1 - 3 Business Strategy and Goals and Evaluations

[Procedure of setting up a business strategy]

1) Setup/confirmation of the company vision Clarify the form (i.e., direction) that a company must have on the basis of the management philosophy.

2) Analysis of the business environment Clarify the position of a company in the market and consumer needs, and also the relationship with competitors.

3) Creation of the business strategy

Define the strategy objectives and clarify the specific strategy at the business operations level.

4) Extraction of CSF (Critical Success Factor) Clarify the CSF (Critical Success Factor) that has a definitive impact on the achievement of strategic objectives. · 1 question

5) Setup of an implementation plan Set up a concrete implementation plan for accomplishing the objectives. At this time, set up the two indicators for evaluating the level of accomplishment of objectives, and create an evaluation plan as well.

• • KGI (Key Goal Indicator)
  This is an indicator for quantitatively evaluating the level of accomplishment (i.e., result) of objectives. It uses the sales volume, profit margin, number of agreements, sales quantity, and so on.
• • KPI (Key Performance Indicator)
  This is an indicator for quantitatively evaluating the means (i.e., process) of accomplishing objectives. It uses the number of references, the number of customer visits, the number of claims, and so on. Note: According to another method, the specific strategy for accomplishing the CSF that is extracted in step 4 is taken into consideration in step 3. The order of the two is reversed here.

• • Needs/wants analysis
  The consumers’ needs (i.e., things whose absence would create a problem, and indispensable things) and their wants (i.e., things whose absence would not create a problem, but where possessing them would be beneficial) are surveyed and analyzed.
• • Competitive analysis
  The technologies, knowhow, financial status, share, and selection of goods (i.e., product lineup) of competitors are surveyed and analyzed.
• • Positioning analysis
  The relative positioning of the products and services of a company in the market is surveyed and analyzed.

• • VE (Value Engineering)
  This is a strategy (or technique/activity) of analyzing the value of products and services, and working toward an improvement in the value with the lowest cost according to a systematically organized procedure. It is a coordinated activity that clarifies the functions that are required by customers and improves the value without affecting the performance, reliability, and quality.
• • TQM (Total Quality Management)
  This is a management technique (or strategy) according to which TQC (Total Quality Control) is applied to the management strategy and reflected in business operations and management. It uses Six sigma, which controls the variation by using the standard deviation σ (sigma) that represents the variation and sets the range from the center of normal distribution up to 6σ as the upper-limit value and the lower-limit value. · 2 questions

• • BSC (Balanced ScoreCard)
  This is an evaluation technique that a wide-range evaluation standard is set, and it clarifies difficult-to-evaluate aspects, such as the level of satisfaction of customers and the intention of employees. The CSF, KGI, and KPI matching the strategy of each individual and department are set by using the “financial perspective (past),” “customer perspective (external)”, “business process perspective (internal),” and “learning and growth perspective (future).” And then monitoring is performed according to the PDCA cycle. On the basis of the result, the following are promoted: improvement in business processes, improvement in the skills of individuals, and improvement in the business operations of the company. · 2 questions

Enlarge original visual

Source visual description

The original diagram places Vision/strategy at the center and the financial, customer, business process, and Leaning and growth (spelled this way in the original diagram) perspectives around it. Original arrows, financial/non-financial labels, internal/external and past/current/future directions remain in the crop.

• • Scoring model