Chapter 2 - Analysis - Mission, Vision and Stakeholders Flashcards
What is a mission statement and what does it look like
MS is “a published statement of entitys fundamental objective, this may r may bot summarise the true mission of the entity”
Outlines orgs mission and sumarrises the reasoning and values that underpin its operations.
Drucher - Charateristics of a mission statement
Asked fundatmental questions
1) What is out business
2) What is valued by our customers
3) What will our bus be
4) What should our business be
mission - puporse
1) Communicate to all stakeholders
2) Help developed a desired corporate culture
3) to assist in strategic planning
Id Crititicisms of a mission statement
1) May not show actual values
2) oftern vaugues
3) can become outdated
4) often ignored
Vision Statements are longer term aspirations. What are issues
Same as mission statement
1) May not show actual values
2) oftern vaugues
3) can become outdated
4) often ignored
Objectives
Mission are open ended, objs are more specific
- Seek to translate mission into mileposts - should be SMART
What are the key issues with objective setting
- Ensure congruence with strategy
- prioritising objectives
- quantifying some (e.g environmental impact
- danger of short termism
- conflicting stakeholder objectives
What are primary and secondary objectives
primary (corp objs) - overiding objectives relate to org as a whole
Secondary - strategies set to meetin above then objectives of those strategies
MA’s role in objective setting
1) Help set objectives
2) monitor outcomes
3) Define SMART
4) Updating
5) seeing big picture (ensure congruence)
Consider Stakeholders and mission and objectives. What two interests must one keep in mind ?
- Need to be set with two interests in mind 1) those who carry them out 2) thos who focus on outcome
- Difficult to meet needs of all so must priortise based on power and interest
Actors (Braithwate and Drahos)
- Consider actors who may have an infleuence
e. g Orgs of states, states, orgs by firms (e,g chambers), NGO’s, mass public, etc
Mendelows Matrix - Draw it
image
Mendelows - sources of power
positional - position in org
2) Resource -
3) System 0- stakeholder with high visibility / political access
4) Expert - info, knowledge, expertise VIP to org
5) Personal - good comms / reputation
Applying mendelows matrix
Min effort - likely to accept what are told
- keep informed - need to convinve plans are right as risk joining parties with higher power
3) Keep satisfied
4) Key Players - participation is key
Resolving Competing Stakeholder Objectives (cyet and March)
1) Satisficing - negotiation between stakeholders
2) Seqential Attention - Focus on needs in turn
3) Side Payments - Where objectives cannot be met they are compensated
4) Exericse of power
Stakeholder Aliances
If via stakeholder analysis then match needs (must both benefit if to work)
What does non market strategy refer to
To relationship with non market environment e.g gov/ reg/ charities etc.
- Social and poliitcal considerations are nt just economic
- VIP to scan environment (Pest useful)
- May also with to be proactive via corporate political activity
Porters - how govs can influence an industry
1) capacity expansion
2) demand
3) divestment / exit
4) Emerging industries
5) Entry barries
6) competition policy
7) new product adoption (e.g drugs)
Johnson, Scholes and Whittington identified five styles of change management:
Education and collaboration - approach based on persuasion. Top-down approach. Appropriate when change is incremental. This style is time-consuming. It is suitable for dealing with Keep Informed.
Collaboration/participation - by using this style, you can bring in those affected by change. Through collaborations, the quality of the decision-making process may improve. This could also be time-consuming. It is suited for incremental changes and is suitable for dealing with Key Players.
Intervention - the change agent delegates some aspects of the change process to teams while providing guidance and retaining overall control. This builds commitment and a sense of ownership. It is suitable for dealing with Keep Satisfied.
Direction - a top-down style using a managerial authority. Suited for transformational change. It most likely brings resistance. It is suitable for dealing with Minimal Effort.
Coercion - an extreme form of direction based on the use of power.
Stakeholder types what are they
Managers and employees are internal stakeholders.
Shareholders, bankers, suppliers and customers are connected stakeholder groups.
Government and regulatory agencies, interest/pressure groups, industry associations and trade unions, and NGOs are external stakeholders.
