Chat with us, powered by LiveChat As cited in the chapter, Edward Deming, a famous businessman, once said, In God we trust. All others bring data.? What did Deming mean in te | Wridemy

As cited in the chapter, Edward Deming, a famous businessman, once said, In God we trust. All others bring data.? What did Deming mean in te

As cited in the chapter, Edward Deming, a famous businessman, once said, In God we trust. All others bring data.? What did Deming mean in te

 

Reflection and Discussion Week 2

Reflection and Discussion Week 2Assigned Readings:Chapter 1. The Nature of Strategic ManagementChapter 2. Business Vision and MissionInitial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.Also, provide a graduate-level response to each of the following questions:

  1. As cited in the chapter, Edward Deming, a famous businessman, once said, “In God we trust. All others bring data.” What did Deming mean in terms of developing a strategic plan?
  2. Critique the following vision statement by Stokes Eye Clinic:  “Our vision is to take care of your vision.”

[Your post must be substantive and demonstrate insight gained from the course material. Postings must be in the student's own words – do not provide quotes!] [Your initial post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review] 

Strategic Management Concepts: A Competitive Advantage Approach

Sixteenth Edition

Chapter 2

The Business Vision and Mission

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved

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Learning Objectives (1 of 2)

2.1 Describe the nature and role of vision statements in strategic management.

2.2 Describe the nature and role of mission statements in strategic management.

2.3 Discuss the process of developing a vision and mission statement.

2.4 Discuss how clear vision and mission statements can benefit other strategic-management activities.

2.5 Describe the characteristics of a good mission statement.

2.6 Identify the components of mission statements.

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After studying this chapter, you should be able to do the following:

1. Describe the nature and role of vision statements in strategic management.

2. Describe the nature and role of mission statements in strategic management.

3. Discuss the process of developing a vision and mission statement.

4. Discuss how clear vision and mission statements can benefit other strategic-management activities.

5. Describe the characteristics of a good mission statement.

6. Identify the components of mission statements.

7. Evaluate mission statements of different organizations and write effective vision and mission statements.

Learning Objectives (2 of 2)

2.7 Evaluate mission statements of different organizations and write effective vision and mission statements.

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved

After studying this chapter, you should be able to do the following:

1. Describe the nature and role of vision statements in strategic management.

2. Describe the nature and role of mission statements in strategic management.

3. Discuss the process of developing a vision and mission statement.

4. Discuss how clear vision and mission statements can benefit other strategic-management activities.

5. Describe the characteristics of a good mission statement.

6. Identify the components of mission statements.

7. Evaluate mission statements of different organizations and write effective vision and mission statements.

Vision Statement

A vision statement should answer the basic question:

“What do we want to become?”

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It is especially important for managers and executives in any organization to agree on the basic vision that the firm strives to achieve in the long term.

What Do We Want to Become?

The vision statement should be short, preferably one sentence, and as many managers as possible should have input into developing the statement.

The vision statement should reveal the type of business the firm engages.

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Many organizations have both a vision and mission statement, but the vision statement should be established first and foremost.

Vision Statement Examples

General Motors’ vision is to be the world leader in transportation products and related services. (Author comment: Good statement)

PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate-environment, social, economic creating a better tomorrow than today. (Author comment: Statement is too vague; it should reveal how the firm’s food and beverage business benefits people)

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Table 2-1 provides examples of vision statements with comments from the textbook author.

Mission Statement (1 of 2)

A declaration of an organization’s “reason for being.”

It answers the pivotal question “What is our business?”

It is essential for effectively establishing objectives and formulating strategies.

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An enduring statement of purpose that distinguishes one organization from other similar enterprises, the mission statement is a declaration of an organization’s “reason for being.”

Mission Statement (2 of 2)

It reveals what an organization wants to be and whom it wants to serve

It is also called a creed statement, a statement of purpose, a statement of philosophy, a statement of beliefs, and a statement of business principles

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All organizations have a reason for being, even if strategists have not consciously transformed this reason into writing.

Figure 2-1 A Comprehensive Strategic-Management Model

Source: Fred R. David, “How Companies Define Their Mission,” Long Range Planning 22, no. 3 (June 1988): 40. See also Anik Ratnaningsih, Nadjadji Anwar, Patdono Suwignjo, and Putu Artama Wiguna, “Balance Scorecard of David’s Strategic Modeling at Industrial Business for National Construction Contractor of Indonesia,” Journal of Mathematics and Technology, no. 4 (October 2010): 20.

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved

Relationships among major components of the strategic-management process are shown in the model, which appears in all chapters with appropriate areas shaded to show the particular focus of each chapter.

Developing Vision and Mission Statements

A widely used approach includes:

Select several articles about these statements and ask all managers to read these as background information.

Ask managers themselves to prepare a vision and mission statement for the organization.

A facilitator or committee of top managers should then merge these statements into a single document and distribute the draft statements to all managers.

A request for modifications, additions, and deletions is needed next, along with a meeting to revise the document.

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Clear vision and mission statements are needed before alternative strategies can be formulated and implemented. As many managers as possible should be involved in the process of developing these statements because, through involvement, people become committed to an organization.

Importance of Vision and Mission Statements

To make sure all employees/managers understand the firm’s purpose or reason for being.

To provide a basis for prioritization of key internal and external factors utilized to formulate feasible strategies.

To provide a basis for the allocation of resources.

To provide a basis for organizing work, departments, activities, and segments around a common purpose.

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King and Cleland recommend that organizations carefully develop a written mission statement in order to reap the following benefits:

1. To make sure all employees/managers understand the firm’s purpose or reason for being.

2. To provide a basis for prioritization of key internal and external factors utilized to formulate feasible strategies.

3. To provide a basis for the allocation of resources.

4. To provide a basis for organizing work, departments, activities, and segments around a common purpose.

Table 2-2 Ten Benefits of Having a Clear Mission and Vision

1. Achieve clarity of purpose among all managers and employees.
2. Provide a basis for all other strategic planning activities, including internal and external assessment, establishing objectives, developing strategies, choosing among alternative strategies, devising policies, establishing organizational structure, allocating resources, and evaluating performance.
3. Provide direction.
4. Provide a focal point for all stakeholders of the firm.
5. Resolve divergent views among managers.
6. Promote a sense of shared expectations among all managers and employees.
7. Project a sense of worth and intent to all stakeholders.
8. Project an organized, motivated organization worthy of support.
9. Achieve higher organizational performance.
10. Achieve synergy among all managers and employees.

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Ten benefits of having a clear mission and vision are provided in Table 2-2.

Characteristics of a Mission Statement (1 of 4)

A good mission statement allows for the generation and consideration of a range of feasible alternative objectives and strategies without unduly stifling management creativity.

A mission statement needs to be broad to reconcile differences effectively among, and appeal to, an organization's diverse stakeholders

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A mission statement is a declaration of attitude and outlook. It usually is broad in scope for at least two major reasons. First, a good mission statement allows for the generation and consideration of a range of feasible alternative objectives and strategies without unduly stifling management creativity.

Second, a mission statement needs to be broad to reconcile differences effectively among, and appeal to, an organization’s diverse stakeholders, the individuals and groups of individuals who have a special stake or claim on the company.

Characteristics of a Mission Statement (2 of 4)

Stakeholders

include employees, managers, stockholders, boards of directors, customers, suppliers, distributors, creditors, governments (local, state, federal, and foreign), unions, competitors, environmental groups, and the general public.

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Stakeholders are the individuals and groups of individuals who have a special stake or claim on the company.

Characteristics of a Mission Statement (3 of 4)

Broad in scope; does not include monetary amounts, numbers, percentages, ratios, or objectives

Fewer than 150 words in length

Inspiring

Identifies the utility of a firm’s products

Reveals that the firm is socially responsible

Reveals that the firm is environmentally responsible

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As indicated in Table 2-3, there are several characteristics of an effective mission statement.

Characteristics of a Mission Statement (4 of 4)

Includes nine components: customers, products or services, markets, technology, concern for survival/growth/profits, philosophy, self-concept, concern for public image, concern for employees

Reconciliatory

Enduring

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As indicated in Table 2-3, there are several characteristics of an effective mission statement.

A Customer Orientation (1 of 3)

A mission statement should:

Define what the organization is and what the organization aspires to be

Be limited enough to exclude some ventures and broad enough to allow for creative growth

Distinguish a given organization from all others

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An effective mission statement describes an organization’s purpose, customers, products or services, markets, philosophy, and basic technology. According to Vern McGinnis, a mission statement should:

(1) define what the organization is and what the organization aspires to be,

(2) be limited enough to exclude some ventures and broad enough to allow for creative growth,

(3) distinguish a given organization from all others,

(4) serve as a framework for evaluating both current and prospective activities, and

(5) be stated in terms sufficiently clear to be widely understood throughout the organization.

A Customer Orientation (2 of 3)

A mission statement should also:

Serve as a framework for evaluating both current and prospective activities

Be stated in terms sufficiently clear to be widely understood throughout the organization

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A Customer Orientation (3 of 3)

A good mission statement reflects the anticipations of customers.

The operating philosophy of organizations should be to identify customers' needs and then provide a product or service to fulfill those needs.

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The mission statement should reflect the anticipations of customers. Rather than developing a product and then trying to find a market, the operating philosophy of organizations should be to identify customers’ needs and then provide a product or service to fulfill those needs.

Considerations (1 of 2)

Do not offer me things.

Do not offer me clothes. Offer me attractive looks.

Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking.

Do not offer me a house. Offer me security, comfort, and a place that is clean and happy.

Do not offer me books. Offer me hours of pleasure and the benefit of knowledge.

Do not offer me C Ds. Offer me leisure and the sound of music.

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The utility statements on the next 2 slides are relevant in developing a mission statement.

Considerations (2 of 2)

Do not offer me tools. Offer me the benefits and the pleasure that come from making beautiful things.

Do not offer me furniture. Offer me comfort and the quietness of a cozy place.

Do not offer me things. Offer me ideas, emotions, ambience, feelings, and benefits.

Please, do not offer me things.

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The utility statements on these two slides are relevant in developing a mission statement.

Mission Statement Components (1 of 2)

Customers-Who are the firm’s customers?

Products or services-What are the firm’s major products or services?

Markets-Geographically, where does the firm compete?

Technology-Is the firm technologically current?

Survival, growth, and profitability-Is the firm committed to growth and financial soundness?

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Mission statements can and do vary in length, content, format, and specificity. Most practitioners and academicians of strategic management feel that an effective statement should include the nine mission statement components presented on these two slides.

Mission Statement Components (2 of 2)

Philosophy-What are the basic beliefs, values, aspirations, and ethical priorities of the firm?

Self-concept (distinctive competence)-What is the firm’s major competitive advantage?

Public image-Is the firm responsive to social, community, and environmental concerns?

Employees-Are employees a valuable asset of the firm?

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Example Mission Statements (1 of 2)

PepsiCo

We aspire to make PepsiCo the world’s (3) premier consumer products company, focused on convenient foods and beverages (2). We seek to produce healthy financial rewards for investors (5) as we provide opportunities for growth and enrichment to our employees (9), our business partners and the communities (8) in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity (6).

Author comment: Statement lacks three components: Customers (1), Technology (4), and Distinctive Competence (7); 62 words

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Note: The numbers in parentheses correspond to the nine components listed on page 49. Perhaps the best way to develop a skill for writing and evaluating mission statements is to study actual company missions. Thus, Table 2-5 provides a component-by-component critique of two actual mission statements from PepsiCo and Royal Caribbean.

Example Mission Statements (2 of 2)

Royal Caribbean

We are loyal to Royal Caribbean and Celebrity and strive for continuous improvement in everything we do. We always provide service with a friendly greeting and a smile (7). We anticipate the needs of our customers and make all efforts to exceed our customers’ expectations. We take ownership of any problem that is brought to our attention. We engage in conduct that enhances our corporate reputation and employee morale (9). We are committed to act in the highest ethical manner and respect the rights and dignity of others (6).

Author comment: Statement lacks six components: Customers (1), Products/Services (2), Markets (3), Technology (4), Survival/Growth/Profits (5), and Public Image (8); 86 words

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The Royal Caribbean statement includes only six of the nine components, comprises 86 words total, and lacks a customer perspective. The Royal Caribbean statement merely includes the word customer(s), which is inadequate to be considered written from a customer perspective.

Exemplary Proposed Mission Statement (1 of 2)

Avon

Our mission is to provide women (1) quality fragrances, cosmetics, and jewelry (2) at reasonable prices backed by outstanding customer service provided by our thousands of door-to-door sales representatives (7, 9) operating globally (3). We use the latest technology (4) to profitably develop and market products desired by women all over the world (5). Avon representatives put integrity first (6) in setting a good example in every community (8) they operate-as they sell beauty. (58 words)

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Proposed, exemplary mission statements for Avon and L’Oreal are provided in Table 2-7. These rival firms have uniquely different competitive advantages in that Avon utilizes door-to-door sales representatives to gain competitive advantage, whereas L’Oreal markets products in thousands of retail outlets. The proposed Avon and L’Oreal statements have the characteristics described earlier, and include the nine components written from a customer perspective.

Exemplary Proposed Mission Statement (2 of 2)

L’Oreal

Our mission is to design, produce, and distribute the world’s best fragrances, perfumes, and personal care products (2) to women, men, and children (1) by utilizing the latest technological improvements (4). We empower our highly creative team of researchers to develop safe, eco-friendly (7) products that will enable our firm to profitably grow (5) through thousands of retail outlets. We strive to be one of the most socially responsible (8) firms on the planet (3) and appreciate our employees (9) making that happen, while following the “golden rule” in all that we do (6). (85 words)

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Copyright

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