strategic management-chapter2

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Background of Study

Objectives of Study

Significant of Study

Limitations of Study


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Global competitive market The effect ofeconomic downturn (2008-2009)

The uniqueness of a company should be shown

through vision and mission statement

Vision and Mission Statement

Definition Directions


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.

To identify the key components of mission statement of

company listed on the Malaysian Stock Exchange.

To determine whether the mission statement exhibit the key

components of good mission statement

To know the relationship between mission statement andfinancial performance.


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1. Large Established Companies

Provide the guidelines to the company inorder to alert them about the relevance

behind their vision and mission statement

2. Small MediumCompanies

As reference in order to know the

strategies that were used by thelarge companies.

3. Academic Researcher

Provides a basis for furtherresearch regarding the formationof vision and mission statement


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Confidential of Data

Narrow Scope of Study

Inappropriate waycollecting data


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One of the major industry that significantly contribute in ourcountry production.

A general trend towards increasing product variety has beenobserved across many industries, as diverse as fashion (Fisher et

al., 1994), computers (Bayus and Putsis, 1999), fast movingconsumer goods (Quelch and Kenny, 1994) and automotive (Piland Holweg, 2004).

This trend is driven by the growing importance of providingcustomer choice in competitive settings, where offering product

variety is supposed to create a competitive advantage (daSilveira, 1998; Pine, 1993).


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Consumer Products

Companies

Bursa Malaysia StockExchange

- 143 companies-

FTSE Bursa

Malaysia KLCI-Benchmark ofStock Market-

Example

Ajinomoto (Malaysia) IQ Group Holdings

Apex Healthcare Bhd Jaycorp

Cab Cakaran Corp

Bhd

Kawan Food Berhad

Cck Consolidated

Holdings Berhad

Kuantan Flour Mills


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Mean and Standard Deviation


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Companies Financial Performance

Industry Average:\Industry Average.docx

Industry Average:\Financial Chart.docx
http://e/Industry%20Average.docxhttp://e/Financial%20Chart.docxhttp://e/Financial%20Chart.docxhttp://e/Financial%20Chart.docxhttp://e/Financial%20Chart.docxhttp://e/Industry%20Average.docxhttp://e/Industry%20Average.docxhttp://e/Industry%20Average.docx


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8%8%

12%

5% 5%4%

1%

10%

6%

1%

5%

2%

-7%

9%8%

10%

8%9%

-5%

7%

4%

0%

19%

-2%

6%

-4%

8%

-10%

3%

9%

2%

-3%

12%

2%

4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4%

RETURN ON ASSETS (ROA)CONSUMER PRODUCT INDUSTRY

ROA IA-ROA


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10%

16%16%

5% 6%

8%

1%

22%

13%

4% 5%

31%

-41%

10%

18%

14%

10%11%

-12%

9% 10%

0%

30%

-14%

9%

-9%

16%

-18%

3%

25%

6%

-4%

15%

7%7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7%7%

RETURN ON EQUITY (ROE)CONSUMER PRODUCT INDUSTRY

ROE IA-ROE


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-20.00

0.00

20.00

40.00

60.00

80.00

100.00

120.00

LTKM

MALAYAN

MAMEE

MINTYE

NIHSIN

PADIBERAS

PROLEXUS

QL

QSR

CAB

EUROSPAN

DUTCH

D.B.E

CLASSICC

.I

APEX

CCK

AJINOMOTO

TAKASO

UPA

YEELEE

YENGLOBAL

HOMERITZ

HOVID

JAYCORP

KUANTAN

F&N

GOLDEN

GOLDIS

GUANCHONG

HWATAI

IQGROUP

KAWANFOOD

LAYHONG

EARNINGS PER SHARE (EPS)CONSUMER PRODUCT INDUSTRY

EPS

IA-EPS


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The link between the development of mission statement by

organization and their financial performance is not conclusive

based on researchers.

Doubts exist about how authentic the mission statements are and

how far they are enacted, and how close the rhetoric is to reality

(Coulson - Thomas, 1992; Nash, 1988; Pfeffer and Sutton, 1999b).

Mission statement does not contribute to the performance.

Supported by Azaddin (2011), the results of most studies are

based on the association between organizational performance and

the mission statement that does not necessarily mean a cause and

effect relationship.


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The mission statement might help to give some guideline and

directions to the companies but it does not promise anything

that brings a positive impact to the company. Some clearly

concluded that there is no significant relationship between the

two (David, 1989; Klemm et.al, 1991) and some have found

weak link

the relationship that we forge with our supplier partner are

key to ourteams agility, integrity and competitiveness, and our

ability to meet ourcustomersneeds

Boeing


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Mission statement is important but the

companys main concern should focus more on

the strategies that can help to improve financial

performance of the company.

Conclusion


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THANK YOU

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strategic management-chapter2