 |
 |
|
|
The return of Hong Kong to the motherland and the Asian crisis during the last two years dealt two hot cards to an economy previously viewed as the financial centre of Asia, Asia's tourism capital, and the best place to do business in Asia. In strategic terms, both of these two issues can be viewed as external "Threats" in a classic SWOT analysis - potentially damaging unless sublimated or turned into opportunities. Ignore the convoluted academic-jargon title. While the article does have sound theoretical foundations, the strength of the piece is a fully worked through SWOT analysis of Hong Kong. ..And incorporates the Art of War approach of Bing Fa theorist Sun Tzu as well (a popular approach indeed as the application of ancient military strategy models to current situations by Asian scholars has been featured regularly in this place and others on the APMF in the past few years). Hong Kong DID suffer an identity of crisis post-handover. The glamour appeal as the most significant remaining European colony was lost and concerns continued on the negative influence of Beijing rule, despite the "One country - two systems" rhetoric. The televised image of the mainland police and military entering Hong Kong in the early hours of June 30th, sitting rigidly upright in orderly bus convoys remains strong in the minds of the international TV audience that saw it, far after the glitz and fireworks of the shindig down South in Central receded, saw to that right from the start. The Asian crisis dealt tourism and business travel a body blow, while the closest competitor for the best business hub mantel in Asia - Singapore - seemed to go from strength to strength. Since then Hong Kong has survived several major controversies relating to autonomy, and the tourist industry has recovered, certainly in terms of tourist arrivals but not so much in revenue per arrival, as previously inflated and never likely to be sustained accomodation rates took a tumble. The major opportunity however, to cast Hong Kong in the light of a gateway to the newer sparkling bright lights of an ever-expanding and stable Chinese economy, remains on the edge. While an English speaking and international-business savvy Hong Kong has considerable competitive advantage, now the threat is not so much from Singapore, but from a mainland China that shows every sign that one day in the not-so-distant future launching straight into the mainland rather than through an intermediary will make strategic sense. This fine example of the intelligent use of management models and theory to produce the genesis of a workable and practical strategy not for a business, but for one of the world's most dynamic but threatened economies is well worth the download. Building a balanced scorecard with SWOT analysis, and implementing "Sun Tzu’s The Art of Business Management Strategies" on QFD methodology (276 Kbs PDF file) S.F. Lee, Hong Kong Institute of Vocational Education, Vocational Training Council, Hong Kong, China, and Andrew Sai On Ko, International Management Centre, Oxford Brookes, UK Managerial Auditing Journal, Vol 15 (1/2) 2000; pp. 68-76, MCB University Press, ISSN: 0268-6902 Conjoining the SWOT matrix with the balanced scorecard (BSC) makes a systematic and holistic strategic management system. The SWOT matrix clearly identifies the critical success factors that can be implemented into the identification of the different aspects toward the balanced scorecard. It is, therefore, a more structural approach in setting up the foundation of the balanced scorecard; instead of simply identifying the “key performance indicators” (KPI) via gut feeling or by brainstorming. The next step of the whole process is to make use of the quality function deployment (QFD) methodology with the balanced scorecard (BSC) attributes identified as the “Whats” on the vertical axis, and the major strategies of “The Art of Business Management” Sun Tzu’s as the horizontal “Hows” axis. The relationships are then studied in the body of the QFD matrix. Consideration is then given as to how the model presented can be customised to allow companies using this approach to develop and implement their corporate business strategic plan.
Keywords: SWOT analysis, balanced scorecard, Quality function deployment, Strategy, Strategic planning, Total Quality Management (This article was featured as the APMF article of the month in July 2000)
|
 |
© Asian Business Strategy & Street Intelligence Ezine 2000
The views expressed here may not necessarily reflect those of partners, publishers, editorial board nor sponsors of the Asia Pacific Management Forum
| email updates | email this page | discuss | search | today's asian business strategy news | advertise | about |
| daily asian news, research & commentary for the international business strategy, market research & strategic management professional |