mission vision values Flashcards
strategic development process
1st conduct strategic analysis
2nd clarify mission, vision, values
3rd formulate the strategy
conduct strategic analysis
- environmental scan - PESTEL
- competitive scan - SWOT
- industry analysis - 5 forces
- resources & capabilities
clarify mission vision, values
- clear mission
- quantified vision
- core values
formulate the strategy
- key issues analysis
2. business level strategy
4 characteristics of vision statement
- aspirational & inspirational => move towards goal
- market oriented
- not limited to business
- CEO’s role - articulates => inspires & energizes company
3 vital components of vision statement
- stretch goals
- define niche
- time horizon
shift to values: old days => emerging views
- business: a-moral => value laden
- loyalty: shareholders => stakeholders
- bottom line: single (profitability) => triple (people,planet, profit)
- emphasis: ST 1/4 results => LT sustainability
- ethics: constraints => LT competitive advantage
growing trend: corporate ethics: 5 drivers
- improved risk management - preventing missteps
- improved org. functioning/building
- improved market positioning (vis-a-vis rivals)
- improved civic positioning - corporate citizenship/csr
- “a better way” - values worthwhile in/of themselves
improved risk mgmt - preventing missteps
decr. misconduct (corporate & individual)
decr. legal fees
improved org. functioning/building
ID w/ customer; motive e'ee loyalty values = essential to: (1) encourage cooperation (2) inspiring commitment (3) nurturing creativity/innovation (4) energize e'ees (positive self-image)
improved market positioning (vis-a-vis rivals)
competitive adv. = corporate values-driven culture concerned with expectations values = critical to: (1) Shaping corporate ID & rep. (2) building brands (3) earning trust of stakeholders
improved civic positioning - corporate citizenship/csr
principle issue = standing in community
good stewards, resources
“a better way” - values worthwhile in/of themselves
3 key terms:
(1) responsibility
(2) humanity
(3) corporate citizenship
ex. google’s 10 things
fundamental purpose of entity
mission statement
strategy update
- incremental strategy
2. transformational strategy
transformational strategy
- negative trigger - failed strategy
- new leader - “broom effect”
- technological change
- macroeconomic
Ex. FBI
strategy ->
involves tradeoff -> unique position => sustainable advantage & enables profitability
conduct strategic analysis: objective
ID through analysis, the events, forces, and experiences that impact and modify plans
clarify mission, vision, and values: objective
affirm high-level guidelines about organizational purpose and conduct
formulate the strategy: objective
define where and how the organization will compete
example of the vision statement not limited to business
government: “sent man to moon and bring him back”
“to be a top quartile specialist within 5 years”
cigna property and casualty insurance co. vision statement
“to have 1 million online customers by the end of the decade”
wells fargo IB vision statement
goal: “top 10 public university by 2020”
A&M vision statement
A&M’s 6 core values
- excellence - set the bar
- integrity - character is destiny
- leadership - follow me
- loyalty - acceptance forever
- respect - we are the aggies, the aggies we are
- selfless service - how can I be of service?
improved risk management: individual misconduct costs around …
6% of revenues
improved risk management: reduced legal fees examples
JPM
improved organizational functioning: ID with customer motives and motivate employee loyalty example
sealed air corp (USA)
improved market positioning: concerned with expectations of customers…
when they purchase products or services
improved civic positioning: principle issue: standing in community (vs…
standing in markets)
“a better way” (values worthwhile in and of themselves) …
right thing to do => not driven by business reason
Googles founders
Larry Page
Sergei Brin
Google - corporate 10 things
- focus on the user and all else will follow
- it’s best to do one thing really really well
- fast is better than slow
- democracy on the web works
- you don’t need to be at your desk to need an answer
- you can make money without doing evil (stopped doing busn. with china)
- there’s always more info out there
- the need for info crosses all borders
- you can be serious without a suit
- great just isn’t good enough
“organize the world’s info and make it universally accessible and useful”
google’s mission statement
“to inspire and nurture the human spirit - one person, one cup and one neighborhood at a time”
starbuck’s mission statement
“our mission is to create knowledge and develop future ethical business leaders for a global society”
may’s mission statement
transformational strategy: negative trigger (failed strategy) example
9/11 for FBI => overhauled strategy
transformational strategy: new leader example
broom effect -> sweep out. JC Penny and Mr. johnson’s more honest system => customers unhappy
transformational strategy: technological change example
internet
transformational strategy: macroeconomic example
rising oil prices => affected airlines
Strategic change agenda - FBI (past => future)
- domestic => global
- law enforcement => law enforcement and national security
- case-driven => threat-driven
- restrict; and share what you must => share; and restrict what you must
- operational silos => integrated team approach
- antiquated and disparate IT systems => mission-enhancing integrated IT systems + productivity tools
- budget drives strategy => strategy drives budget
unilever
company of brands => portfolio does not ID with parent (ben & jerry’s, dove, axe)
dove:
- being proud of body
- everyone is beautiful
- self-esteem fund
unilever changed mission statement
add vitality to life. meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good, and get more out of life.
strategy: unique position is not the same as…
operational activity/effectiveness (where look at entire process and activity to break up and analyze to increase efficiency and increase bottom line)(6 sigma)
- bottom line= productivity and profit
