LETTER OF TRANSMITTAL1
ORIGIN OF TEA – LEGEND MYTHS AND FACTS4
VALUES AND VISION16
STRATEGY IMPLEMENTATION & EVALUATION60
The purpose of this report is to understand whether the strategic management techniques or methodologies are in use in the organization, and if so what results, if any, do they yield. The research has provided sufficient evidence to conclude that Tapal’s strategy played the greatest role for attaining the position where Tapal stands today. Tapal is continuously improving its strategy through learning to develop strategy over time. It defines its strategy effectively and communicates it clearly to all levels of organization. Therefore we have accepted the null hypothesis, i.e., Tapal’s strategy has enabled it to gain competitive advantage over its competitors.
Ho: Tapal strategy enabled it to gain a competitive Advantage over its competitors. HA: Role of strategy is insignificant in Tapals’ success.
To test our hypothesis, we have followed the following methods:
Information gathering through interview
Matching the external with the internal & decision making
In this part we will discuss the strategic management process and all its steps in detail, in order to fully understand and clarify the scope of our research.
Strategic management is a modern management concept, and is one that has many opinions. It is very briefly defined as, the set of managerial decisions and actions that determines the long run performance of an organization (Robbins and Coulter, 2001). A comprehensive explanation can be, strategic management refers to the managerial process of forming a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then over time initiating whatever corrective adjustments in the vision, objectives, strategy, and execution are deemed appropriate (Thompson and Strickland, 2000).
A very popular name in the field of strategy is that of Mr. Michael Porter, and before we move ahead to the description of the steps involved in the strategic management process, it is important to clarify a few concepts with the help of his work. Firstly, we need to understand what strategy is, in the competitive business world. Competitive strategy is about being different…the essence of strategy is in the activities-choosing to perform activities differently or to perform different activities than rivals (Michael Porter, 1996). In essence the job of a strategist is to understand and cope with competition (Michael Porter). So, we can safely say, strategic management is the set of actions that the strategist takes to cope with competition through choosing to perform different activities, or same activities differently, than rivals. It is very important to understand that throughout the strategic management process, we need to work to be unique, and not follow the industry leader.
The strategic management process comprises of seven steps:
1) Vision and mission,
2) External and internal audit,
3) Long-term objectives,
4) Generate, evaluate, and select strategies,
5) Implement strategies: management issues,
6) Implement strategies: marketing, finance/accounts, and
7) Measure and evaluate performance.
Vision and Mission
A clearly defined and nicely sorted out vision and mission statement is essential for smooth operations of the company.
Vision statements answer the question “what do we want to become?” (David, 2002). This provides the company something to look forward to, something to pursue. Vision provides guidance about what core to preserve and what...