Chapter 4

Question 1

What are Mission and Vision Statements

Answer 1

They both relate to an organizations purpose and are typically communicated in a written form. The two statements are often used as management tools.

Question 2

Friedman Belief

Answer 2

Milton Friedman believed that ‘Do Goods actually do harm’ and that private markets should be left to regulate themselves. He believed that by following the invisible hand, private firms will internalize the externalities imposed on society.

Question 3

Freeman

Answer 3

Freeman believed that all firms have the responsibility to adhere to their shareholders and that firms cannot simply follow their own private incentives, they must think about the greater whole of society.

Question 4

Stakeholders

Answer 4

Stakeholders are individuals or groups that have an interest in an organizations ability to deliver intended results and maintain the viability of its products are services.

“Any group or individual that can affect or be affected by a companies purpose, they are factors in an organizations environment.”

Question 5

Environment

Answer 5

An organizations environment can be categorized as the the micro (competitive) and macro (institutional) environment forces that influence the organization.

Macro –Influences–> Micro —Influences–> Organization

Question 6

Factors in Micro-Environment

Answer 6

Buyers, 
Suppliers,
 Customers, 
Competitors, 
New Entrants
 Substitutes.

Question 7

Factors in Macro-Environment

Answer 7

Rules/Laws/Policies,
Social Norms and Values
Demographics
Technology
Economy

Question 8

Mission Statement

Answer 8

This characterizes an organizations reason for being, what is its purpose, and how does it aims to serve its stakeholders.

“What is an organizations purpose for being.”

Question 9

Values

Answer 9

The beliefs that an individual, a group or organization adheres to and in which they are emotionally invested.

Question 10

Vision Statement

Answer 10

A future oriented declaration of the organizations purpose and aspirations

“Based on that purpose, what do you want to become?”

Question 11

Mission Statement: Objective

Answer 11

Stake our and clearly communicate an organizations domain.

Question 12

Mission Statement: Form

Answer 12

A brief statement that often lists philosophy, technology, key stakeholders, products and services, businesses and self concept

Question 13

Vision Statement: Objective

Answer 13

Persuade Stakeholders to make long term commitments to the organization

Question 14

Vision Statement: Form

Answer 14

Often one sentence that is Aspirational, Inspiration and Motivational (AIM)

Question 15

Mission, Vision and P-O-L-C (O)

Answer 15

The mission and vision statements influence the company organization by inspiring the companies organizational design and its organizational culture.

Question 16

Mission, Vision and P-O-L-C (L)

Answer 16

Mission and Vision are important towards leading because visionary leaders are instrumental in the success of new and innovating companies and ideas in the world.

Question 17

Mission, Vision and P-O-L-C (C)

Answer 17

Lets review, the steps for achieving successful controlling are as follows

1) Establishing performance standards
2) Comparing actual performance against standards
3) Taking corrective action when necessary

Question 18

What all can a Mission Statement Include

Answer 18

• Stakeholders - Customers, employees and shareholders
• Core Products/Services - What markets are you in
• Philosophy: Concern for some aspect of philosophy such as excellence, the environment, team work, innovation etc.
• Self Concept: How do we see ourselves
• Technology
• Businesses