EXCPR™: Strategic Purpose

Wednesday, October 11, 2017

Strategic Purpose

Fundamentals of Strategy/Strategic Purpose/ English version

Strategic Purpose

The strategic management tools for sustainability and competition

Most of the modern companies are aiming to maximize their revenue in short period, in addition to expanding into the global markets. In this regards, and how to achieve that, EXCPR™ for consultancy and business management firm initiate this article to its current customer and future clients.

This article is analyzing the corporate strategic purpose in details, which is working on the subject of presenting the company in such market. Also, it discusses the objective of such company in the environment. Therefore, strategic purpose is containing three major sections which are, governance structure, stakeholder expectation and the social responsibility.

· Governance Structure

The governance structure is the responsibility of the management directors in the corporation, to satisfy the stakeholder requirement. This satisfaction level could be achieving by build strong rules and regulation, in addition to the process control system. Therefore, the management is requested to have such structure to be able to differentiate between the ownership and the management level, in addition to control and follow up. From another hand, the governance structure part in the strategic purpose can be created either throw on of the following model – Shareholder model or Stakeholder model – as it shown in the below table.

· Stakeholders expectation

The stakeholders are those individual or corporate which they may affect during the company’s activities. Some example for the stakeholder is customer, supplier, competitor, government, employee, union, owners. Bank, … etc. Thus, it is the objective of the management director for observe the stakeholder needs and requirements frequently.

· Social Responsibility

The third element in the strategic purpose for the company is discussing the ethics and its social responsibility- CSR – in which the organization undertakes to meet the minimum needs of stakeholders and regulations. One aspect of the social interest of the company is by deduction part of its profits to the social activities in order to achieve loyalty. For example, some institutions in the state of Kuwait reach such step, by contribute to the construction of specialized hospitals with the public sector, providing jobs, providing scholarships for student and others.

Finally, the above three elements combine with each other – governance structure, stakeholder’s expectation, and the responsibility towards the community, which entails the formulation of the overall strategic foundations on which the institution works, and providing them systematically to those interested in the affairs of the institution and stakeholders. Through these results, the executive management can formulate the vision and strategic objectives that it seeks to reach in the long term. The corporate mission can be formulated – as well- and the main reason for its existing in the market. Through these guidelines, the executive management will have to rely on some of the corporate values and principles that will not exceed them in any way during its operation. For example, such corporate values can be consider as critical values for some of the US companies - such as Disney and General Electric - GE. On the other hand, the choice of each of these strategic tools - mission, vision, and values - will generate the necessary passion among stakeholders to work in the interests of the institution.

Key worlds:

strategic purpose – corporate governance – governance - stakeholder expectation – stakeholder – shareholder – company – social responsibility - ethics – CSR - Saudi – Saudi Arabia – vision – mission – values – corporate values.

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