are developed so as to provide a better balance view between external and internal aspects, financial and non-financial measures. Strategic management and deployment of organizational resources so as to achieve and deliver organizational objectives is an essential role of the management and finance professionals.
The strategic plan defines the mission and vision of the company and applies performance measurements to ensure that the company’s goals have been achieved. By using A balance score card, this changes the organization’s strategic plan from being a passive active document to an organization of day to day basis. This framework provides performance measurements as well as helps planners to identify what to do, plan and take measures thereby enabling executives to execute their strategies.
Situation analysis is a phase in strategic plan that involves evaluation of internal and external environments as well as analysis on its competitors. Tools like SWOT analysis are used by firms to evaluate their competitor through the use of benchmarking their strengths and weaknesses as well as their level of performance. In Sony’s SWOT analysis, competition is an external force that influences its performance. When it comes to internal forces of the SWOT analysis, both tangible and intangible company resources are assessed. Some business core skills can be superior abilities within customer relationship or competent supply chain management. Situation analysis identifies SWOT of an organization and discloses a flawless picture of company’s situation within the market.
In this paper we will consider balance score card as the performance measurement framework for the Sony corporation. A Balance scored card is a set of measures that helps to formulate and plan in correlation to a company’s strategy as it links values with long term strategic goals. A balance score card includes a concise definition of the company’s strategy and vision. When Sony business performs strategic management process, it undergoes assessment, scrutinizing, strategic formulation execution and thorough valuation.
Sony is a leading manufacturer of products and services that satisfies customers’ requirements which is the vision and mission of the company. For Sony corporation, the vision and strategy are defined and conforms to customer satisfaction. Sony corporation is a dynamic and globalized business in which competition is extremely high between other companies that manufacture similar brands. After a successful situation analysis, long-term objectives are created to show goals that can improve a company’s competitive position. These objectives are the direction for either, business strategy, corporate strategy or international strategy level.
The vision and strategy of Sony is surrounded by quadrants of perspectives thus: financial, customer perspective, internal business processes and the organizational growth capacity. The four perspective divisions are as follows:
perspective 1: customer value perspective
in Sony corporation, this perspective aims at identifying strategic objectives that concern customer’s perspective. This perspective intends to retain customer base and achieve peak level of customer satisfaction. Sony business has great emphasis on customer focus and satisfaction. The two are the indicators of whether their customers are satisfied. Thus in case they are not satisfied they will go find where their needs are met. A poor performance in this perspective indicates future business decline despite the current situation reflecting good. In this metric of satisfaction development, customers should be considered in terms of the kind of customer and the process the organization is providing a product or service to them.
perspective 2: financial profitability
The financial growth strategy is driven by the increased customer value and franchise building to achieve operational distinction. Expansion of customer base can bring about lower unit cost while operational distinction contributes to a perfect customer’s buying experience. The customer’s perspective drives financial profitability growth objective (Kaplan & Norton, 2012). Accurate and Timely funding data is the priority when it comes to this perspective. Sony has implemented a corporate database and its processing is centralized and programmed. In addition, financial-related data for example the cost-benefit data and risk assessment are essential in this category.
Perspective 3: internal business process
The Metrics on this perspective acknowledges the managers on how well their business is running, as well as whether its products and services follow customer demands which are the mission. Value proposition is delivered to customer as it is the core business strategy connecting to Sony’s internal processes that improves outcomes with customers. This value preposition describes the unique mix of price, product, liaison and the image provided by the company. The value preposition defines the market segment of the targeted strategy as well as the way an organization differentiates itself from its competitors. The greatest value proposition should deliver the crucial target where the strategic themes of critical internship business processes and substructure it shall focus. This strategic map forces executive teams to clarify their understanding of the customer in the market place. For Sony corporation they epitomize the product leadership to understand the customer. In this strategy the product leadership tend to push its products of the un tried, unknown realm. Others tend to use customer intimacy and optional excellence model of strategies (Kaplan & Norton, 2012).
perspective 4: organizational capacity
This perspective incorporates self-improvements of cultural attitudes and individual employee training. Repository of knowledge is the main source of knowledge- worker organization while it has become essential for knowledge workers to continually learn due to rapid environmental and technological changes. This metrics should be aligned in order to guide managers in emphasizing training funds to help others. Moreover, learning and growth are the major foundation for a successful knowledge worker organization.
Performance measures & target strategies initiatives
Performance measures & target strategies initiatives
A Strategy map communicating tool are used to tell a stories on how value is created for an organization. This is shown in a logical, step-by-step connection between strategic objectives.
performance improvements in the strategic objectives from the organization capacity perspective allows the firm o to advance, its Internal Business Process Perspective Objectives in turn allows the organization to produce desirable results in the Financial and Customer perspectives.
Kaplan, R. S., & Norton, D. P. (n.d.). The strategy-focused organization: how balanced scorecard companies thrive in the new business environment. Boston, MA: Harvard Business School Press.