Company Mission Flashcards
What is a company mission?
It is the unique purpose that sets a company apart from others of its type and identifies the scope of its operations in product, market, and technology terms.
What are the questions addressed in a mission statement?
- Why is this firm in business?
- What are our economic goals?
- What is our operating philosophy in terms of quality, company image, and self-concept?
- What are our core competencies and competitive advantages?
- What customers do and can we serve?
- How do we view our responsibilities to stockholders, employees, communities, environment, social issues and competitors?
What are the components of a mission statement?
- Customer-market
- Product-service
- Geographic domain
- Technology
- Concern for survival
- Philosophy
- Self-concept
- Concern for public image
- Consumers
- Quality
What are the three indispensable components of a company mission?
- Basic Product or service
- Primary Market
- Principal Technology
What are the primary goals of a company?
- Survival
- Profitability
- Growth
A firm’s __________ is the mainstay goal of a business.
profitability
A firm’s _______ is tied inextricably to its survival and profitability.
growth
What is a company philosophy?
What is another name for company philosophy?
It reflects the basic beliefs, values, aspirations, and philosophical priorities to which policy decision makers are committed in managing the company.
company creed
What is company self-concept/control?
The extent to which the firm can relate functionally to its external environment.
What are the newest trends in mission components?
- Sensitivity to customer wants
- Quality
List Deming’s 14 points.
- Create constancy of purpose
- Adopt the new philosophy
- Cease dependence on mass inspection to achieve quality
- End the practice of awarding business on price tag alone. Instead, minimize total cost, often accomplished by working with a single supplier.
- Improve constantly the system of production and service.
- Institute training on the job
- Institute leadership
- Drive out fear
- Break down barriers between departments
- Eliminate slogans, exhorbitations, and numerical targets.
- Eliminate work standards(quotas) and management by objective
- Remove barriers that rob workers, engineers and managers of their right to pride of workmanship
- Institute a vigorous program of education and self-improvement
- Put everyone in the company to work to accomplish the transformation.
What is a vision statement?
A vision statement presents a firm’s policy intent designed to focus the energies and resources of the company on achieving a desirable future.
Who are the board of directors?
The board of directors is the group of stockholder representatives and policy managers responsible for overseeing the creation and accomplishment of the company mission.
What are the responsibilities of a board of directors?
- Establish and update mission
- Elect top officers & CEO
- Establish compensation for top officers
- Determine amount & timing of dividends
- Set broad company policy
- Set objectives and authorize managers to implement long-term strategy
- Mandate company’s legal and ethics compliance
What is an agency theory?
Agency theory is a set of ideas on organizational control based on the belief that the separation of the ownership from management creates the potential for the wishes of owners to be ignored.
