Business Mission and Vision Quiz

What is a mission statement?

• A mission statement defines an organization's purpose and values.
• Typical components include:
  • Defining the organization's reason for existence
  • Identifying the target customers or market
  • Highlighting core values and beliefs
  • Describing the desired future state

Examples of Missions

• Oil company mission: To explore, produce, and refine oil and gas resources efficiently and sustainably, meeting global energy demands.
• NASA's 1960s mission: To land a man on the moon and return him safely to Earth.
• DuPont's mission: "Better things through chemistry," emphasizing innovation and scientific advancements.

Business Objectives

• Objectives are specific, measurable, attainable, relevant, and time-bound goals that support the overall mission.

Management Concepts

• MBO (Management by Objectives): A performance management system that aligns individual goals with organizational objectives.
• Synergy: The combined effect of two or more things working together for a greater impact than they could achieve individually. Often applied to the benefits of mergers or acquisitions.

Strategy and Enterprise

• Strategic focus: To achieve a competitive advantage and sustained success in the marketplace.
• Case Western University appraisal process: The first step is a self-assessment of strengths and weaknesses.

Company Operations

• Order handling procedure: This process typically involves Sales, Marketing, Production, Finance, and Shipping departments.
• Rule: A specific, prescriptive statement that must be followed.
• Program: A structured set of activities designed to achieve a specific goal.
  • Components include:
    • Goals
    • Activities
    • Resources
    • Timeline
    • Evaluation methods

Policies vs. Rules

• Policies: Broad guidelines outlining general principles and expected behavior
• Rules: Specific, mandatory directives that must be followed.

Examples of company policies and rules

• Company vacation policy: Outlines the overall approach to vacation time, including eligibility, time off limits, and request procedures.
• Company vacation rule: An example is a rule requiring employees to submit vacation requests at least two weeks in advance.

Program Examples

• A program could be a training program designed to develop employee skills, a marketing program to launch a new product, or a research and development program to explore new technologies.

Strategic Concepts

• Strategic intent: A clear and ambitious vision of the future that motivates and guides strategic decisions.
• Strategic entrepreneurism: Actively creating and exploiting new opportunities for growth and competitive advantage.
• Jon Fisher's view: Strategic entrepreneurism aims to achieve "competitive advantage through innovation."
• Characteristics of firms with strong strategic intent:
  • A strong understanding of the industry and competition
  • Clear goals and objectives
  • A culture of innovation and risk-taking
  • A willingness to invest in resources
  • A commitment to long-term growth

Competition & Innovation

• Komatsu's aim: To "encircle" Caterpillar, their primary competitor, by expanding into new markets and developing innovative products.
• Achieving global leadership (Hamel and Prahalad): Strong strategic intent, innovation, and a global mindset are essential.
• Entrepreneurs identify: Emerging trends, market opportunities, and unmet customer needs.

Organizational Objectives

• Major objective: To achieve the strategic intent and grow the business.

Innovation Drivers

• Wine Group's "Wine in a Box" product: Driven by the need to reduce costs and packaging materials, making wine more accessible.

Entrepreneurial Management

• Art Ciocca's vision: Applied entrepreneurial management to transform the company from a struggling steel mill to a global leader.

Opportunity Assessment

• Profitable opportunities not pursued: Due to risk aversion, limited resources, or a lack of alignment with the company's strategic objectives.

Product Launch Success

• Market introduction success: Affected by factors such as timing, market demand, competition, and the product's appeal.

Strategic Interconnectedness

• Example: An airline's pricing strategy might be influenced by the strategies of its competitors, such as offering lower fares or loyalty programs.

Strategic Planning Process

• Essential during all phases: Flexibility, adaptability, and a willingness to adjust to changing conditions.
• Future uncertainty: Develop contingency plans and scenarios to address unforeseen challenges.

Strategic Leadership

• Ciocca's successful strategies: Focused on cost-cutting, modernization, and expanding into new markets.

TowS Matrix

• Partnership formation benefit: Helps identify opportunities and threats that could be exploited through collaboration.
• Overlapping strengths and weaknesses: Can lead to conflicts and duplication of efforts.
• Successful TOWS Matrix strategy: Partnering to exploit opportunities that play to their strengths in a coordinated fashion.

Blue Ocean Strategy

• Focus: Creating uncontested market space by offering a unique product or service that meets unmet customer needs.
• Number of TOWS Matrices: Two matrices should be developed: one for each partner and a third for the combined partnership.

Industry Analogy

• Traditional industry competition: Red Ocean Strategy, where companies compete for existing market share.

Mergers & Acquisitions

• Third TOWS Matrix importance: To identify potential synergies and address the challenges stemming from the combination of two different entities.

Blue Ocean Market Characteristics

• Lack of competition
• Potential for large-scale growth
• High profitability
• Customer acceptance