-Also known as strategic objectives (s.p.o)
-These are those project objectives which are long to medium term in nature and which are intended to exploit firms opportunity and strengths and to handle firms weakness and threats .
Characteristics Nature of Strategic Objectives (general)
i)They are long to medium term in nature
long term -3 and more years
medium term -more than 1 yr but less than 3 yrs .
ii)Are intended to exploit opportunities and strengths
iii)They are intended to handle or deal with weakness of a firm or threats and may face a
iv) They are overall or applying for a company as a whole
v)They are linked to a corporate vision and mission values and policies
therefore strategic objectives just like strategy enables a firm to match its internal
factors /environment with external environment.
strength matching opportunity
weakness Aligning threats
How strategic Objectives are set
They are set by conducting conducting SWOT analysis,in swot analysis we consider the internal forces & relate them with the external forces .
Steps in setting strategic obligations
1.Define the corporate vision,mission,values and policies
2.Do swot analysis,look at strength,weaknesses,opportunities and threats
Conducting swot analysis
steps of conducting
1.Identify the company and project for which you want to carry out a SWOT eg ministry of education ;free primary education ,Chinese construction firm ,WUY,Thika road rehabilitation project .
ii)To study company-internet,newsletters,interviews
iii)Draw SWOT analysis table or matrix
Swot table has 4 components
Strengths: Explored company to build its capacity to exploit opportunities therefore strengths are derived from positive internal environment factors (corporate vision, mission, values, policies, goals, strategies, structure, system, resources, staff, management team ,culture and shareholder they are internal but positive.(I+)
Weakness : Unfavorable internal conditions that disable the company from building its capacity to exploit opportunities therefore weakness are derived from negative environmental factors .(I-)
Opportunities :Favorable external conditions or conditions that a company can use its strength to exploit in order 2 grow or prosper in future therefore opportunities are derived from positive external environment conditions (E+).This include the immediate environmental (micro ) & the macro environment .
Content of Immediate /Task Environment .
viii)Regulatory authority (e.g NEMA)
ix)Pressure grounds (Trade group cotv)
ix)D PP-political parties
Content of Macro environment
- I) Political and legal
Threats ;Unfavorable external conditions that a company can use its strengths to exploit in order to prosper.(E-).They reduce the company’s ability to grow or expand & if not handled ,may lead 2 bankruptcy or collapse of a company.
Therefore threats are derived from negative external environmental factors.
N/B SWOT ANALYSIS TABLE/MATRIX FOR WUYI CHINEESE CO.AND THE READ REHABILITATION PROJECT FOR YEAR ENDED 31/12/2012
I. Competent and experienced management team
committed & humble supervisory staff
iii)Highly advanced equip & tools
iv) Use innovative & creativity
v)efficient and effective control system
ix)posses adequate financial capability
x)Down to earth financial capability
I. Low pay leading to high labor turnover among est the causes
ii. Over indulging with Kenyan people
iii)Untrained manual laborers
|I. Kenya new structure of government that allows countries to spend on structures .
iii. The +ve Kenyan – Chinese govt diplomacy
iv. Renewal of E.A.C (Revival )
v. Increased CDF
vi. Extension of Kenyan Local Road constructors
vii. Extension of European and American and German co. company’s
viii. High rainfall that wipes out roads
|I. Political stability
ii. Economic depression
iv. Threats of new legislation favoring local contractors .
v. Threats from the west (world bank)