The paper 'Strategy Process of Anheuser-Busch Inbev, Virgin Airways and British Council " is a good example of a management case study. This paper analyzes whether Strategy processes in private sector organizations are similar to the strategy process in public sector organizations, with three effective examples, namely two organizations from the private sector and one organization from the public sector. It analyzes the strategy process of Anheuser-Busch InBev, Virgin Airways and British Council through Porter’ s Five Force Model and Balanced Scorecard. After thorough analysis and arguments, the paper concludes that there are many similarities in the strategic management processes between private and public sector organizations as both have the same goal or aim, which is customer satisfaction although the outcomes are different.
Public sector organizations have outcomes that include socio-economic change and societal betterment. Private sector organizations have customer satisfaction, gain in market share and revenue increase as the main outcome. Despite this, the fact remains that strategy processes are similar in both sectors as the aim or goal is common. Strategy Processes in the Private Sector and Public Sector Organizations. Introduction “ Strategic Management is the conduct of drafting, implementing and evaluating cross-functional decisions that will enable organizations to achieve its long-term objectives. ” (David, 1989).
The strategic management process varies widely from company to company. Public and Private sector managers function in different contexts that generate distinct constraints on their behaviours, choices and actions. Ring and Perry (1985) have identified five specific differences in strategic management between the public and private sectors. Firstly, policy ambiguity can be clearly seen in public sector organizations. Since the general management functions of the government are spread across constitutionally across federal, state and local branches with more than one legislative body, to prevent the concentration of power, it often results in vagueness and ambiguity in policy and objectives of the company.
In contrast, private sector organizations function within a framework of a relatively clear and stable set of goals such as growth, profits and market share.
Anheuser-Busch InBev. About AB InBev. Anheuser-Busch InBev Website. Retrieved July 15, 2009. http://www.ab-inbev.com/go/about_abinbev.cfm
British Council (2008). Corporate Plan 2008-11. British Council website. Retrieved July 15, 2009. http://www.britishcouncil.org/new/Documents/126.96.36.199%20Corporate%20Plan%20-%20vision,%20purpuse%20and%20values%20-%20Who%20we%20are%20-%20British%20Council.pdf
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Virgin Airways. About Virgin. Virgin Group Website. Retrieved July 15, 2009. http://www.virgin.com/about-us/
Value Based Management. Balanced scorecard. Value Based Management website. Retrieved July 15, 2009. http://www.valuebasedmanagement.net/methods_balancedscorecard.html
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