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Ch 2 -1
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“What do we want to become?”
Vision
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Ch 2 -2
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General Motors’ vision is to be the world leader in transportation products and related services.
Vision Statement Examples
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Ch 2 -3
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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.
Vision Statement Examples
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Ch 2 -4
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Publishing as Prentice Hall
Dell’s vision is to create a company culture where environmental excellence is second nature.
Vision Statement Examples
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Ch 2 -5
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Comprehensive
Mission Statement
Vision
Clear Business
Vision
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Ch 2 -6
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“What is our business?”
Mission Statements
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Ch 2 -7
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Publishing as Prentice Hall
Mission Statements
•Creed statement
•Statement of purpose
•Statement of philosophy
•Statement of business principles
Also referred to as:
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Ch 2 -8
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Publishing as Prentice Hall
We aspire to make PepsiCo the world’s premier consumer products company, focused on convenient foods and beverages. We seek to produce healthy financial rewards for investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity.
Mission Statement Examples
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Ch 2 -9
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Publishing as Prentice Hall
Dell’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet consumer expectations of highest quality; leading technology; competitive pricing; individual and company accountability; best-in-class service and support; flexible customization capability; superior corporate citizenship; financial stability.
Mission Statement Examples
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Ch 2 -10
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Ch 2 -11
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Mission
Components
Customers
Markets
Employees
Public
ImageSelf-Concept Philosophy
Survival,
Growth,
Profits
Products or
Services
Technology
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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? Concern for survival, growth, and profitability – is the firm committed
to growth and financial soundness? Philosophy – What are the basic beliefs, values, aspirations, and
ethical priorities of the firm? Self-concept– what is the firm’s distinctive competence or major
competitive advantage? Concern for public image – Is the firm responsive to social,
community, ad environmental concerns? Concern for employees – Are employees a valuable asset of the firm?
Ch 4-12Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Ch 2 -13
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Mission Statement Evaluation MatrixCOMPONENT COMPONENT COMPONENT COMPONENT COMPONENT
Organization CustomersProducts
or Services Markets
Concern for Survival, Growth,
Profitability Technology
Fleetwood Ent. Yes Yes No Yes Yes
Ben & Jerry's No Yes Yes No Yes
Royal Caribbean Yes No No No No
Dell Yes Yes Yes Yes Yes
Proctor & Gamble Yes No Yes No Yes
L’Oreal No No No No No
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Ch 2 -14
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Publishing as Prentice Hall
Mission Statement Evaluation Matrix
COMPONENT COMPONENT COMPONENT COMPONENT
Organization PhilosophySelf-
ConceptConcern for Public Image
Concern for Employees
Fleetwood Ent. Yes Yes No Yes
PepsiCo Yes No Yes Yes
Royal Caribbean Yes Yes No Yes
Dell Yes Yes Yes No
Proctor & Gamble No Yes Yes Yes
L’Oreal No Yes Yes Yes
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Ch 2 -15
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Proctor & Gamble will provide branded products and services of superior quality and value that improve the lives of the world’s consumers. As a result, consumers will reward us with industry leadership in sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.
Mission Statement Examples
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Ch 2 -16
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Why Vision & Mission
??????
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Ch 4-17Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Internal strengths/weaknesses External opportunities/threats Clear statement of mission
Basis for Objectives & Strategies
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Ch 4-18Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
“Great spirits have always encountered violent opposition from mediocre minds.” – Albert Einstein
“Weak leadership can wreck the soundest strategy.” – Sun Tzu
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Strengths Vs Distinctive Competencies
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Publishing as Prentice Hall Ch 4-19
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Ch 4-20Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Key Internal Forces
Distinctive Competencies:
Firm’s strengths that cannot be easily matched or imitated by competitors
Building competitive advantage involves taking advantage of distinctive competencies
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From where do Strengths and
Weaknesses come
?Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall Ch 4-21
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Ch 4-22Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Internal Audit
•Information from:•Management
•Marketing
•Finance/accounting
•Production/operations
•Research & development
•Management information systems
Parallels process of external audit
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Ch 4-23Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Ch 4-24Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Ch 6 -25
Match between organization’s internal resources & skills and
the opportunities & risks created by its external factors
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Ch 6 -26
Stage 2: The Matching Stage
Strengths
Weaknesses
Opportunities
Threats
SWOT Matrix
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Ch 6 -27
SWOT Matrix
Strengths-Opportunities (SO)
Weaknesses-Opportunities (WO)
Strengths-Threats (ST)
Weaknesses-Threats (WT)
Four Types of Strategies
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Ch 6 -28
SO Strategies
Use a firm’s
internal strengths
to take advantage
of external
opportunities
SO
Strategies
Strengths
Weaknesses
Opportunities
Threats
SWOT
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Ch 6 -29
WO Strategies
Improving internal
weaknesses by
taking advantage
of external
opportunities
WO
Strategies
Strengths
Weaknesses
Opportunities
Threats
SWOT
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Ch 6 -30
ST Strategies
Use a firm’s
strengths
to avoid or
reduce the impact
of external
threats
ST
Strategies
Strengths
Weaknesses
Opportunities
Threats
SWOT
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Ch 6 -31
WT Strategies
Defensive tactics
aimed at reducing
internal
weaknesses &
avoiding
environmental
threats
WT
Strategies
Strengths
Weaknesses
Opportunities
Threats
SWOT
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Ch 6 -32
SWOT Matrix
Developing the SWOT
List firm’s key internal Strengths
List firm’s key internal Weaknesses
List firm’s key external Opportunities
List firm’s key external Threats
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Ch 6 -33
Limitations with SWOT Matrix
Does not show how to achieve a competitive advantage
Provides a static assessment in time May lead the firm to overemphasize a single
internal or external factor in formulating strategies
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Ch 8-34
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Publishing as Prentice Hall
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