strategic planning process ford company between 1978 – 1982 had lost her market shares to the tune...

STRATEGIC QUALITY PLANNING

STRATEGIC PLANNING PROCESS• Ford company between 1978 – 1982 had lost her market

shares to the tune of 3billion dollars • Study had revealed that, the causes of these losses is due

adherence to conventional type of quality management system and orthodox perfection programs

• The company sought the advice of Dr.Deming • Who advocated the importance of management, cultural

change, and senior management’s vision • He suggested the following to the management:

Emphasis on quality and review of new product planning and design Continues investment in new products and processes Making employee relations a source of competitive advantage


• Strategy _ A general plan or set of plans intended to achieve something, especially over a long period

• Tactic _ A method that you chose to use to achieve what you want in a particular situation

• It is an established fact that the key to competitive success is improvement of quality. Which is not enough for Japanese strategist, as they are now moving ahead from:-• TQM to Zero Defect Management• Leadership in technology, marketing and management ( brain

capital )


◦ Access to the knowledge, and investing on foreign students ◦ Exercising proprietary rights over knowledge - acquired

through foreigner employees◦ Own research institutes within the organization to

disseminate knowledge to the concerned group or management

◦ Reorganizing R&D with the objective, ‘’ The faster we can abandon today’s new product, the stronger and more profitable we’ll be ‘’ is the new motto

◦ Thereby meaning that, immediately going to work on replacing it on three tracks i.e. Kaizen, Leaping _ developing a new one out of the old finally moving to Zero defect


STRATEGIC PLANNING PROCESSMost of the companies attribute their success to a Quality based strategy through:• A formally structured approach that helps planning a

strategic decision by Top Management, concentrating on every facet of the business How to compete What are the goals, and What all policies are needed

• How ever the primary strategy remains to achieve and maintain competitive advantage through

• A systematic look at organization, how each part interrelates to the whole process and

• Demanding continuous improvement as ‘a way of life’


STRATEGIC PLANNING PROCESS(cont.)A Harvard Business School based policy group describes the pattern of a corporate strategy as:

a. It determines, shapes, and reveals its objectives, purposes, or goals

b. Produces the principles polices and plans for achieving these goals

c. Defines the business the company intends to be ind. The kind of economic and human organisation it intends

to bee. The nature of the economic and non-economic

contribution it intend to make to its shareholders, employees, customers, and communities


Strategic Quality Management• The pattern of goals, policies, plans, and human organisation are

likely to be in place over a long period of time, therefore effects the organisation in following different ways:i. The culture that guides members of the organisation and other stake holdersii. The position that it will occupy in an industry and market segmentiii. Determining particular objectives and allocating resources to achieve them

• All follow from the decision processes determined by strategy• The pervasiveness of a given strategy can be measured through

the developed plans and the communication achieved• A basic rule of strategic planning is that structure follows

strategy


Strategic Quality Management The strategic positioning process in an environment involves

placing yourself against forces in a way that action plan can minimise your weakness and take advantage of your strengths

The relative strength with competitors is Quality, which is the means of differentiation for the satisfaction of customers needs

Additionally, firms with superior quality addresses quality offensively , while firms with inferior quality treat it defensively

Following are the components of strategy:-a. Product/ market spaceb. Competitive edge(differentiation)c. Supporting policyd. Objectivese. Organizational culture


MISSION ‘meet the needs / values of constituents’ A mission is promulgation of objectives by statements as to

how it will be implemented for each stakeholder e.g.‘’ Our mission is constant improvement in products and

services to meet our requirement’’ Basically, it translates the commitment of entire

organization in the direction the company intends to move The major determinant of a mission is the environment in

which the firm plans to operate As trends and changes unfold in that environment, strategy

ensures positioning and adjusting oneself accordingly Thus it is important to identify trends in an environment

and how it influences the strategy of the firm


PRODUCT / MARKET SCOPE Q. What am I selling and to whom am I selling it? A company does not sell shoes or soap or banking services It sells value to a particular segment of the market What is value? It is what customer says, therefore, each company must

define its market segment and customer value in that segment

Because a particular quality of item can not be sold alike in different segments of market, rather quality is defined differently for a different segment of the market


DIFFERENTIATION Why should I buy from you? Uniqueness of Product and quality Service are termed as

differentiation These are the two major forces that gives competitive edge

in market place and in international trade Term uniqueness does not mean the physical product or in

its marketing practices Rather those attributes in ‘quality and value’ that meet the

needs of the largest number of consumers at an acceptable price


OBJECTIVES A strategy often fails to implement, when it lacks to have

an action plan based on objectives which is a prerequisite for following a plan. In this regard, the concept of Management By Objective

( MBO ) identifies eight key areas for which objectives (functions of business) must be set

1. Marketing (market share) 6. Financial resources 2. Innovation (new product) (capital structure )3. Human organisation 7. Social responsibility 4. Physical resources 8. Profit requirement5. Productivity(output per employee)


SUPPORTING POLICIES A strategy is nothing without an objective Similarly, for the attainment of objectives, policies or action

plans are made as guidelines for action and decision making

The delineation of mission, differentiation and objectives forms the nucleus of a business

While the activities like marketing, HRM, productivity etc. are the functions of the business

Each function needs supporting policies to achieve the targets defined in nucleus

The supporting policies determine what activities to perform and how to perform them?


CONCLUSION

Adherence to quality has become an important subject for corporate/national interest. Those not implementing it will not be able to compete effectively in the market. Embedding TQM in strategic planning from objectives to supporting polices eventually leads to success, that basically means customer’s value for the product and services, and carefully implementing a quality based culture


strategic planning process ford company between 1978 – 1982 had lost her market shares to the tune...

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