Vision

What do we want to become?

Ch 2 -1

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Vision Statement Examples

General Motors vision is to be the world leader in transportation products and related services.

Ch 2 -2

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Vision Statement Examples

PepsiCos responsibility is to continually improve all aspects of the world in which we operate environment, social, economic creating a better tomorrow than today.

Ch 2 -3

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Vision Statement Examples

Dells vision is to create a company culture where environmental excellence is second nature.

Ch 2 -4

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Vision

Clear Business Vision

Comprehensive Mission Statement

Ch 2 -5

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Mission Statements

What is our business?

Ch 2 -6

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Mission Statements

Also referred to as:

Creed statement Statement of purpose Statement of philosophy Statement of business principles

Ch 2 -7

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Mission Statement Examples

We aspire to make PepsiCo the worlds 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.

Ch 2 -8

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Mission Statement Examples

Dells 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.

Ch 2 -9

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Ch 2 -10

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Products or Services Customers

Markets

Employees

Mission Components

Technology

Public Image Self-Concept Philosophy

Survival, Growth, Profits

Ch 2 -11

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

CustomersWho are the firms customers? Products or services What are the firms 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 firms 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 4-12

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Mission Statement Evaluation Matrix

COMPONENT COMPONENT COMPONENT COMPONENT COMPONENT

Organization

Customers

Products or Services

Markets

Concern for Survival, Growth, Profitability

Technology

Fleetwood Ent.

Yes

Yes

No

Yes

Yes

Ben & Jerry's

Royal Caribbean Dell Proctor & Gamble LOreal

No
Yes Yes Yes No

Yes
No Yes No No

Yes
No Yes Yes No

No
No Yes No No

Yes
No Yes Yes No

Ch 2 -13

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Mission Statement Evaluation Matrix

COMPONENT COMPONENT COMPONENT COMPONENT

Organization

Philosophy

SelfConcept

Concern for Public Image

Concern for Employees

Fleetwood Ent.
PepsiCo Royal Caribbean Dell Proctor & Gamble LOreal

Yes
Yes Yes Yes No No

Yes
No Yes Yes Yes Yes

No
Yes No Yes Yes Yes

Yes
Yes Yes No Yes Yes
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Ch 2 -14

Mission Statement Examples

Proctor & Gamble will provide branded products and services of superior quality and value that improve the lives of the worlds 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.

Ch 2 -15

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Why Vision & Mission

??????

Ch 2 -16

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Basis for Objectives & Strategies

Internal strengths/weaknesses External opportunities/threats Clear statement of mission

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Ch 4-17

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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Ch 4-18

Strengths Vs Distinctive Competencies

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Ch 4-19

Key Internal Forces

Distinctive Competencies:
Firms strengths that cannot be easily matched or imitated by competitors Building competitive advantage involves taking advantage of distinctive competencies

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Ch 4-20

From where do Strengths and Weaknesses come

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Ch 4-21

Internal Audit
Parallels process of external audit

Information from:
Management Marketing Finance/accounting Production/operations Research & development Management information systems

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Ch 4-22

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Ch 4-23

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Ch 4-24

Match between organizations internal resources &

skills and the opportunities & risks created by its external factors

Ch 6 -25

Stage 2: The Matching Stage

SWOT Matrix

Strengths Weaknesses Opportunities Threats

Ch 6 -26

SWOT Matrix

Four Types of Strategies

Strengths-Opportunities (SO) Weaknesses-Opportunities (WO) Strengths-Threats (ST) Weaknesses-Threats (WT)

Ch 6 -27

SO Strategies

Strengths Weaknesses Opportunities Threats SWOT SO Strategies

Use a firms internal strengths to take advantage of external opportunities

Ch 6 -28

WO Strategies

Strengths Weaknesses Opportunities Threats SWOT WO Strategies

Improving internal weaknesses by taking advantage of external opportunities

Ch 6 -29

ST Strategies

Strengths Weaknesses Opportunities Threats SWOT ST Strategies

Use a firms strengths to avoid or reduce the impact of external threats

Ch 6 -30

WT Strategies

Strengths Weaknesses Opportunities Threats SWOT WT Strategies

Defensive tactics aimed at reducing internal weaknesses & avoiding environmental threats

Ch 6 -31

SWOT Matrix
Developing the SWOT

List firms key internal List firms key internal List firms key external List firms key external

Strengths Weaknesses Opportunities Threats

Ch 6 -32

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

Ch 6 -33

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Ch 8-34

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall