Strategic Management, Case Study-1

Topics: Management, Strategic management, Strategic planning Pages: 3 (464 words) Published: January 31, 2012
Chapter 1: A Mandate for Strategic Management

Liberty industries, a firm founded in 1964, specialized in wooden package products, such as pallets, and was only a tiny three-person organization for nearly a decade. By 1987, however, the firm's sales grew by a factor of 20 approaches $20 million a year". The planning system that had always been effective was no longer adequate to meet the challenges facing the



With the help of consultant, the firm developed a nine-step planning process:

1. 2. 3. 4. 5. 6. 7. 8. 9.

Define the organization's purpose and reason for being.

Monitor the environment in which the organization operates.
Make a realistic assessment of strength and weaknesses.
Make assumptions about unpredictable future events. Develop specific and measurable objectives in areas contributing to the organization's purpose.

Formulate strategies on how to use available organizational resources in addressing environmental conditions and to meeting strategic objectives. Develop long and short-range plans to meet



constantly appraise performance and evaluate gaps between performance and objectives and purpose. Reevaluate purpose, environment, strengths, and weaknesses before setting objectives for the next year.

ln identifying Liberty's purpose, managers developed a mission statement that included the following .,Liberty is in the business.of marketing industrial packaging products and services worldwide in order to,realize a profit for the benefit of stockholders, employees, customers, and suppliers. Any industry that transports and/or warehouses its products is a potential recipient of Liberty industries services." With this short statement, managers identified the firm's product/market domain and its obligations stakeholders.



With their environmental analysis of opportunities and threats, the managers identified the following key issues:


Annual growth in demand of wood...
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