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information technology 9. process management 4. organizational design 10.What is Strategy?    Describes how it intends to create value for its shareholders. shareholder value 2. core capabilities 6. human resources 8. Actually based on observations. Basicly. innovation 7. strategic doctrines existed around: 1. learning . costumer management 3. and citizens. costumers. quality 5. there’re no two organizations thought about strategy in the same way.

 The Important elements of BSC framework: 1.Describing Strategy  The Balance Scorecard offers just such a framework for describing strategies for creating value. Learning and growth objectives  Link of those 4 elements chain of cause-andeffect relationship  The framework for value creation in publc-sector and nonprofit organizations is similar to the private sector framework. Internal processes 4. Financial performance 2. Customer value proposition 3. .

 provides a normative checklist for a strategy’s components and interrelationships.How the Organizations Creates Value  The four perspectives model provides a language that executive teams can use to discuss the direction and priorities of their enterprises as a series of causeand-effect linkages among objectives in the four Balanced Scorecard perspectives. .  provides the missing link between strategy formulation and strategy execution. STRATEGY MAP  is a visual representation of the cause-and-effect relationships among the components of an organizations’s strategy.

costumer management.Several Principles of The Strategy Map: Strategy balance contradictory forces  Strategy is based on a differentiated costumer value proposition  Value is created through internal business processes (operations management. organization capital)  . information capital. innovationm regulatoru and social)  Strategy consists of simultaneous complementary themes  Strategic alignment determines the value of intangible assests (human capital.


Creating value from intangible assets DIFFERS in several important ways from creating value tangible assets. Value is contextual: depends on its alignment with the strategy.  . Value creation is indirect: intangible assets seldom have a direct impact. Assets are bundled: intangible assets seldom create value by themselves. 2. 3. 4. Value is potential: intangible assets have potential value but not market value. Strategy  how an organization intends to create sustained value for its shareholders. its because: 1.

2. The Internal Process Perspective: identifies the critical few processes that are expected to have greatest impact on the strategy. Those four perspectives have objectives which linked together by cause-and-effect relationships is the structure which a strategy map is developed. 4. The Customer Perspective: the value proposition for targeted customers.   . The Framework of The Balaced Scorecard: 1. The Learning and Growth Perspective: identifies the intangible assets that are most important to the strategy (which one are required to support the value-creating internal processes). The Financial Perspective: the tangible outcomes of the strategy. 3. The Balanced Scorecard provides a framework to illustrate how strategy links intangible assets to value creating processes.

the reason for the organization’s existence. defines the mid-to-long-term goals of the organizations. Values  What’s important to us 3. Mission  Why we exist. The Balance Scorecard as A Step Continuum describes what value is and how it is created 1. 2. 4. Strategy  Our game plan. Balance Scorecard Measure and focus 7. Vision  What we want to be. Strategic Outcomes . Target and Initiatives What we need to do 8. Strategy Map Translate the strategy 6. 5.

So. Typically relate to profitability-measured. Productivity Strategy Company can reduce costs by lowering direct and indirect expenses and company can utilizing their financial and physical assets more efficiently. Two dimensions of a financial strategy are: Growth Strategy and Productivity Strategy. growth strategy is long-term dimension and productivity strategy is short-therm dimension. Growth Strategy Company can generate profitbale revenue growth by depending relationships with existing customers and by selling entirely new products. Actions to improve revenue growth generally take longer to create value than actions to improve productivity.FINANCIAL PERSPECTIVE       As the ultimate objective for profit-maximizing companies. .

 Produce products and services  Distribute and deliver products and services to Customers  Manage risk.OPERATIONS MANAGEMENT PROCESSES There are four ways organizations can improve their operations management processes to deliver goods and services:  Develop and sustain supplier relationships. .


Customer aqcuisition 4.>> Outcome from a well formulated and implemented strategy : 1. it can identify the objectives and measures for the value proporsition to offer. Customer satisfaction 2. Customer profitability 5. Account Share >> A company that can understand who its targeted customer are. Market Share 6. >> Value proporsition should communicate what the company expects to do for its customer better or differently than its competitors . Customer retention 3.


Innovation processes 4. Regulatory and Social processes .INTERNAL PERSPECTIVE : VALUE IS CREATED THROUGH INTERNAL BUSINESS PROCESSES >> Objective in the internal and learning and growth perspectives describe how the strategy will be accomplished. Operations management processes 2. Improve processes and reduce costs for the productivity component in the financial perspective >> Organization’s internal processes 4 clusters 1. Customer management processes 3. >> Internal processes accomplish 2 vital components of an organization’s strategy : 1. Produce and deliver the value proposition for customers 2.

VALUE-CREATING PROCESSES There are a few processes that companies must focus on to deliver a differentiating value proposition and that are most critical for enhancing productivity and maintaining an organization’s franchise to operate. .

 . ● Acquire customers. ● Grow relationships with customers. ● Retain customers.CUSTOMER MANAGEMENT PROCESSES Customer management must: ● Select customers.

 They set strategic priorities for process enhancements.  They identify entirely new processes that are critical for achieving strategic objectives.Strategy maps can provide significant value to companies using other quality programs in these four ways: They provide explicit and testable causal linkages between strategy and reality.  .  They establish targets beyond existing best practices.

2.  . 4. Design and develop new products and services.INNOVATION PROCESSES Managing innovation should include four important processes: 1. Bring new products and services to market. Manage the research and development portfolio. 3. Identify opportunities for new products and services.

Employment practices. 3. Environment. Safety and health performance. 2.REGULATORY AND SOCIAL PROCESSES 1. 4. Community investment. .

STRATEGY IS A CONCEPT IN A CONTINUUM Strategy is one step in logical continuum that mmoves an organizaytion from high level mission statement to the work performent by frontline or backline employees.  Mission of organization is profides the starting point by defining why or how to make the organization exist  Vission of organization is provides the future picture of the organization’s direction and help everyone to understand why and how they should support the orgnization.  .

customer and employee understand what the company is and what it intends to achieve. . Mission and vission statement dset the goal and direction of organization that can help the stakeholder of company like shareholder.

Porters arrgues that strategy is selecting the set of activities in which an organization will excel to create the sustainable differences in marketplace .

Deepenning the relationship with excisting customer and produce th product is the example of financial strategy to generate profitable revenue rate The second dimension of financial strategy is productivity improvements.FINANCIAL STRATEGY    Basically financial strategy are simple. Company can reduce the direct and indirect expensse and company is utilizing their financial andphysical asset efficiently. . The company can make more money with selling more and apending less.