Strategic Management
I. Executive Summary
Strategic management has been given significant attention for this few decades, because of its mass contribution to the success of the company’s long term goal. The word “Strategy” has its roots of military science, deriving from the Greek’s word “Strategos” meaning plan the destruction of one’ enemies through effective use of resources.” (Calingo, n.d, as cited in Ting, 2012a, p. 8).
A successful company has a very practical strategy. NIRON ADEC, one of the microfinance institutions in Cambodia, also has its own weapon – the strategy – to compete in this market. In 4 years time, NIRON has 41 branches located all around Cambodia, with 925 staffs, 53,120 clients, and a gross loan portfolio of over USD 5,000,000.
For 2012 strategy, NIRON wants to be the easiest accessible financial product to all customers around Cambodia. With this view, NIRON has a very clear vision and mission, objective, and SWOT analysis. It has decided to shape their focus on three points in order to achieve their objectives which are to expand their operational coverage to 45 branches, use a direct collection and disbursement method, and to be the fastest loan provider. In doing so, they have uses the following tools: * Opening new branches * Developing new policies and procedures * Training and recruiting people
After implementing the strategies NIRON has met most of its objectives. This happens because the strategic makers understand well where they are and where they want to be in the future and they have come up with a very competitive strategy which is to provide the most convenient services to customer. Despite having met their objectives, a few flaws have been found. Firstly, it has been operated with a very high operational cost and a poor productivity rate. Secondly, they have not considered about their resources limitation before implementing the strategy, which leads to a low staff capacity and low productivity. In addition, they do not even
Strategic management has been given significant attention for this few decades, because of its mass contribution to the success of the company’s long term goal. The word “Strategy” has its roots of military science, deriving from the Greek’s word “Strategos” meaning plan the destruction of one’ enemies through effective use of resources.” (Calingo, n.d, as cited in Ting, 2012a, p. 8).
A successful company has a very practical strategy. NIRON ADEC, one of the microfinance institutions in Cambodia, also has its own weapon – the strategy – to compete in this market. In 4 years time, NIRON has 41 branches located all around Cambodia, with 925 staffs, 53,120 clients, and a gross loan portfolio of over USD 5,000,000.
For 2012 strategy, NIRON wants to be the easiest accessible financial product to all customers around Cambodia. With this view, NIRON has a very clear vision and mission, objective, and SWOT analysis. It has decided to shape their focus on three points in order to achieve their objectives which are to expand their operational coverage to 45 branches, use a direct collection and disbursement method, and to be the fastest loan provider. In doing so, they have uses the following tools: * Opening new branches * Developing new policies and procedures * Training and recruiting people
After implementing the strategies NIRON has met most of its objectives. This happens because the strategic makers understand well where they are and where they want to be in the future and they have come up with a very competitive strategy which is to provide the most convenient services to customer. Despite having met their objectives, a few flaws have been found. Firstly, it has been operated with a very high operational cost and a poor productivity rate. Secondly, they have not considered about their resources limitation before implementing the strategy, which leads to a low staff capacity and low productivity. In addition, they do not even
References: 1. Hubbard, G. and Beamish, P., 2011. Strategic management: Thinking, analysis, action. 4th ed. Australia: Pearson Australia. 2. NIRON ADEC, 2012a. Organizational overview report. Phnom Penh: NIRON ADEC. 3. NIRON ADEC, 2012b. 2012 Strategic Plan. Phnom Penh: NIRON ADEC. 4. NIRON ADEC, September, 2012a. Monthly master financial report. Phnom Penh: NIRON ADEC. 5. NIRON ADEC, September, 2012b. Monthly strategic report. Phnom Penh: NIRON ADEC. 6. Ting, L. P., 2012a. Strategic management, MGT510 Strategic management. Charles Sturt University, unpublished. 7. Ting, L. P., 2012b. Implementing strategy: Resources, capabilities and structure, MGT510 Strategic management. Charles Sturt University, unpublished. 8. Ting, L. P., 2012c. Implementing strategies: Management & operations issues, MGT510 Strategic management. Charles Sturt University, unpublished. 9. Ting, L. P., 2012d. Creating strategy-focused organizations using the balance scorecard, MGT510 Strategic management. Charles Sturt Univeristy, unpublished. 10. Voljoen, J., 1994. Developing a strategic plan. In G. O’Neill, ed. 2009. Strategic management. New South Wales: Charles Sturt University. Reading 1.6.