Strategic Management ( 6 questions)
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strategic_management_4.pptStrategic Management # 4
The Business Vision & Mission
- Importance of Vision
and Mission Statements - Developing a Vision
- Characteristics of a mission statement
Vision & Mission
Many organizations develop
both vision & mission statements
Essential for effectively establishing objectives and formulating strategies
Important to articulate “WHY”
http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html
Developing Vision & Mission
Clear mission is needed before
alternative strategies can be
formulated and implemented
Shared vision creates a community of interests
“The last thing IBM needs right now is a vision.” (July 1993)
Vision
What IBM needs most right now is a vision.” (March 1996)
-- Louis V. Gerstner, Jr., CEO, IBM Corporation
“We are limited, not by our abilities,
but by our vision.”
“What do we want to become?”
Vision
http://www.youtube.com/watch?v=a7Bnft23xsU
Starbucks
Agreement on the basic vision for which the firm strives to achieve in the long run is critically important to the firm’s success.
A Shared Vision --
- Creates commonality of interests
- Reduces daily monotony
- Provides opportunity & challenge
Vision
http://www.youtube.com/watch?v=ezVib_giTFo
Manslater
Vision
A vision statement is sometimes called
a picture of the company in the future
but it’s much more than that.
A vision statement is the inspiration,
the framework for all strategic planning.
Vision
The vision statement answers the question Where do we want to go?
When creating a vision statement - it is important to articulate the dreams and hopes for the business.
It reminds employees of what you are trying to build.
http://www.youtube.com/watch?v=0USn7eufXp
Microsoft
Vision
While a vision statement doesn’t tell you how you’re going to get there, it does set the direction for your business planning.
It’s important when crafting a vision statement to let your imagination go and dare to dream – and why it’s important that a vision statement captures your passion.
Vision
Unlike the mission statement, a vision statement is for the members of your company, not for your customers or clients.
When writing a vision statement, your mission statement and your core competencies can be a valuable starting point for articulating your values.
Mission Statements
- INTERNAL MISSION STATEMENT
- Major Emphasis /
- Goals for next 1-3 years
- Where Your Priorities Are Now
- EXTERNAL MISSION STATEMENT
- Markets Served
- Niche Differentiation
- Core Competence
- Competitive advantage
Mission Statements
- Enduring statement of purpose
- Distinguishes one firm from another
- Declares the firm’s reason for being
- OR A MANTRA!
“What is our business?”
Reveal what an organization wants to be and whom it wants to serve
Mission Statements
- Belief statement
- Statement of purpose
- Statement of philosophy
- Statement of business principles
Also referred to as:
Mission Statements of
Well Known Enterprises
Examples of mission statements from real enterprises.
Mary Kay Cosmetics
"To give unlimited opportunity to women."
Merck
"To preserve and improve human life.
Walt Disney
"To make people happy."
Importance of Mission
Benefits from a strong mission
http://www.youtube.com/watch?v=Fua2VgwHveE
Mission
Resource Allocation
Unanimity of Purpose
Organizational Climate
Focal point for work
structure
Effective Mission Statements
3M
To solve unsolved problems innovatively
Google
To organize the world’s information and make it universally accessible and useful
- Anticipates customer needs
- Identifies customer needs
- Provides product / service to satisfy needs
Mission & Customer Orientation
An Effective Mission Statement
- Affects development of vision & mission
- Responsibilities to –
- Consumers
- Environmentalists
- Minorities
- Communities
- Employees
Social Policy & Mission
Managerial philosophy shapes social policy
Social Policy & Mission
Social policy should be integrated in all strategic-management activities
Mission should convey the social responsibility of the firm
