Crafting and Executing Strategy - Research Paper Example

? Crafting and Executing Strategy A strategic plan is very vital in operations of businesses. Mission and vision ments help a business to design appropriate strategic plan. This paper will develop an argument in support of the importance of the strategic plan. Mission and vision statements will be created and a clear articulation of their contribution to company’s success. Introduction It is argued that strategic planning is a roadmap that leads businesses into a specified destination, which sees the realization of their strategic goals (Goodstein, Nolan & Pfeiffer, 1993). In other words, strategic planning is a tool that defines the routes that businesses will take in the effort to get from the current position to where owners want it to go. In fact, it is argued that strategic planning is a procedure that fulfils the mission and vision of a company (Andersen, 2004). In order to be effective, strategic plan considers the internal and external environment surrounding the business. In this regard, it is true to argue that as a company grows and intends to achieve its strategic goals, the need for strategic planning becomes greater (Goodstein, Nolan & Pfeiffer, 1993). However, strategic planning does not just become effective without considering some factors. It is necessary for all stakeholders in the organization to clearly understand the direction and mission of the organization. Nevertheless, the mission and direction of the business should go hand in hand with market changes, which call for a business to strategically prepare for different market segments. In regard to Fed-EX Corp as a key player in the logistics industry, strategic planning would lead to more cost reduction as well as maintaining best prices (Long, 2004). It can also be argued that strategic planning in logistics business can act as a roadmap for economic and operational success. Additionally, strategic planning would act as a facilitator of efficient, flow of goods and information from company’s premise to consumption points (Moradi, 2012). This has an advantage of conforming to customers’ needs and satisfaction. Mission statement “Fed-EX Corp offers top quality logistic solutions to our customers based on expertise. Customers prefer our services based on quality and reliability” A company can not operate without a mission statement and expect to go far. A mission statement is vital in ensuring the success of a business. It not only set targets for businesses to attain its financial goals, but also enables businesses to build their corporate brand as they win the loyalty of customers through the provision of quality products and services (Goodstein, Nolan & Pfeiffer, 1993). For example, Fed-EX Corp mission statement would act as a corporate vision drive, motivate, unify and excite business into superior performance (Long, 2004). In order to offer top quality solutions to its customers, Fed-EX Corp would be motivated to work extra hard and work in unity in order to keep the fire burning. In fact, a mission statement provides a lighthouse that a company can look at whenever it looses track of itself. This is true because when a company looses sight, a mission statement can be referred to provide an insight of the company’s core competencies. In logistics business, Rushton, (2010) argued that a mission statement can facilitate greater returns on investment. Additionally, a measure of return on equity is argued to be more than double in companies that have written mission statement. Although it is hard to indicate the part of mission statement that brings success to a company, a combination of parts of a the mission statement can help a company prosper in different ways. For example, the statement should clearly establish the line of business the company is engaged in. This helps the company focus its efforts towards succeeding in that line of business. Vision statement “To build greater global logistic solutions through quality, integrity and profitability” Having established the mission statement, Fed-EX Corp should focus on how the mission should be accomplished. In this regard, a vision statement gives an overview of the future expectations of the company. A vision statement acts as an inspiration and a framework for all strategic planning of a company (Moradi, 2012). In other word, Fed-EX Corp should be in a position to say where it wants to go. This will enable Fed-EX Corp to articulate on its dreams and hopes. Although a strategic plan is built on the basis of the mission statement, a vision statement sets a direction for the strategic plan (Long, 2004). As the mission statement focuses on customer and clients’ needs, a vision statement focuses on the members of the organization and on the organization as whole and articulate on its potentials of fulfilling the mission statement. Key objectives of the company To continuously improve quality of our products and services To strategically reduce cost and maximize the net profit To continue raising the level of job satisfaction To satisfy customer service requirements in a timely manner To generate additional sales Quality improvement Total quality management is a very vital component in logistics business. If a company fails to keep the promise on timely delivery and supply of its products or services, it is likely that customers would not like to trade with that company (Rushton, 2010). It is also argued that a company that offers quality products and services creates customer loyalty, something that keeps the company surviving and thriving in a highly competitive market. Cost reduction and profit maximization It is apparent that a company that reduces its costs of operation is able to maximize its profits. In logistics, this would include total cost reduction in transportation, warehousing, and inventory maintenance (Farahani, 2011). When costs of operation are high, it implies that the profit margins will be low. Raising the level of job satisfaction It is argued that employees are one of the best primary assets an organization can ever have. Therefore, it is necessary for organizations to ensure they hire competent and result oriented employees in order to oversee efficient operations of the organization (Goodstein, Nolan & Pfeiffer, 1993). However, hiring competent employees is not enough; organizations should ensure that it has put in place all mechanisms that ensure employees growth. This should come in terms of using employee retention incentives and training. When a company has a proactive workforce, there is a high likelihood that the company will have top performance in all fields of operations. Customer service satisfaction In logistics business, Rushton, (2010) noted that customer satisfaction may include improvement of physical distribution activities and customer service improvement. However, the company should also pay attention to other specific issues that customers are sensitive in. Issues like timely delivery, reliability of inventory, careful handling of merchandise, and economy in operations, may tarnish the corporate band of the company to customers if they are not handled with care (Farahani, 2011). Generation of additional sales It is argued that a company can attract additional customers by offering quality services at a lower price. This means that if a company gets additional customers, the volume of sales increases thus increasing profit margins (Andersen, 2004). For example, if Fed-EX Corp decides to decentralize its warehousing operations or use economic and efficient modes of transportation, it is likely that it will achieve larger market share. Conclusion: Justification of the objectives in their support of mission and vision statements All the above objectives strategically focus on supporting Fed-EX Corp’s mission and vision statements. The first objective talks about improvement of quality of products and services. Since Fed-EX Corp’s mission focuses on the provision of quality logistic solutions, this objective perfectly supports the mission of the company. This goes in line with the objective of customer service satisfaction. If a company wants to provide quality products and services, it is apparent that the concept of customer service satisfaction is incorporated as well. It is also apparent that when a company has a mission of offering quality services and products, the issue of additional sales is not left behind. Since the provision of quality services would attract new customers, this objective supports the mission of the company. Reducing cost and maximizing profits is viewed as an objective that sustains the company in the market. Without profits, Fed-EX Corp would find it hard to operate. In fact, all these objectives support the vision of build greater global logistic solutions if they are effectively utilized. References: Andersen, T. (2004). Integrating the Strategy Formation Process: An International Perspective. European Management Journal, 22, 3: 263–272. Farahani, R. (2011). Logistics operations and management: concepts and models. Amsterdam; Heidelberg [u.a.]: Elsevier. Goodstein, L., Nolan, T. & Pfeiffer, W. (1993). Applied strategic planning: a comprehensive guide. New York, NY: McGraw-Hill. Long, D. (2004). International logistics: global supply chain management. Norwell, Mass.: Kluwer Academic Publishers. Moradi, H. (2012). The Role of Strategic Planning and Management in Increasing Organizational Development and Productivity. European Journal of Social Sciences, 30, 1: 70-77. Rushton, A. (2010). The handbook of logistics and distribution management. London : Kogan Page. Read More