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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
COPY RIGHT © 2014 Institute of Interdisciplinary Business Research 469
JANUARY 2014
VOL 5, NO 9
Perspective Model Designing and Strategic Planning for the Governmental
and Regulatory Agencies Applying the Futures Studies Approach
(AnIntegrated Model) Based on Comparative Methods of J M Bryson, Pearce and Robinson, Harvard ( swot),
Fred R. Davidand Hungr (tows), Kaplan and Norton’s (BSC) Models
Habib-allahFatahi Ardakani
Ph.D. student in Human Resource Management, Institute scholar Index of the University of
Isfahan
Abstract Strategic planning includes some features such asbeing crucial and vital,comprehensiveness and
macro view, creating a competitive environment, based on substantial changes, and looking
toward the future; therefore, not every scheming and action, although in the form of a plan,can
be regarded as a strategic one. A strategic planincludes defined certainprinciples, goals and
strategies, policies and approaches, and sequence andexecutive steps. There are various models
and patterns for its scheming and execution that are different from each otheraffected
bycultures, structures, roles, and assignments. The present paper aims to investigate the
principles, definitions, and concepts of models in order to present a model for governmental and
regulatory agencies in accordance withtheir structure and features.
Based on investigations done by Harvard ( swot), Fred R., and Hungr (tows) models, balanced
scorecard (BSC) has been used by most non-governmental companies and organizations.It was
found that the strategic planning is the best way to solve problems through a top-down planning
system; and the balanced scorecard (BSC) was considered as the best way to evaluate
andprogress assurancein line with goals through organizing and actionable reporting
components.
This study presents some factors such as: requirements of governmental agencies in the
formulation of the strategic plan, identifying the expected modelby examining different types of
models and patterns, identifying the main factors in the process ofthe formulation of the main
strategy and proper techniques with regard to the governmental and regulatory agencies’
position.
Key words: Strategy, Perspective, Strategicplanningmodels, Environmental assessment,
Governmental and regulatory agencies, Futurestudies
Introduction The term strategy derived from strutegoswas the title of the Greek armyleaders in the past
which means the wisely war command (Lotfian, 1384:1)and the skill of employing military
resources and today it appeared in a broader sense. Strategic planning is done by political and
military leaders. Based on the Webster 'sdictionary strategy is the science and art of employing
the political, economic, psychological, and military forces of a nation or group of nationsto
afford the maximum support toadopted policies in peace or war (Lotfian, 1384:3).Clausewitz
considers strategy as the fighting the enemy for the purpose of war (Lotfian, 1384:23).Liddell
Hart knows strategy as the artof distributing military means to fulfill the ends ofpolicy (Lotfian,
1384:2).
Chandler’s strategicplanning includes the underlying objectives of the organization and
applying patterns and operational procedures and allocate the required resources to achieve
them (Nejatbakhsh&Nikookar, 1388:44).Quinn considers strategy as an scheme or pattern
which mergethe objectives, policies, and operational chain of an organizationin the form of an
interconnected body (Faqihmirzaie, 1391).
Ansoffbelieves strategy as a comprehensiveunderstanding in the ways of great and increasing
responsibility of the publicmanagement wherebythe organization move in relation to the
environment and find its position in a way that leads to the organizational success
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JANUARY 2014
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(Faqihmirzaie, 1391). The term Tactics derived from taktikameans the technique in the use of
battlefield equipmentand then is distinguished by measures to achieve a specific goal of the
strategy.While strategy refers to the planning in order to identify goals, policies, and programs
at all levels, tactics related to the process of implementation and the use ofschemes and plans
(Faqihmirzaie, 1391:8).
Type of Strategy and its Level Macro strategy has various types (Faqihmirzaie, 1391:21):
The main strategies (13 types)
The sub strategies (14 types)
Functional strategies (3 types)
Macro strategies (13 types)
In terms of levels, it also exist in the form ofa national level (macro, theaters, operational,
tactical, and technical) and corporate level (official, competitive, and operational) and each of
them is considered for certain situations and aims.
Global Developments Impact on Strategy in the Last Three Decades: Development of strategic issueshas been passed its supplementary stags since500 BC and has
changed its area from military and war matters to the economic, commercial, social, and
regulatory planning; in this regard, investigations and theories of people such as Clausewitz and
Liddell Hart were helpful in its development and examination. Since 1960s the strategy found
its way to the management issues and in the last four decades of the 20th centurywent through
stages of growth and maturity, and also Ansoffand Chandler create effective actionsin linking
the strategyto the concept of plan asamanagementandevaluationsystem. Some effective
developments are as follows:
1. Changes in the political, economic, and social formulation
2. Developmentofnewtechnologies
3. Changesinthecomponentsofthepower
4. Developmentofinformationsystems
5. Influenceonstrategicissues
6. Changesintheadministrativestructureoftheorganizations
7. The emergence of new strategies
8. The emergence of fuzzy and virtualsystems
9. The idea of tomorrow's organizations
10.
Mintzberg's ten schools of strategy: (Kiani&Qafarian, 1387:185)
1. Design School: as a conceptual process of strategy formation done through matching
strengths and weaknesses (internal) and opportunities and threats (external). This process is
applicable to other developed approaches due to its transparency and simplicity.
2. Planning School:as a mental process: Formal, due to its systemization, has the ability to
separate to the executive goal setting steps, budgeting,in the form of operational plan.This
school is effective in the case of mechanistic organizations in a stable environment.
3. Positioning School:it's defined as an analytical process of strategyin the form of
structured analytical processesof the environment in order to choose a suitable situationfor the
rival supremacy. This method is based on actual data and analysts and consultants have a special
place .
4. Entrepreneurial School:as an idealistic process, changes strategies from contrive plans
and accurate positioning to the vague perspectives and wide visions; in this approach the leader
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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
COPY RIGHT © 2014 Institute of Interdisciplinary Business Research 471
JANUARY 2014
VOL 5, NO 9
of the organization has a close supervision on the implementation process. This school is useful
in the case of starting a new business.
5. CognitiveSchool:as a mental process, considers the innovative business changes as the
base of strategy making rather than to examine a mental image from the external and actual
reality.
6. Learning School:As a spontaneous process,it has been developed descriptively and
logically from theoriesofdiscretestepwisestrategy. Strategies have emerged spontaneously in the
school and will be completed during the implementation.
7. Power School:as a bargaining process,considers the power (inside and outside the
organization)as the base of strategy in terms of formation. This power is the base of bargaining
for guiding the collectivestrategies in line with the organization's interests.
8. Cultural School: as a social process, and unlike power school, it depends on
thesocialdesirabilityandintegration rather than individual desirability and component thinking.
This school is based on the collective strength of the society and today is considered in the
Japan and U.S.
9. Environmental School:as a reaction process against the environmental changes and
based on contingency theory, it can be a mechanism for the organization responding to
theenvironmental temporal changes; it considers as an integration of power and cognitive
schools.
10. Configuration School:as an transformation process, it considers the organizations as
agroupofcompetitors; meanwhile, it knows all schools reliable and integrate. It also finds each
school a proper one tointegratethetransformationprocess.
In this research, in order to present the intended configuration model, not only some aspects of
the mentioned schools were examined, but also the Planning, Design, and Configuration schools
investigated.
Dominant Perspectives on the Strategic Planning System: First perspective (perspective of Ansoff): he had a technical view toward the strategic
planning and believed that the planning has a constant, logical, rational, and official process
which planners should strive for organizational goals based on its techniques (Kiani&Qafarian,
1387:18).
Second perspective (perspective of Mintzberg): he did not believe incomplete problem
solving through programming techniques as a certain kind of managementattitudeand apart from
organization’s administrators; but, he claimed that the organization’s administrators and experts
would solve problems not due to an official and logical process but within a gradual
processcomes from their intuition and experience (Kiani&Qafarian, 1387:19).
Third perspective (perspective of Withington):as a realisticthinkingand a combination of
both previous views, he tried to make them close and solve their inequities and also tried to
clear their position by classification the views to the classical, evolutionary,process, and
systemicperspectives (Kiani&Qafarian, 1387:21).
Investigation of the Intended Models and Patterns: Usually, the method and pattern of the strategic designing is selected based on level,
assignment, duty, and organization and in this regard organizations, governmental or any other
type, have different performances.Records show thatthese models applied by various areas
inexpertlythat could not lead to theprogram goals and imposed costs. As it was revealed, 9 out
of 10 companieshave failed at their strategy implementation; some agencies was not effective in
implementing their strategic plans and the total percentage of achieving the goals and their
implementations of the country five-year plans was reported less than 50%; among the major
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reasons of this failure are not only the lack of coordination and resources, weakenforcement but
also is the lack of appropriate model.
Due to the investigation on the comparative models of large and small organizations, it was
revealed that from 28 models, with the overall goal of understanding the strengths, weaknesses,
opportunities, and threats,9 modelsare more important that their specifications include:
1. Tyler objective model: it was codified in 1975 and is the process for long term
codification of goals, outlines, activities, and organizational assignments.
2. Harvard policy model (swot):it was presented by Anderson in 1980 and applied the
opportunitiesdesigning and evaluating method, environmental threats, strengths, and internal
weaknesses.
3. Andrews corporate strategy model:it was proposed in 1980 and follows a decision-
making model based on the codification of the main aims, minor aims, and the intentions of a
firm.
4. Porter's competitive model: according to this model, the competitive strategy is
designed for a greater share of the market and it is considered as one of the most famous and
most efficient models.
5. Wright model: it was suggested in 1992; this model has been totally affected
byinformation system at designing stage (participation, activity, duty) and implementation
(structure, leadership, organizational culture).
6. Mintzberg's model:proposed in 1990 which put emphasis on the strengths and
opportunities assessment affected by management's beliefs and social values.
7. Swot model:it tries to analyze the environmental factors (internal - external)
quantitatively based on the subjectivity; it also considers as the supplementation of the issues
raised in the Harvard policy model, GE model, and BCG model.
8. Bryson model:it has been developed in order to analyze the previous models and
examines their terms of applicationin the public and nongovernmental sectors. Based on this
model the result of each stage (10 schools) for the next stage supplementation or revision.
9. CMS model:know it has developed to the HCMSand required to pass from 25
operational stages which used to design the organizations’ programs.
Chafy’sIntegrated Strategy Model:
1. Adaptive Strategies Model: based on Hofer definition there is a logical relationship
between opportunities and risks of the environmentthat exists for the benefit of the organization
and comes from the dual effects of organization and environment.
2. Interpreting Strategy Model: due to the complex relationship between the environment
and organizationand for a better understandingofthe situations, this model is based on social
contract (agreement between individuals) rather than an organism view of the organization.
3. Linear Strategy: according to the Chandler definition, this model put emphasis on the
decision making and planning in order to achieve the organization’s goals; This model is for
organizations with few outside influences andthe internal consistency and construct.
Triple Combination Models
1. Philips combined methods:first, the ideas and long term goals are reported; then, its
performance in the case of internal and external factors is evaluated and if it is successful, it will
continue, otherwise it will be modified. The model pays attention to the financial resources,
force, customer, innovation, and efficiency.
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2. Balanced scorecard (BSC) method:it is based on performance measurement
methodsand is one of the best ways of strategic planning throughperformance measurement by
four key aspects: financial, the customers, internal processes, and development and learning.
This method identified goals for each aspect; and in order to achieve the standards, some actions
and plans are selected and would measure after implementation.
3. Performance improvement plan (PIP):this method is for the effectiveness of long-
term plansin stable environment. Among its features are making common sense, and identifying
and providing solutions by liableswhich involve the senior managersin analyzing and solving
problems. So, first of all the intended goal should be identified then, the main problems
identified through swotand at last, the appropriate solution is proposed.
Common Points of Various Models:
1. Three stages: in all models we can find: identifying mission, goals, and strategy,
environmental analysis, and implementation and evaluation process.
2. Some cases such as structures, principles, values, and goals exist in all plans either
overt or covert.
3. It includes the differences among models due to the sequence of steps, number of stages,
and transposition of the designing and implementation stages.
4. All models have almost the same structure as either simple or complex.
5. In the case of small organizations, due to the lack of resources and low forces, some
stages such as determining the values of senior managers is addedwith no need to the long
process.
Integrated Model Selection: Using survey resultsand finding about the implementation of the strategy plans, in the case of
place and allocations of the governmental institutions, this model includes the things that lead to
the state authority and its interests take into account all the segments of society
(CivilServiceManagementCode, Article 8); and also, considering the area of responsibility and
functionality of the organizations (policy making, planning, control), an integrated model
proposed in the context of such models: SWOT-BSC withvalue, structural, and administrative
features.
Common and General Stages in the Strategic Planning Pattern as an Integrated Model:
1. Establishing a Strategiccommittee
2. Considering the situation anddetermining the position of the organization
3. Identifying the bases, principals, and values
4. Investigating the assignments and macro goals
5. Evaluation factors (internal and external)
6. Identifying the organization’s strategy (macro, business, task)
7. Identifying the policies (implementation area)
8. Presentation of plans and operational programs
9. Budget and resource allocation
10. Set the standards and monitoring indicators
11. Feedback monitoring and evaluating
12. Obtaining results (quantitative and qualitative)
Varieties of Strategic and Macro Factors:
Perspective:it defined as the appropriate future image and an achievable patternbased on
theoretical models, principles, assignment, and macro goals which is beyond thenational
document of Strategicplan.
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Strategic document: as the basis and guide to decision making at the national, regional, and
provinciallevels, it includes both parts of strategy (policies, strategies, facilities, requires) and
operation (plans, actions).
Long term planning:it is according to the rational approach (goals and objectives) based on
strategy (plans and actions) and has less affected by environment and changes.
Strategic planning:it is designed and focused on changes based on the influences of the
external environment (opportunities and threats) and internal environment (weaknesses and
strengths).
Comprehensive planning:it is formedas an ideal and with orientation in some major roles,
derived from the law and controls, and is more comprehensive and inclusive.
Relationship between thinking and strategic planning: Strategic thinking isthe main basis in designing andimplementationofstrategicplans; also, as an
art andthe science of codification, implementation, and assessing decision making it
enablesorganizationstoachieve their aims. Based on Stucky’s view strategic thinking is action
planning in agreement with new learning and Mintzberg also considered itas a mental and
creative process in order to create a perspective (Soltani, 1386:23).Hamel and Prahalad believe
that the strategic architecture and skill are the basis of creative strategies. According to the
Mintzberg, planning and strategic thinking are two separate mental processes that the former is
in connection with the analysis, creation, and formalization of systems and procedures, and the
latter includes combination or integration, strengthening intuition, and creative and innovative
thinking at all levels of the organization.
The two main techniques for designing comprehensive and macro plans:
a. Strategic planning:
Strategic planning is based on a futurism in line with a long term planning however, due to the
impossibility of predicting the future, it considers the probable future. Researchers try to predict
for short times but for long times the idea of planning is common that is based on the idea of
hypothesis and also imagination.
b.Scenario planning: Scenario is a concept of prediction (not forecasting); so, in order to form the strategies and
policies of the organization in a new and dynamic environment, the imposed future and probable
events is investigated, through a logical narration. Scenario is a method of organizing the
thoughts and decision making of future and unlike the prediction (certainty), scenario
(uncertainty) is the implication of how something occurs rather than follows the events. Now it
is believed that Foresight (futures studies) approach is the best way rather than methods based
on the past.
Variety of qualitative and quantitative methods, includes:Quantitative methods (simulation,
non-linear models, analysis, regression) and qualitative methods (brainstorming, Delphi,
scenario)
The interaction and fourfold relationship between strategic issues:
1. Strategic management:as the starting point of the strategic thinking in strengthening the
intuition and playing the major rolewith the synergy resources, it has five dimensions: the
combination of material and spiritual potential, think and plan for the future, a philosophical
attitude, creativity and innovation, and the sense of supremacyare indicators of each section
(total 37 dimensions). The strategic management is in connection with the strategic planning in
organization’s long term and macro instructions due to a continuous and cyclic process with the
aim of maintaining the general relationship between the organization and the surrounded
environment dynamically (Soltani, 1386:93).
Based onDavid Hunger and Wheelenperspectives, the strategic management has an important
role in ensuring the future actions; as the investigations revealed a better organizational
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performance and qualityfor the companies that deals with strategic management and planning
(Hunger &Wheelen, 1389:17).
5 major steps of the strategic management in codification, implementation, and evaluation
strategy:
1. Vision document and mission statement
2. Qualitative and quantitative targeting
3. Macro and micro strategic codification
4. Implementing strategies in the form of plan
5. Performance evaluation and control
2.Strategic Thinking: as a strategic architecture skill, it is considereda strong support for the
implementation and effectiveness of programs; it is the mental process of the organization’s
management and incudes some dimensions such as: holism, futurism, understanding
introspection and intuition, flexibility, deep thinking, logic and generating ideas, inspiration,
creating ideas, social intelligence, and intellectual analysis. Strategic thinking tries to combine
and integrate the intuition and creativity to form a perspective.
Jane Liedtka(Hunger &Wheelen, 1389:74), a well-known strategist affected by Mintzberg
thoughts, considers the principles of strategic thinking based on five major assumptions (1998):
1. System perspective: represent a system with holistic view
2. Intent focus: includes focus on the goal and target
3. Thinking in time: means thinking at the right time
4. Hypothesis ptiven: it is based on hypothesis
5. Intelligent opportunism: it is clever and opportunistic
3.Strategic planning:as a way of decision making for the future of a changing world, it follows
a non-liner and dynamic process with some dimensions such as: holistic view, a philosophical
outlook, simplicity, considering the environmental changes , creativity and innovation,
empowerment, effective use of resources, flexibility, realistic, goal setting, perspective.
In order to achieve the goals, this planning tries to analyze a set of implementing stagesso, it has
a logical and deductive thinking.
4.Strategic control:based on some researchers opinions, such as Toffler and Drake, this
strategy, as a part of effectiveness management process, is a mechanism for documenting non-
linear - irregular changes during the discontinuity (Nejat-baksh&Nickoo-kar, 1388:9); strategic
control, monitors unavoidable external environmental changes and also connect the actual
performance of the organization to the planning. It has different types:
3 types of controls from the strategists’ points of view(Nejat-baksh&Nickoo-kar, 1388:96):
1. Operationalcontrol: effective performance of activities
2. Managerial control: ensure the correct designing of program strategies
3. Strategic control:for the continuity of actions in line with organizational objectives
through the evaluation and reviewing the performance process
Levels and hierarchy of strategy codification:
1. Corporate level strategy:Senior management leads activities as the pattern and
perspective of the organization. at this level, the aim of strategy codification is to guide the
entire organization and optimum allocation of resources. Among the levels of strategies are:
Directional, Portfolio, and Parenting strategies.
2. Segment / unit level strategy: It relates to the large organizations and performed in
order to improve the situation and known as business strategies. Each part has its own mission
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and strategy in line with the mission and strategy of the large organization. Business strategy
includes: Development, Competitive, and Coalitionstrategies.
3. Functionallevelstrategy:Based on higher-level goals and strategies, a function should
be determined for every units with the aim of maximizing productivity; also, the implementation
of the strategy is the main responsibility of managers.
Among the functional strategy are: Financial, Research & Development, Production &
Operations, Human Resources Management, and Information Systems strategies.
Strategic Planning Characteristics: it deals with the main and important matters; while
identifying the major issues, it resolves the problems at macro level and improve the
performances. It has some features such as:
1.Futurist and forethoughtful 2. Flexibility 3. Accept changes 4. To be comprehensive 5.
Formation at high-levels 6. Presentation a framework for decision making 7. A feedback of
values 8. Focus on main issues 9. Changinginternalandexternalconditions 10. New
scienceand technology development 11. Expansion of information and communications
systems 12. Create new needs 13. Considering the functional issues 14. Balance between
demands and capabilities
Strategic Plan Prerequisites:
1. The liability of senior managers and leaders 2. Hierarchy and division of labor 3.
Planning and coordination 4. Scheduled execution
Advantages of Strategic Plan:
1. Having strategic thinking 2. Determining the future way 3. Right decision making
4. Development and quality 5. Productivity and improved performance 6. Making team
work 7. quick and positive changes
Applications of Strategic Plan:
1. Helping organizations to develop effective strategies 2. Priority identification and
correct leading 3. Prediction and looking toward the future 4. Considering the aspects of
decision making 5. Performance improvement and resolve major issues 6. Facing the changes
with the help of coherence and unity of the group
Characteristics of a Good Strategy:
A good strategy should be based on the organization’s principals (inner eagerness), considered
as center for all activities (integration), and has limited number of goals; the other characteristics
are as follow:
1. Being coordinate and reactive 2. Consistent with the objectives 3.Being accessible and
possible 4. being challenged 5. Being competitive
Key Concepts and Issues in Strategic Planning: In association with perspective and the strategic planning process, with the goal of productivity
improvement and achieving the intendant aims and considering the organization’s function and
structure, it can be find various stages and sequences which is known as excellence pyramid.
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Generally, the codification and implementation of the strategic plan includes multiple factors,
some common and some not important, which are as follows:
1.bases 2.principals 3.values 4. perspective 5. mission 6. assignment 7. goal 8. basic goal 9.
Strategy 10. policies11. approaches12. ideal 13. motto 14. goals (quantitative and qualitative)
15. environmental analysis (internal and external) 16. strengths 17. weaknesses 18.
opportunities 19. threats 20. designs 21. plans 22. projects 23. control and assessment 24.
quantitative and qualitative results 25. mechanisms 26. guidelines 27. rules and regulations
28. methods and procedures 29. resources and budget
The main and functional concepts and components in proposed integrated model are:
1. core and values 2. vision 3. mission4.long range objectives 5. short range objectives
(qualitative and quantitative) 6. strengths and weaknesses, opportunities and threats (swot
analysis) 7. strategy 8. policies 9. tactics 10. laws and regulations 11. methods and
procedures 12. functional strategies (plans) 13.resources and budget 14. performance
assessment criteria
The triple process of strategy codification, strategy implementation, and strategy assessment,
originated from Fred R. David strategic management model, which exist generally in all
strategic planning patterns; so, we also consider it as a framework. The main stages of integrated
model are:
implementation codification
Assessment
Management
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1. Core and principals of the plan:
Cores as a fixed set of termsand binding rules, derived from the value system of the societyand
the organizational norms and practices and achievements, affect on all stages of the plan and
also distinguish it from other plans and designs. These principals are:
1. value system 2. experiencesand achievements 3. the country vision document and five-
year plans 4. national development documents 5.upstream rules and regulations 6. higher
authorities points of view
2.Values:as the decision making principles, it present some guidelines in the forms of offers and
prohibitions and also leads to the formation of missions, ideals, goals, and visions. Values are
the instructor of the behaviors; they are unchangeable and nonconvertible since they originate
from paradigms, worldviews, and professional ethics. Values are the bases of an organization’s
cultures that distinguish it from other organizations. Generally, they are as follows:
1. excellency 2. ethics 3. empathy andparticipation 4.respect for people 5. rule governed
6. service 7. knowledge-based 8. skills and abilities 9. work discipline 10. transparency
11.accountability 12. organizational commitment 13. effectiveness 14. being updated 15.
quality-oriented 16. customer focused 17. secrecy 18. responsibility 19. considering human
dignity 20. principle of fairness 21. fair achievement 22. trustee 23. cultural preservation
3.Vision:as the future design at the present time: briefly and clearly shows an ideal future and
represents the macro goals. The vision talk about four types of futures:Desirable, Probable,
Unbelievable, Possible that each of them show the future. Future vision focuses on two
elements:
1. what we can be
2. future needs that we can be responsive
Four types of visions are: World vision, National vision, Regional vision, Local vision. After
vision designing, strategic plan should be prepared in order to achieve this vision.
Vision Characteristics:
1. holistic 2. realistic 3. flexibility 4. finding opportunities 5. ambitious 6. unique 7. make a
dedication 8. brevity and useful 9. asking for participation 10. create job satisfaction 11.
suggest a criteria 12. encouragement of learning 13. Determine the future way
4. Mission:as the corporate philosophy, it shows attitudes, organizational values and certain
document on the activities, and types of services. According to Drucker, a strategy starts with
such question: What is our core business?So the answer means the mission. By determining
the corporate philosophy, the mission revealed us who we are, why we are, and where we move
to.
Mission Statement:is a document which distinguishes the aim of an organization from others
and can act as a framework for assessing the organization’s activities. Its characteristics
includes:
1. brevity and useful 2. inspirative 3. having amity 4. creating motivation and unity 5. Well
documented and accessible 6. clear and comprehensible 7. consider values 8. being ideal 9.
sufficiently apparent
Component of the Mission:
1. customers 2. products or services 3. the survival factor (profitability) 4. its philosophy 5.
distinctivefeatures 6. People’s attitudes 7. staffs
- Assignment:considering the current activities (what we are at the present time, current needs
which we react to them), it indicates the range of activities and is the same as mission and shows
its role in the society. Assignment identification makes the organization as an ideal place and
provides the context for growth and progress; so, it should be a little measurable, understandable
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and can be evaluated. Assignment is the philosophy of an organization but goal is the point that
the organization move toward it. The main questions in this part are: Who, What, Why, Where,
and How which focused on the current activities and situation of the organization.
Critical Factors in Achieving the Organization's Assignment:
1. rate 2. Quality 3. information system 4. classification of services
5.Ideal:in line with both fantasy and reality, expresses the inner wishes and demands for the
futureregardless of restrictions; it originates from values, assignments, and beneficiaries and
usually expressed in short and attractive terms.
Some Characteristics of Ideal:
1. attractive 2. idealistic 3. generating commitment 4. value 5. realistic 6. accessible 7. being the
origin of power 8. intellectual and imaginative 9. crucial 10. modern 11. permanent 12. brief
and clear 13. deep and excellence 14. an special imagination
6.Goals: as the purpose, it is results and desires that the organization tries to achieve them in
long term (3-5 years) then, is very important. The goals, at the desired status, have some
features such as: provability, accessible, flexible, compatible with the mission, and focused on
the desired position which change it to a possible factor.Goals should be specific, relevant and
flexible and also in such a way that it is easy to understand, makeliability and property
independent, be realistic and achievable. Also the goal should be acceptable at the functional
level, improves achieving the object, and be and quantitative, measurable, understandable and
accessible; it should be express in short or broad sentences and has direct relationship with the
mission.
Five Dimensions Characteristics of Goals (smart):
1. Specific
2. Measurable
3. Attainable
4. Reliable
5. Time limit
Macro Objectives (Fundamental): It originates from documents, legal resources, and general policies and is expressed in response
to the nature and what.The fundamental goal includes all components, inner and persistent
characteristics and ensures the survival of the organization.
Micro Objectives (Operationally): In terms of importance and time range, it includes a lower level (1-2 years) and follows the
same way operationally.
Long term goals:is the set of each two or three medium-term goals.
Short term goals:usually achievable within one year
Medium term goals:includes three to five one year short term goals
7.Strategy (Macro-Operational):strategy originates from some rules which are the best way to
achieve the goals and plans. It is an interconnected collection which leads to achieving ideals
and goals considering the organization’s resources and equipment.
Designing and implementation of the strategy are affected by internal and external
environmental factors; strategic managers (those who are able to identify, analyze and set goals)
and leaders (those who has not only strategic vision but also the ability of its
implementation)have also important roles during this process.
Strategy is a mapping and designing for an easy way in order to achieve the organization’s goals
and mission. It is affected by rules and policies and the internal and external environment
assessing results play a major rule in this process. Then, it is chain of macro plan and main
pattern which leads to the goals and operational policies as an interconnected whole. Strategy is
a way in which we can achieve desired situation while avoidingundesired one.
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Key concepts of strategy issue are:create development, organizing, progress and promotion,
actions, coordination and integration, modernization, delegation, increasing productivity,
transformation and opportunism, institutionalization, efforts and diversification
Strategy Measures:as the evaluation indicators, they are involved in all stages of planning and
implementation; the indicators are: be clear and simple, quantitative ability and measurable, new
questions to uncover the truth, a key and apprehensible prediction, innovative and new ideas. In
order to preparea context forthe emergence of strategy, indicators, as the scale of
measurement,should be integrated, reliable, accurate, well timed, and confidential and secure.
Experts have expressed the strategy measure in 6 P: 1. Plan 2. Ploy 3. Pattern 4. Position 5.
Perspective 6.Promotion
Methods for Determining the Strategic Issues: 1.Direct Method: after determining the mission,organization’s commitments, and analysis of
environmental issues, it deals with examining the strategic issues directly.
2.Method Based on Goal:by defining the goals, it designs the strategies in order to achieve
them in organizations with usualhierarchical.
3. Scenario Method:by identifying an ideal vision of the future, it suggests a programmed and
practical way in order to achieve the desired situation.
Key Concepts and Issues in Designing Variety of Strategies:
1. where are we now? (what is the problem?)
2. where we will be in future If we do not change? (what should we do?)
3. How to do the works better? (what are the possible risks in the case of ignoring?)
8.Identifying the Current Situation: In order to design the main processes and also to set goals and strategies, identification and
analysis of the present situation is essential; so, it is done through considering the strengths and
weaknesses (internal environment)and opportunities and threats (external environment),and also
with theoretical and field studies of effective factors,operatingconditions, and statistical data and
information. This stage is centered around two main issues.
- Internal Conditions IFE: 1.1. Investigating the performance procedure based on core activities
1.2.Investigating the organization resources including management, human resources,
equipment, funds
1.3. Investigating the organizational factors, corporation, financial systems, methods and
procedures, training and research
- Environmental Conditions EFE 2.1. Investigating the environmental conditions affected by organization's internal issues
2.2. Investigating the environmental conditions affected by organization's external issues
At this stage, the recent situation outlined in order to find a vision of it; hence, using this outline,
it can be set up some hypothesis in order to identify main strategies of the organization and
other factors such as macro goals and policies so, the future would be predictable.
Assessment of Environmental Conditions (Internal, External)
opportunities
O
strengthens
S
aggressive
growth
strategy
Strategy
with shift
orientation weaknesses
W diversity
strategy
defensive
strategy
threats
T
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Internal Factors (weaknesses and strengthens):includes: human resources, financial
resources, management factors, facilities and equipment, information systems, research and
development, production and operations, products quality, strategies and plans, marketing
External Factors (opportunities andthreats): includes: policies, the new rules, changing
behaviors, lack of resources, and also the issues in the areas of politic, economic, society,
technology, and competition
Strengthens:these are inner potentials and abilities which considering their performance is a
privilege and leads to empowerment. Such as skilled employees, strong financial support,
dynamic structure , facilities and equipment
Weaknesses:these are inadequacy that their existence or ignoring them is a negative point and
results in the inability. Such as insufficient research and development, technical weaknesses,
lack of human and financial resources
Opportunities:these are hidden potential and proper external conditions in order to achieve
objectiveswhich identifying and applying them act as an acceleration motion. Such as weak
competitors and new markets
Threats: these are problematic and inappropriate external circumstances in the way of gals
which ignoring them prevents growth and development.
Identify External Environment Affecting Factors:
1. Domestic level:structural factors, staffs, culture, managers, resources
2. Specialized level:executive organizations, suppliers, governmental agencies, stakeholders
3. External level:factors such as economic, cultural and social, politicaland international, rules,
and technologic circumstances
Identify Stakeholders: All natural and legal persons whohave a stake in the organization, and their actions and
demands are somehow in connection with their interests (either influential orimpressible), are
considered as the stakeholders and should also take into consideration in plans, demands, and
interactions. These factors are:
1. shareholders (owners) 2. customers (client) 3. managers and staffs 4. government 5.unions 6.
competitors 7. suppliers of raw materials 8. society
in business planning the third question arises: how to win the competitors?
Swot analysis and assessment of the results, at the stage of evaluating and adjustment the table’s
results, using the Qspm matrixvariety of strategies are identified and evaluated.
SWOT matrix
Assessing the internal factors
IFE Assessing the external factors
EFE
Strengths
S Weaknesses
W
Opportunities O SO Strategies WO strategies
Threats T ST strategies WT strategies
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Four Major Strategies According to the Results of the Environmental Assessment and
Analysis (swot):
Issues that arise from the combination of strengths and opportunities (SO), growth and
development strategy (aggressive). The organization tries to take advantage of external
opportunities by using the key strengths.
Issues that arise from the combination of strengths and threats (ST), diversification strategy
(competitive). The organization tries to decrease or remove the effects of the environmental
threats by using its strengths.
Issues that arise from the combination of weaknesses and opportunities (WO), integration
strategy (conservative). The organization tries to improve the internal weaknesses byusingthe
current opportunities and external environment.
Issues that arises from the combination of weaknesses and threats (WT),defensive strategies
(stable). At this stage, due to the risks exposure, the organization tries to reduce some actions
(reduction or transfer) or change its way (amalgamation and bankruptcy)in order to survive.
9.Policy:at a lower stage than strategy, it acts as general guidelines, offers, prohibitions,
boundaries, ranges and joins the codification and implementation of strategies together. Some
knows them the same as those strategies that are implemented at the time of identification.
Policies determine the way to achieve goaland strategy determines how to achieve this goal; so,
there are dominated strategies in order to achieve goals. In other words, considering special
conditions and respect the rights are requirements for achieving the goalswhich is called policy.
After the targeting stage,policy, as decision makingframeworks, is the important one which
leads to connection and continuity of actions in the form of decision-makers, and originates
from society values, ideology, social structure and etc. among its characteristics are: being long
term, binding, with no beginning and no end.
The key concepts in policy are: promotion and development, enhancement, the encouragement
and support, recognition and measurement, policy & planning, improve the effectiveness,
integration management, preparing the requirements &collaboration, maintain engagement,
integration, usage & take advantages
10.Tactic:it is considered as tools, methods, and techniquesin order to get closer to the
strategy’s goals and today is integrated with technique and technology in the form of software
and hardware. Tactic is in lower level than policy and applied at special stages of strategy
implementation.Technique is the method and skill to perform a task and generally considered as
methods of tools usage.
11.Approach:approaches are also considered in strategic and annual plans which indicate the
attitudes and directions of the program; it comes from analysis and strategic factors and leads us
toward the purpose as a new way. Strategic and annual plans usually have approaches originate
from mission and goals and as well as policies, show direction.
12. Regulations, Methods, Procedures:define as rules and guidelines governing the plan’s
actions which originate from laws, and in line with organizational methods and procedures, exist
at all stages of plan’s codification and implementation and also affect on plan’s designing,
implementation, and assessment procedures. As well as policies, it sets in a lower level but
affects on all factors.
13. Codification and Implementation of Operational Strategies (designs, plans, projects):as
ideas and quantitative and qualitative actions, with certain time performance and achievement,
has been identified by interval. Plans indicate the stages duration of each strategy and considers
as innovative actions to achieve the appropriate strategy. Designs are the process of changing
the policies to plans which define in terms of plan after organizing, cost classification, time, and
approval.
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Implementation of all main and sub processes of a strategy, in the form of design and plan,
required separate actions which defined as project during the operating process; then, projects
depend onthe numbers of operational designs and plans which implement once in a given time,
for a specific result, service, cost, and quality.
14. Resources and Budget Allocation:funding, force, and control are known as main factors of
efficiency; so, the resource issue is among the main activities which should be identified based
on actual requirements, goals and operational strategies. There are at least four major resources
include: financial, human, technical and support resources which allocating their required
budget is among the strategic goals. They are important since create official position to
implement policies, strategies, plans and programs.
15.Results Control and Assessment:although this process sets at the final stage, has been exist
Widely and consistently in all phases and levels of planning and action and somehow is a
continuation of the results in terms of efficiency. In this case, there are various qualitative and
quantitative methods and patterns in order to ensure the proper implementation of the program;
among these methods, strategic control processes is the most important one which ensure this
effectiveness. Some effectiveness criteria are:
productivity and efficiency, profit, quality, growth and development, morale satisfactionand
motivation, success and progress, enhancement of skills, stability, cooperation
The Nature and Structure of Strategic Issues: According to the investigations and management scientists’ opinions, the nature of all factors
considering in strategic issues generally consists of three main topics (Varzeshkar, 1390):
a. Goal: considered as the inflection point of all activities of the organization which includes:
assignment, mission, vision, needs and benefits, the final point, achievements, expectations,
demands,ideals, results and motivation
b. Way:it is the way to achieve the goal which includes: strategy, policy, design, plan,
procedures, budget, devise, decision,function, action, method, law, rules, tactics, technique
c. Resources:the required rules in order to achieve the goals which includes: financial
resources, physical,human, information, technology, facilities, time, rule, advantage, strengths,
threat, weaknesses, opportunities, the basics, beliefs, values, features, equipment
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