MGMT90146 STRATEGIC MANAGEMENT
STRATEGY STATEMENT
Guidelines
TASK
You are a top management team appointed to manage a company resulting from the splitting of
Sensors, Inc., that was shut down due to monopolistic operations. You have been appointed for 6 years
and, at the start of your tenure, you are required to provide the Board of Directors with a Strategy
Statement that outlines the strategic direction you intend to pursue over the 6 years of your tenure
and, specifically, how you intend to pursue it over time.
In particular, in your Strategy Statement you should first declare your firm’s Mission, Vision and
Values. Then, you should declare your overall strategic approach and the key specific functional
decisions that you intend to take over the 6 years of your tenure in order to implement your overall
strategic approach. Lastly, you should select and weight the success criteria you would like your firm’s
performance to be measured against. Importantly, all your strategic choices should be coordinated
and coherent, resulting in an internally consistent Strategy Statement.
Specifically, your Strategy Statement should address the following questions:
▪ What are your firm’s Mission, Vision and Values?
NOTE: You should formulate your firm’s values in line with your Mission and Vision
statements and intended strategy.
▪ What is your firm’s intended strategy?
o e.g. what segments are you aiming to compete in?
o On what basis will you compete (i.e. what is your generic strategy)?
o Will this be consistent across segments, or will you adopt different strategies in each?
And why?
o How will this strategy play out over time, i.e. will your intended strategy include a
dynamic element? For example, if you choose to focus, you need not do so
immediately. As a result, you might intend to gradually withdraw from certain
segments and thus discuss something like a “gradual focus strategy”.
NOTE: When addressing these questions, you can refer to Capstone’s six basic strategies,
i.e. Porter’s four generic strategies and Capstone’s specific Cost Leadership with Product
Lifecycle Focus and Differentiation with Product Lifecycle Focus. Alternatively, you could
simply describe what you intend to do, as long as you indicate some clear intentions
regarding how you intend to compete in the sensor industry.
▪ Why do you think your overall strategic approach is a sound strategic choice?
o i.e. what is the justification?
▪ How will you support this strategic approach at a functional level?
o i.e. what will you do in terms of R&D, Marketing, Production, Finance and HRM to
implement your intended strategy?
MGMT90146 STRATEGIC MANAGEMENT

▪ What are your chosen success criteria and their respective weightings? (these could be placed
in a table within the Strategy Statement and must also be entered onto Capsim). How do they
relate to your choice of strategy?
NOTE: Within the Capstone simulated environment, each team must select among eight
possible performance criteria:
1) cumulative profits (required)
2) market share by value ($)*
3) ROA
4) ROS
5) ROE
6) asset turnover
7) stock price
8) market capitalisation
*Please note that market share refers to the firm’s share of the entire industry (in $) rather
than share for your chosen segments only.
A minimum of four criteria must be selected. Cumulative profits must be one of the chosen
metrics, with a minimum weight of 20%. The maximum allowable weight for any single
measure is 30%. The other criteria chosen must be between 10% and 30% in weight. Your
weights must add up to 100%.
For a full definition and overview of the success criteria, see Homework > Success Measures
on the Capsim site. This page also features hints regarding which criteria may be particularly
compatible with given strategies.
You must identify your chosen criteria and weights in your Strategy Statement, and also enter
them on the Capsim site at Homework > Success Measures > Input by the Round 1 decision
deadline.
FORMAT

The Strategy Statement should be written as a clear, concise business document, using full sentences
(dot points can be used only to list ideas and/or issues that you will explain or have explained).
The document should be professionally presented and well structured, including a Table of Contents
and relevant headings and subheadings such as “Intended Strategy”, “Marketing Function”, “R&D
Function”, etc.). No Executive Summary is required.
The submission must be no more than 1,200 words in length (excluding cover sheet, bibliography and
appendices).
The submission cover sheet should include:
▪ your industry number (i.e. C107254, C107255, etc.)
▪ your company name (i.e. Andrews, Baldwin, etc.)
▪ all team members’ names and student IDs
▪ an accurate word count
MGMT90146 STRATEGIC MANAGEMENT
SUBMISSION
The Strategy Statement is due the day before your Week 6 workshop (via the LMS).
Late submissions will attract a penalty of 10% per day of the total mark available.
Specific submission instructions will be discussed in class and made available via LMS.
MARKING RUBRIC
The Strategy Statement is worth 5% of your total mark in the subject and will be assessed based on
the marking rubric below:
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Effectively formulates Vision, Mission and Values
Clearly identifies intended strategy with reference to theories from class
Strongly justifies intended strategy, including demonstrating its alignment with the
declared Vision, Mission and Values
Highlights implementation priorities in all functional areas
Clearly identifies cross-functional linkages
Demonstrates links between intended strategy and implementation decisions at the
functional level with reasonable links to theories and concepts from class
Makes logical, well-argued links between intended strategy and chosen success
measures
Presents a logically structured, professional-looking document, with a consistent voice
Demonstrates suitable grasp of grammar, spelling & punctuation