Business Simulation Seminar Strategies, Missions, and Vision Statements

Business  Perhaps the most complex human activity.

Vision Statement  A vision statement is the company’s view of the future. Provides direction Can be an inspiration  Example: Microsoft’s initial vision was a computer on every desk and in every home.  Example: Sun Microsystems vision that “The network is the computer.”

Mission Statement  A Mission statement tells you the fundamental purpose of the organization. It concentrates on the present. It defines the customer and the critical processes. (Wikipedia)

Strategy  A Strategy is a long term plan of action designed to achieve a particular goal, most often "winning." (Wikipedia)

Strategy  The high-level plan for achieving the goals of the business  E.g., if the goal of the company is to become international, possible strategies are: A multi-domestic strategy A global strategy A transnational strategy A home replication strategy

Porter’s Generic Strategies  Differentiator Distinguish products or services  Overall Cost Leadership Reduce manufacturing and other costs  Focus Concentrate on a specific regional market, product market, or group of buyers May be either a differentiator or cost leader

Miles – Snow Typology  Prospector strategies  Analyzer strategies  Defender strategies  Reactor strategies

Strategy vs. Tactics  Tactics describe how the strategy is to be accomplished  E.g., if we have a transnational strategy, possible tactics are: Partnerships Franchising Build new

Which comes first?  Logically: Vision Mission Strategy  But not necessarily done in that order.  Mission statements are often “cascaded” down through the business Each organization has a mission that supports the larger organization