M. M.

HAQUE
54, 56D
MBA STRATEGY CLASS LECTURE 2

 Mission: Mission statement describes who the firm is, what it does, why it exists.
 Vision: Vision statements is where the firm wants to be in the foreseeable future. The duration
considered in vision varies from industry to industry. A technological firm will have shorter span of
vision duration than railway industry.
 From Vision, one has to form actionable goals. There will be many sub goals under the umbrella of
goals. The goals will lead to specific targets. Goals need to be SMART. SDG has 17 goals and 169 targets
under them.
 While developing strategy, a firm does not need to change mission statement, unless the situation
forces.
 With mission statement, philosophies and core values also tell what to expect from the firm.
 Many a time, firms in Bangladesh does not have any written or unified mission statement, they are
inside the mind of the key decision makers
 Strategy building process:
1. Understanding the mission, core values, and philosophies.
2. Establishing vision
3. Translating into goals
4. Building alternatives to reach goals
5. Evaluating the best one, the strategy
 How to know whether strategy is good or not: example of RMG sector. Of the whole value chain, BD
only takes care of making part. But vertical integration will be good or not. R&D is risky, especially
when we do not know about the consumers. Promoting Brand is very expensive and requires huge
investment.
 Resource fit: whether my resources support my strategy. Capacity building has to be considered.
 Organizational fit: The inside customers need to be ready for the strategy. For example, if IBA wants
to go digital and in the process fires half of the staff, it will not be successful.
 Strategy is not a wish list. The goals need to be SMART. Implementing the strategies is very vital.
 SWOT is a popular tool for internal and external analysis. But how to find the criteria for SWOT.
 One needs to back up the analysis with data (better if it is primary).
 SWOT analysis of the competitors is also important.
 TTF: This is a framework to consider for SWOT analysis.

Culture
Customers

Country context
 Inner triangle 3Cs determine where the firm stands. With vision (where to reach) in mind, strategic
moves need to be formulated. A firm has control on inner triangle, has influence on the second
triangle and no control or influence on the outermost triangle. SW are related to the innermost
triangle. Country contest are analyzed in terms of PESTLE. After this, SWOT synthesis is done.