Business Simulation Seminar

Strategies, Missions, and Vision Statements

Business

Perhaps the most complex human activity.

Vision Statement

A vision statement is the company’s view of the future. Provides direction Can be an inspiration

Example: Microsoft’s initial vision was a computer on every desk and in every home.

Example: Sun Microsystems vision that “The network is the computer.”

Mission Statement

A Mission statement tells you the fundamental purpose of the organization. It concentrates on the present. It defines the customer and the critical processes. (Wikipedia)

Strategy

A Strategy is a long term plan of action designed to achieve a particular goal, most often "winning." (Wikipedia)

Strategy

The high-level plan for achieving the goals of the business

E.g., if the goal of the company is to become international, possible strategies are: A multi-domestic strategy A global strategy A transnational strategy A home replication strategy

Porter’s Generic Strategies

Differentiator Distinguish products or services

Overall Cost Leadership Reduce manufacturing and other costs

Focus Concentrate on a specific regional market,

product market, or group of buyers May be either a differentiator or cost

leader

Miles – Snow Typology

Prospector strategies Analyzer strategies Defender strategies Reactor strategies

Strategy vs. Tactics

Tactics describe how the strategy is to be accomplished

E.g., if we have a transnational strategy, possible tactics are: Partnerships Franchising Build new

Which comes first?

Logically: Vision Mission Strategy

But not necessarily done in that order. Mission statements are often

“cascaded” down through the business Each organization has a mission that

supports the larger organization