unit 3 vision, mission etc

7/27/2019 Unit 3 Vision, Mission Etc.

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Chapter 3: Strategic Management 1Copyright 2002 Prentice Hall Publishing Company

Strategic Managementand the Entrepreneur


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Strategic Management

Crucial to building a successful business.

Involves developing a game plan to guide a

company as it strives to accomplish itsmission, goals, and objectives, and to keep it

on its desired course.


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Is Strategic Planning Really That

Important?

Study of 500 small companies:

One of the most significant factors in

distinguishing growing companies fromthose in decline: use of a written business

plan.

Another study:

Only 12% of small companies had a long-

range plan in writing.


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Strategic Management and

Competitive Edge

Developing a strategic plan is crucial to

creating a competi tive advantage, the

aggregation of factors that sets a company

apart from its competitors and gives it a

unique position in the market.

e.g. Facebook- mission is to make the world

more open and connected.


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Strategic Management Process

Step 1: Develop a vision and translate it into a

mission statement.

Step 2: Define core competencies and target

market and identify desired market position.Step 3: Assess strengths and weaknesses.

Step 4: Scan environment for opportunities

and threats.Step 5: Identify key success factors.


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Strategic Management Process

Step 6: Analyze competition.

Step 7: Create goals and objectives.

Step 8: Formulate strategies.

Step 9: Translate plans into actions.

Step 10: Establish accurate controls.Revise plans/steps as need or if necessary

(continued)


7/36Chapter 3: Strategic Management 7Copyright 2002 Prentice Hall Publishing Company

Knowledge Management

The practice of gathering, organizing, anddisseminating the collective wisdom and

experience of a companys employees for the

purpose of strengthening its competitive position.

Knowledge management involves: Taking inventory of the special knowledge the people

in the company possess.

Organizing that knowledge and disseminating it to

those who need it.



Step 1: Develop a Visionand

Create a Mission Statement

Visionan expression of what an

entrepreneur stands for and believes in.

A clearly defined vision:

Provides direction

Determines decisions

Motivates people



Step 1: Develop a Vision and

Create a M ission Statement

The Mission Statement addresses question:

What business are we in?

The mission is a written expression of how

the company will reflect the owners values,

beliefs, and vision.

The companys mission depicts its character,

identity, and scope of operationin enoughdetail to distinguish the company in the

marketplace.



Vision and Mission

(Review different view)

Vision: An overall picture of where the entire

organization would like to be in the

future

Mission: A statement of what the various

organizational units do and what they

hope to accomplish in alignment with

the organizational vision


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PaymasterMission and Values

Mission

To offer a speedy, efficient

and convenient multi-

payment and business

services which utilise

superior customer service

to ensure satisfaction for

Client Companies,

Business Partners andCustomers while

maximizing shareholders'

value.

Core Values

Integrity (and reliability)

Caring

Innovativeness

Dynamism Accountability

Utilizing superior

customer service to ensure

satisfaction


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MBCC

Vision, Mission & Core Values

Vision

Committed to being the University College of

choice providing world class multi-disciplinaryeducation and training for lifelong learning

satisfying the needs of a dynamic global

marketplace.


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MBCC


Mission

Through strong leadership, a culture of research,

excellent customer service, and quality delivery using

modern technology, we will satisfy the changing needsof the community for highly competent, innovative

and socially responsible agents of transformation.

We will collaborate with other institutions and

stakeholders to provide relevant and affordable

programmes while fostering the holistic development

of our students in a safe, caring environment.


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MBCC


Core Values

Excellence

Team Work

Respect

Accountability

Integrity

Civic responsibility

Caring


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Important Components of

Organizational Vision

OrganizationalPurpose

Broad Goals

Core Values and Beliefs

Summary of What

Organization Does


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Components of Organizational

Vision and Mission Statements

Markets

Technology

Concern for

Survival, Profits,

and Growth

Products orServices

Self-concept

Concern forPublic Image

Concern for

EmployeesPhilosophy

Customers


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Step 2: Define Core Competencies

and Market Position

Company must define its set of corecompetencies that enable it to servecustomers better than rivals.

Core Competenciesa unique set ofcapabilities a company develops in keyoperational areas that allow it to vault pastcompetitors.

They are what a company does best. Best to rely on a natural advantage(often

linked to the companys size).


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Step 2: Define Core Competencies

and Market Position

Market segmentationcarving up the mass

market into smaller, more homogenous units

and then attacking certain segments with a

specific marketing strategy.

Proper positioningcreating the desired

image for the business in the customersmind.


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Step 3: Assess Company Strengths

and Weaknesses

Strengths

Positive internal factors that

contribute to accomplishing the

mission, goals, and objectives.

Weaknesses

Negative internal factors that inhibit

the accomplishment of the mission,

goals, and objectives.


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Step 4: Scan for Opportunities

and Threats

Opportunities

Positive external factors the company canemploy to accomplish its mission, goals, andobjectives.

Threats

Negative external factors that inhibit the firmsability to accomplish its mission, goals, andobjectives.


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Step 5: Identify Key Success

Factors

Key success factors:

relationships between a

controllable variable and a

critical factor that influence acompanys ability to compete

in the market.

The keys to unlocking the

secrets of competing

successfully in a particular

market segment.


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Step 6: Analyze Competitors

Analyzing key competitors allows an entrepreneurto:

avoid surprises from existing competitors new

strategies and tactics.

identify potential new competitors and the

threats they pose.

improve reaction time to competitors actions.

anticipate rivals next strategic moves.


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Step 6: Analyze Competitors

Techniques that do notrequire unethical

behavior: Monitor industry and trade publications.

Talk to customers and suppliers.

Listen to employees, especially sales representatives

and purchasing agents. Attend trade shows and conferences.

Study competitors literature and benchmark theirproducts and services.

Get competitors credit reports.

Check out the local library.

Use the World Wide Web to learn more aboutcompetitors.

Visit competing businesses to observe their operations.


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Step 7: Create Company Goals

and Objectives

Goalsbroad, long-range attributes to be

accomplished.

Objectivesmore detailed, specific targets of

performance that are S.M.A.R.T. Specific

Measurable

Attainable

Realistic (yet challenging)

Timely


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Why Have Goals?

Goals:

1. Direct all organizational work toward a

common and unified purpose

2. Act as targets for motivating people

3. Serve as criteria against which work

accomplishments are measured


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Types of Goals

Specificity

Specific

Directional

Areas of

Organizational Work

Technology and

operations

Marketing

Financial

Time Frame

Long term

Short term

Breadth

Organization-

wide

Operational

Ch t i ti f G d


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Characteristics of Good

Goals

Written in terms of outcomes rather than actions

Measurable and quantifiable

Clear as to a time frame

Challenging yet attainable

Written downCommunicated to all organizational members


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The Goal-Setting Process

Steps:

1. Review the organizational vision and mission(s)

2. Evaluate available resources3. Determine broad, long-term, organization-wide goals

4. Write down the organization-wide goals

5. Determine specific, short-term operational goals6. Write down the operational goals

7. Review results


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Relationship Between

Organizational Goals and Strategies

Organizational

Vision and Mission(s)

Organization-wide Goals

Operational Goals

Operational Strategies


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Step 8: Formulate Strategies

Strategya road map to guide the company

through a turbulent environment as it seeks to

fulfill its mission, goals, and objectives. It is the

companys game plan for winning.

Three basic strategies:

Strategy?

Cost leadership

Differentiation

Focus


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Differentiation

Company seeks to build customer loyalty bypositioning its goods or services in a unique or

different fashion.

Idea is to be special at something customers

value.

Key: Build basis for differentiation on a

distinctive competence, something that the

small company is uniquely good at doing incomparison to its competitors.


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Focus

Company selects one or more customersegments in a market, identifies customersspecial needs, wants, or interests, and thentargets them with a product or service designedspecifically for them.

Strategy builds on differencesamong marketsegments.

Rather than try to serve the total market, the

company focuses on serving a niche (or severalniches) within that market.


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Cost Leadership

Goal: to be thelow-cost producer in theindustry (or market segment).

Low-cost leaders have an advantage inreaching buyers who buy on the basis of price,

and they have the power to set the industrysprice floor.

Works well when:

buyers are sensitive to price changes.

competing firms sell the same commodity products. a company can benefit from economies of scale.


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Step 9: Translate Strategies

into Action Plans

Create projects by defining:

Purpose

Scope

Contribution

Resource requirements

Timing


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Step 10: Establish Accurate Controls

The plan establishes the standards against

which actual performance is measured.

Entrepreneur must:

identify and track key performance

indicators.

Take corrective action.


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Balanced Scorecards

Four Perspectives:

Customer: How do customers see us?

Internal Business: At what must we excel? Innovation and Learning: Can we continue

to improve and create value?

Financial: How do we look to shareholders?

unit 3 vision, mission etc

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