PROJECT CHARTER

Project Charter

Project Charter

The Corporate Mission and Vision

The first component of the strategic management process is crafting the organization's mission statement which is a description or declaration of why a company is in operation, which provides the framework or context within which strategies are formulated. (Hill, 2004)

Strategies in Action

* Production vs. Efficiency: A company is a device for transforming inputs (labor, land, capital, management) into outputs (the goods and services produced).

* Marketing and Efficiency: The marketing strategy that a company adopts can have a major impact on efficiency and cost structure. (Hill, 2004)

* Material Management vs. Efficiency: There is enormous cost reduction by using a more efficient materials management strategy.

* R&D vs. Efficiency: The role of superior research and development in helping a company achieve a greater efficiency and lower cost structure. (Zawaw, 2004)

* Human Resources vs. Efficiency: The key factor of a company efficiency, cost structure, and profitability is employee productivity. Productive employees can lower the cost of generating revenues, increase the return on sales, and boost the company's return on invested capital. (Hill/Jones, Page 124)

Strategies in Fragmented Industries

A fragmented industry consists of a large number or small or medium sized companies, none of which is in a position to determine the industry price.

* Franchising: the franchisor grants to its franchisees the right to use parent's name, reputation, and business skills at a particular location or area.

* Horizontal Merger: Companies choose horizontal merger to consolidate their respective industries. (Zawaw, 2004)

* Using IT and the Internet: The arrival of new technology often gives a company the opportunity to develop new business models that can consolidate a fragmented industry.

Competitive Advantage:

* Efficiency: The simplest measure of efficiency is the quantity of inputs that it takes to produce a given output, that is, efficiency equals the division of outputs ...