40 Questions
What is the main topic of the introductory lecture?
Introduction to Strategic Management
Who is the author mentioned in the content?
Killian McCarthy
What is the purpose of having a mission and vision?
To provide direction and a clear plan
What is mentioned as a quantitative approach in the content?
Analyzing thousands of firms
What is the topic of Lecture 11?
Industry Context
What is the focus of the study mentioned in the content?
The performance effects of corporate decisions
Where can you find research related to strategic management?
Harvard Business Review
What is the main difference between a mission and a vision?
A mission is about the present, while a vision is about the future
What is the purpose of a mission statement?
To provide the fundamental principles guiding strategic choices
What is the main difference between a mission and a vision statement?
A mission statement provides business principles, while a vision statement provides business ambition
What are the four components of a mission and vision statement?
Organisational Purpose, Organisational Beliefs, Organisational Values, Business Definitions
What does a vision statement provide?
A picture of a future state of affairs the firm wishes to achieve
What is the main goal of a mission statement?
To provide the fundamental principles guiding strategic choices
What is the relationship between a mission and vision statement?
A mission statement provides business principles, while a vision statement provides business ambition
What is the purpose of a vision statement?
To provide a picture of a future state of affairs the firm wishes to achieve
What do organisational values, as part of a mission and vision statement, refer to?
The firm's core principles
What is one of the internal roles of a mission and vision?
Guide management’s thinking on strategic issues
What is the main focus of Rabobank Group?
All-finance services in the Netherlands and retail and wholesale banking, and food & agri internationally
What is the mission of Triodos Bank?
To help create a society that protects and promotes the quality of life of all its members and that has human dignity at its core
What is the external role of a mission and vision?
Enlist external support and create linkages with customers, suppliers, and alliance partners
What is the vision of ING?
To provide customers with effective solutions to manage their financial futures
What is not one of the internal roles of a mission and vision?
Enlist external support
Which bank's mission is to be the preferred bank of its customers through operational excellence?
ING
What is a benefit of having a clear mission and vision?
It helps to guide management's thinking on strategic issues
What is the paradox in strategic management?
Focusing on shareholders creates the most wealth and jobs, but leads to environmental destruction.
What is ExxonMobil's mission?
To fuel the world safely and responsibly.
What did ExxonMobil's engineers consider when designing facilities in Nova Scotia in 1996?
A rise in water level due to global warming.
What percentage of ExxonMobil's internal documents acknowledge that climate change is human-caused?
80%
What did ExxonMobil do externally to limit regulation?
Mislead the public.
When did ExxonMobil identify a link between fossil fuels and rising CO2?
1957
What did ExxonMobil's internal documents and peer-reviewed papers acknowledge?
Climate change is human-caused.
What percentage of ExxonMobil's advertorials expressed doubt about climate change?
81%
What does conforming in corporate governance entail?
Monitoring the organization's activities to ensure they are undertaken as promised
What is a characteristic of the two-tier board model?
Having separate boards for executive and supervisory functions
Which country has a corporate governance model that allows for a free choice between the one-tier and two-tier board models?
Denmark
What is a unique feature of the German corporate governance model?
Half of the supervisory board must represent labour
What is a key task of corporate governance in terms of management?
Questioning and supervising top management
What is a common feature of corporate governance models in China and Germany?
Two-tier board structure
What is a responsibility of the supervisory board in corporate governance?
Supervising top management
What is a feature of the French corporate governance model?
Labour are given observer status on the board
Study Notes
Strategic Management
- The course covers performance effects of corporate decisions, venture capital, strategic alliances, acquisitions, divestitures, and quantitative approaches in 1,000s of firms.
- Killian McCarthy is the instructor.
Mission and Vision
- A mission and vision are essential for direction and planning in an organization.
- The mission provides business principles, while the vision provides business ambition.
- The four components of a mission and vision are:
- Organizational purpose
- Organizational beliefs
- Organizational values
- Business definitions
Composition of Mission and Vision
- Internally, the mission and vision guide management's thinking, define performance standards, inspire employees, and establish a framework for ethical behavior.
- Externally, they enlist support, create linkages with customers and partners, and serve as a public relations tool.
Corporate Governance
- Corporate governance varies by country, with different structures, membership, and tasks.
- Examples of governance models include:
- Two-tier board (China, Germany, Netherlands)
- One-tier board (Britain, India, United States)
- Free to choose (Denmark, Italy, Japan, France)
The Paradox
- The paradox refers to the conflict between maximizing shareholder value and considering stakeholder interests.
- ExxonMobil's mission and vision highlight this paradox, as their internal documents acknowledged climate change, but external communications cast doubt on its human-caused nature.
Case Study: ExxonMobil
- Founded in 1999, with ancestry back to 1870.
- Mission: Fuel the world safely and responsibly.
- Vision: To be a responsible leader in the oil and gas industry while maximizing shareholder value.
- Internal acknowledgement of climate change and global warming.
- External limitation of regulation through misleading communication.
Assess your knowledge of strategic management concepts, including corporate decisions, venture capital, and quantitative approaches in organizations.
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