Assig 1 - Analysis Of Vision, Mission, Objective And 554q5j

MASTER OF BUSINESS ISTRATION

ADVANCED CORPORATE STRATEGY (MGT 6266)

INDIVIDUAL COMPANY ASSIGNMENT # 1

A & M REALTY BERHAD Analysis of Vision, Mission, Objectives and Strategy on assigned public company

Report prepared by: Abdulla Abdulqader Al-Attas (G1430873)

Contents Vision..................................................................................................................... 3 Effective Elements in Vision Statement..............................................................3 Shortcoming in Vision Statement.......................................................................3 Mission................................................................................................................... 4 Objective............................................................................................................... 5 Strategy................................................................................................................. 6

Vision The vision statement of A & M Reality is has been analyzed based on core concept that was highlighted by Thompson in his book “Crafting and Executing Strategy”

A strategic vision describes “where we are going” – management’s aspirations for the company and the course and direction charted to achieve them.

This will enable the strategic vision to function as valuable management tool to convey what top executives want the business to look like and provide managers at all organizational levels with a reference point in making strategic decisions and preparing the company for the future. Below is A & M Reality vision analysis: Vision Statement Create a progressive organization with an environment of professionalism, teamwork, quality, innovative and value added products and service excellence in all our businesses

Effective Elements  Flexible  Feasible

Shortcomings  Not Forward-Looking  Not memorable  Not Graphic

Based on our analysis A & M Reality Berhad vision statement had many shortcomings that may affect their manager’s at all organizational levels with from making strategic decisions and preparing the company for the future.

Effective Elements in Vision Statement 1. Flexible, A & M Reality vision statement language has some flexibility to allow the directional course to be adjusted as market, consumer, and technology circumstance change 2. Feasible, while the path and directions seems weak however, there were few languages incorporated into the vision statement enable A & M Reality to demonstrate measurable progress in achieving the vision.

Shortcoming in Vision Statement 1. Not Forward-Looking, the strategic course that will help company for prepare for the future was not described. 2. Not memorable, the vision does not give a clear sense of direction and purpose, and it will not be easily communicated to all employees on what the direction will be.

3. Not Graphic, a clear picture of where the company is headed and the market position the company is striving to stake out in not articulated clearly. A & M Reality Berhad strategic vision need to be improved.

Mission On the next step we will be looking at the mission statement of A & M Reality as it should describe its present business and purpose “Who we are, What we do, and Why we are here” and it is purely descriptive. Ideally, a company mission statement should cover the following: 1. Identifies the company’s products and/or services 2. Specifies the buyer needs that the company seek to satisfy and the customer groups or markets that it serves 3. Gives the company its own identity. A & M Reality Berhad mission statement as follow: “Our Mission is to bring quality, innovative and value added services and real estate of international standards, comparable with global developers within the reach of all by winning the trust and satisfactions of our customers and stakeholders.” Based on A & M Reality Berhad mission statement did try to cover most of the key elements in developing a mission statement, however it is not clearly articulated. The following will analyze the mission statement by each element: 1. Identify company products and services Looking at the A & M Reality mission statement, it shows the real state is their core business. However, going through their website A & M business is drilled down to three main products. (1) Real Estate development (2) Resorts (3) Food & Beverages, (4) Plantation (5) Automotive (6) Security Guard. 2. Specify the customer need that the company seek to satisfy This element has been covered in the mission statement, my point view, A & M Reality mission statement ideally revolve around this element. 3. Company own identity This element is covered in the mission statement, however the identity element is not clearly articulated due to how the mission statement language was constructed.

A & M Reality Berhad mission statement is to some extent constructed based on ideal mission statement elements and it will be need to further refined to be articulated clearly.

Objective The purpose of setting objective is to convert the vision and mission into specific performance targets. Well stated objectives must be specific, quantifiable or measurable and challenging and must contain a deadline to achieve. There are two main types of objectives that company require to set: (1) Financial objectives (2) Strategic objectives. There is also another type of objective to push company performance high enough by challenging the employee called “stretch objectives” The following are the objectives of A & M Reality that was captured and available in their latest annual report with their analysis based on the characteristic of objective settings 1. Gender Diversity Policy Corporate Governance Blueprint 2011 stated that the Board should ensure women participation on board to reach 30% by 2016. The Board does not have a policy on boardroom diversity, including gender diversity. The Company will provide equal opportunity to candidates with merit. Nonetheless, the Board will give consideration to the gender diversity objectives. Analysis: the above objective very specific on achieving gender diversity with measureable percentage target of 30% to be part of the board. This is percentage is not really challenging as there are many organization who achieve this figure, it could be due to the culture inside the organization. While, the language that was used to articulate this objective it indicate this is not really major objective, nevertheless a short timeline was given by 2016, which could be very challenging to achieve. 2. CAPITAL MANAGEMENT The primary objective of the Group’s and the Company’s capital management is to ensure that it maintains healthy capital ratios in order to its business and maximize its shareholders value. Analysis: this objective fall under financial objective. While it is specific to capital management, it is not quantifiable or measurable and

challenging to achieve and enable the company to go a higher heights. Additionally, there was no deadline to achieve it.

An extensive search was done to find additional objective using the following in annual report and other documents (“goal, company objective, business objective, etc) but with no success. A & M Reality did emphasize on quality, innovation and global standards, however those do not have clear objectives and timeline to be achieved.

Strategy To achieve the objective and move the company along the strategic course that management has charted. Strategy has to come from doing things differently from competitors (innovation, efficient, adapting faster, knowledge, etc) rather than running with the herds. There are four levels of strategy making, depending on the level of organization, that involve certain management level: 1. Corporate strategy (Multi-business strategy) 2. Business strategy (strategy for individual business that compete in a single industry) 3. Functional-area strategy within each business (e.g. marketing, R&D, logistics) 4. Operating strategy Going through A & M Reality Berhad annual report, website a summary of their strategy was not shared even though many organization due give a glimpse of it to their investors. Nevertheless, looking at A & M Reality Berhad Vision + Mission + Objectives it can be observed there is a lot of emphases on quality and innovation. While these is in every organization direction the question will be how A & M Reality will utilize it to become different from their competitors.