Strategic

management

Prepared by : Mahmoud Mohamed Ismail

CEO business school
ID number : 69745-2721
Task 1 A
Mission statement
 The mission statement of the organization is to answer the question of what is the
organization doing now in the context of achieving its vision, the products, the
geographical area in which this product or service is provided, and the type of
customer is targeting.
 These are the main points in formulating the mission of the organization as well as
the technology used in the company and its competitive advantage that provides it
with sustainability in the market
 Also, the company’s values and ethics are important to be formulated within the
mission of the organization, as well as their interest in their employees and their
concern for the environment
Vision statement
 The vision of the organization is an answer to the question of what do they want
to be or what they dream of ,What does the organization wish to achieve
 There is a close relationship between the vision statement and the mission
statement, the vision is a static mental image of what you want to achieve, while
the mission is a dynamic process of how to achieve the vision
Strategy and action plan

 Strategy How to achieve something

 Meaning how will you use your mission to achieve your vision
 Then you will have a goal, which is the cornerstone for implementing the
strategy
 then you put for this goal a value calculated with a number and a specific time
for its achievement, which called objectives
 Finally action plan It is a detailed plan to reach this goal, which will achieve the
success of the strategy that aims to achieve the vision of the organization

example
 vision : to be the market leader in baby milk formula in Saudi Arabia
 mission: promoting and selling baby milk formula with high capabilities and
competencies
 strategy: direct contact with the mothers
 goal: increase market share
 Objective : increase market share by 5% on the next two years
 action plane : marketing department will create and implement plan to gain the
phone numbers of mothers from Health care centers and maternity hospitals
then contact with them with our call center by pediatricians

B/
 External factors The impact on the industry

Political, legal and Countries that suffer from wars will have a negative impact on
governmental organizations and companies

Social, cultural and In baby milk industry

environmental and The more increase the number of birth the more increase consumers
demographic

Economical If value of the dollar very high with comparing by local currency the cost
of supply would br very high
Technological Technology today has become present in many forms that cannot be
dispensed with, as it has contributed to facilitating communication and
has contributed to creating new spaces that did not exist, such as the
online markets that grew during the Corona pandemic.

Competitive Bargaining power of supplier could control the industry and the
Customers market
Product Also distributer if they have bargaining power
Supplier
Distributer

 changes in the external environment affect organizational strategy

 As bargaining power of supplier will lead to backward integration
 for example , the strategy for baby milk formula company is horizontal
integration and because of increase cost of raw material the company changed
its strategy to backward
integration
 c/
stake holders
 Stakeholders are those who have an interest in the company, whether they
effect or affected by the company's activities

 Internal stake holders as shareholders and employees

 External stake holders as suppliers and government

Stake holders expectations How they influence the organization

Government Pay taxes can modify regulations and laws

pumping currency into the
country

Customers High quality They may change their buying habits

Low price

Suppliers Maximize selling to maximize They can change their industry and
profitability distribution channels

Share holders Increase profits They can sell the stocks and get out any
time

Employees High salary The quality of their performance

Career path way determines the success or failure of the
organization

Communities Sustain environment Industries that cause environmental

Social responsibility pollutants will not be acceptable in
residential areas
Task2
A/
Vesta Mission

 We are a manufacture and promote for various product within

(3) Arab Gulf States with high quality and their response to the
needs of the Saudi market, including
 (2) Cosmetics - insecticides - medical supplies - infant formula
 We have been famous in Arab Gulf States market by infant
formulas for thirty years. We have pledged to serve the largest
number of (1)mothers in providing safe nutrition for their
children and (7) providing them with medical advices and
guidance by our call center with pediatricians and that is our
competitive advantage
 (6) We believe in the importance of breast milk as the best
start for the infant. (8) We are committed to supporting and
promoting breastfeeding. When mothers cannot or decide not
to breastfeed, we provide safe and high quality nutrition.
components 1 customer 2 products 3 markets 4 technology 5 profitability

availability yes yes yes no no

Components 6 philosophy 7 Self concept 8 Public image 9 employees

availability yes yes yes no

Comment
 Statement lacks 3 components
Technology , profitability and concerning of employees
I felt some misunderstanding about their customers ,mothers for infant formula ,then what
about their other products
Vision
 To be the market leader for nutrition formula around the world
Comment
Clear , short , future oriented and challenging

Merit
 Vesta corporate strategy is un related diversification and market development
 Vesta business strategy is cost leader ship
 Vesta owns different production lines Cosmetics, pesticides and baby formula
 Having this diversity in Vesta's products supports its diversification strategy.
 Vesta Mission has shown a special interest in infant formula as well. Vesta Mission
supports this as it aspires to be the market leader around the world in this industry.
 Vesta follows an expansion strategy, which is evident in their presence in several
countries, namely the Gulf Cooperation Council countries, Saudi Arabia, the Emirates,
Bahrain and others, which supports Market Development Strategy
 While vesta Mission demonstrates the high quality of all its products but This is
inconsistent with Vesta's business strategy
distinction
 Saudi culture supports artificial milk formulas
 Also, the annual increase in population by 7% supports this industry
 This growth rate also creates the opportunity for more products to be available in the
Saudi market
 Competition in the milk industry in the Saudi market is strong and the choice of Vista
Business Model (cost leader ship) is a good choice, especially since there are no
noticeable differences between the more expensive competitors
 While the rest of Vista products do not find much place in the needs of the Saudi
citizen who is looking for quality
 Foreign workers support such cheap products in price
 new government legislation increases the number of the Saudi workforce within
private institutions, which has forced many companies to give up part of the foreign
workforce
 This gradually led to a decrease in the number of foreigners inside the Kingdom, and
consequently, the business became a strategic business for Vista that does not fit the
current situation
 Task4 A/
by using swat analysis

Strength Weakness
1-intensive financial resources 1- delay of supply
2-best marketing team 2-week brand
3-consumer data base

Opportunities So strategies W2O3 market penetration

1-Saudi culture support baby milk S2O1&2 market penetration W1O2backward integration
formula then Brest feeding S3O1 direct contact with the mothers
2- Population increase
3- few company offered low
price baby milk formula
Threats S1T1 launch advertising campaign
1-new entrant S2T2 backward integration
2- increase power of supplier S2T3 forward integration
3- increase power of distributer
b/
QSPM
 It is a tool and technique used to evaluate alternative strategies and put a rating for
each potential strategy
 In strategic analysis, the inputs are EFE matrix, IFE matrix, CPM
 After that, the strategies can be formulated using one of the tools used in the
analysis, such as SWAT Analysis And space matrix, BCG, and others
 Then comes the role of QSPM as one of the most important tools for choosing
between alternative strategies

 Market Forward Backward
pentation integration integration

Key factors weight as tas as tas As Tas

Opportunities 0.1 3 0.3 1 0.1 2 0.2

1-Saudi culture support baby milk formula 0.09 2 0.18 2 0.18 3 0.27
than Brest feeding 0.07 2 0.14 2 0.14 3 0.21
2- Population increase
3- few company offered low price
baby milk formula

Threats 0.08 4 0.32 1 0.08 1 0.08

4 -new entrant 0.1 1 0.1 1 0.1 4 0.4
5 - increase power of supplier 0.1 1 0.1 4 0.4 1 0.1
6 - increase power of distributer

Strength 0.1 4 0.4 4 0.4 4 0.4

7-intensive financial resources 0.1 4 0.4 1 0.1 3 0.3
8-best marketing team 0.07 4 0.03 1 0.07 2 0.14
9-consumer data base

Weakness 0.1 1 0.1 1 0.1 4 0.4

10- delay of supply 0.09 4 0.36 2 0.18 1 0.09
11-week brand

Total 2.43 1.85 2.59

 So back word integration the best strategic decision for this situation according to
QPSM tool
Task5
A/

create vision and mission for the organization

 The vision of the organization is an answer to the question of what do they want the
to be or what they dream of ,What does the organization wish to achieve
 The mission of the organization is to answer the question of what is the organization
doing now in the context of achieving its vision, the products, the geographical area
in which this product or service is provided, and the type of customer is targeting.
These are the main points in formulating the mission of the organization as well as the
technology used in the company and its competitive advantage that provides it with
sustainability in the market
Also, the company’s values and ethics are important to be formulated within the mission of
the organization, as well as their interest in their employees and their concern for the
environment
scanning analyzing environment internally and externally
 Using tools and techniques for analyzing the environment
 Internal environment : Determining the strengths and weaknesses within the
organization through one of the tools used, such as the IFE matrix
 External environment : analyze micro an macro environment by common tools . Pestl
for macro environment and porterfife for micro environment
Long term objective
  Setting long-term goals for the organization to achieve the organization's vision
 There are two types of goals
 Strategic goals such as increasing market share 10%
 and financial goals such as increasing profitability by 20%
Generate , evaluate , select strategy
 Analyze input data from internal and external environment by suitable analyzing tool
such swat analysis to formulate alternative strategies
 then to take decision and to choose the best strategy that will suite the situation by
suitable tool as QSPM
implement strategies management issues
 create policy that supports the strategic plan and regulates the behavior of the
organization that ensures the achievement of the organization's strategic goals
within the framework of achieving the vision
Implement strategies
 Coordination between all functions
 for example , If the goal is to increase the market share by 10%, this means that
the marketing team will create advertising campaigns at a certain level
 Which will require a budget provided by the financial department of the
company
 This means that a certain number of units is required to be sold by the sales
team, and so on
Finally
Measure and evaluate performance
 Regularly collect data and information to monitor how the programs, policy and
strategy are working
 knowing the percentage of completion according to the specified timetable to
reach the goal
B/

Stake holders How they example

influence strategy

Government New legislation and The decision of the Saudi government to increase the proportion
rules of Saudi workers in private sector companies led to the dismissal
of a large part of foreign workers who are interested in products
with cheap prices.
This will force companies to improve the quality of products to
meet the needs of the new market

Customers Required quality and The quality that the consumer demands In the UAE market, the
form of service consumer demands high quality, which drives the competing
companies in this market to follow differentiation strategy

Suppliers Bargaining power of Increasing the strength of the supplier may change the company's
supplier strategy from a market penetration to a backward integration

Share holders financing activities share Holders decided to one of the electronic devices
companies to modify the activity of the industry to include the
manufacture of computers and phones, as they are the owners of
the company, and this industry is growing

Employees Their capabilities and If a high-quality marketing team is available, it will allow the
competence company to run strong advertising campaigns and will increase
the success of market penetration strategy

Communities Environmental Laws Industries that cause environmental pollutants will not be
Social responsibility acceptable in residential areas

C/
 Work shop for stakeholders :It requires a high degree of involve and engagement
of participants
 Web based resources : Does not require a high degree of involvement and
involvement of participants
 Journal publications : requires a high degree of involvement and passive
engagement
 conference attendance : it needs high degree of involvement and
 Physical documents : Does not requires a high degree of involvement and
passive engagement