Lecture 2: Vision and Mission Analysis (Chap 5) Flashcards
What is the root of starting a new business?
Starting a new business rests on a set of beliefs that new org. can offer some product or service to some customers in some geographic area using some type of technology at a profitable price.
What is the benefit of an org. having a clear vision?
It provides the foundation for developing a comprehensive mission statement. Vision statement should be established first and foremost.
What actually is a vision statement?
It is the future direction of the co. which normally ask the qs “what do we wanna become?”
What is a shared vision?
It creates commonality of interests that can lift workers out of the monotony of daily work & puts them into a new world of opportunities & challenges.
What are some of the characteristics of a vision statement?
It should be short, preferably one sentence, as many managers as possible providing input into developing the statement. It should also reveal the type of business the firm engages.
What is a mission statement?
It is a declaration of an org.’s reason for being. It answers the qs “what is our business”. It reveals what an org. wants to be & whom it wants to serve. It is the starting point for the design of jobs & organizational structures and also the foundation for priorities, strategies, plans and work assignments.
Why is it crucial to have a clear mission statement in an org.?
It is for effectively establishing objectives and formulating strategies.
What are some other terms for “mission statement” ?
creed statement, a statement of purpose, a statement of philosophy, a statement of beliefs, a statement of business principles or a statement defining our business.
What is the main reason why all managers should be involved in the creation of a vision and mission statement?
This is because, through involvement, people become committed to an org. They work towards achieving the same goal (goal congruence)
What is a widely used approach in developing a vision and mission statement? List down step by step
- Select several articles regarding these statements & ask all managers to read as background info.
- Managers are to individually prepare a vision & mission statement for the org.
- Top managers then merge these statements into a single doc. & distribute this draft statements to all managers.
- A meeting is held w/ all managers to decide on the best statements and thereafter revise the selected doc.
What are the importance of vision & mission statements?
- ensure all employees/ managers understand the firms’ purpose or reason for being (goal congruence: all working to achieve the same goals/ objectives/ mission)
- a basis for prioritization of key internal & external factors utilized to formulate feasible strategies
- a basis for the allocation of resources (money, skill, technology, people) to diff departments
- a basis for organizing work, departments, activities, and segments around a common purpose
- a focal point for individuals to identify w/ the org.’s purpose & direction (feeling important & contributing to the org.)
- facilitate translation of objectives into a work structure
- resolve divergent views among managers
- achieve synergy among all managers & employees
According to Peter Drucker, when is the most important time to revisit the vision and mission statement?
It is when the co. becomes successful. Of course, when there’s crisis, we have to look back at our vision and mission statement to see what is the problem. However, people tend to forget to revisit these statements once they become successful.
NOTE: Success today does not mean success tmr.
What are the characteristics of a mission statement?
- allows for generation & consideration of a range of feasible alternative objectives & strategies w/o unduly stifling management creativity.
- needs to be broad to reconcile differences effectively and appeal to an org.’s diverse stakeholders
- broad in scope (doesn’t include monetary amounts)
- < 150 words
- inspiring
- identifies utility of a firms’ products
- socially & environmentally responsible (cares about the public, nature & environment)
- includes 9 components
- enduring
Customer Orientation: What is a mission statement?
- it defines what the org. is & what the org. aspires to be
- limited enough to exclude some ventures but broad enough to allow for creative growth
- distinguish an org. from the rest
- act as a framework for evaluating both current & prospective activities
- stated in terms sufficiently clear to be widely understood by the entire org
- reflects anticipation of customers
- operating philosophy should be to identify customers’ needs & provide a product or service to fulfill those needs
What are the 9 components in a mission statement?
- Customers: who are the main target customers?
- Products & services: what are the co.’s core business products or services?
- Markets: where does the firm compete w/ its competitors geographically?
- Technology: Is the firm technologically current? Are they the latest techs?
- Survival, growth and profitability: Is the firm committed to growth & financial soundness? (maximize shareholders’ value)
- Philosophy: basic beliefs, values, aspirations and ethical priorities of the firm?
- Self-concept: what is the firms’ major competitive advantage? (others don’t have)
- Public image: is the firm responsive to social, community and environmental concerns? (social & environmental friendly firm?)
- Employees: Are employees a valuable asset of the firm? (rlly taking care of the employees’ welfare)
