The Management School Lancaster University MNGT220 Week 3 Tutorial 2 Role of objectives / mission statements Strategy lenses

Strategy Lenses 1a. Using each of the three strategic lenses, describe how the strategy of Dell (Illustration 1.1, pg. 8-9) can be characterised. 1a. Using each of the three strategic lenses, describe how the strategy of Dell (Illustration 1.1, pg. 8-9) can be characterised. The Management School Lancaster University

Strategy Lenses Design Lens Design Lens The use of financial planning (lower margins) is a good example on how the design lens can be used to find a strategic position The use of financial planning (lower margins) is a good example on how the design lens can be used to find a strategic position The underpinning economic rationale that a profitable existence with a lower margin is possible in the first place The underpinning economic rationale that a profitable existence with a lower margin is possible in the first place This mindset leads to a different approach to the operations (cost avoiding) This mindset leads to a different approach to the operations (cost avoiding) The Management School Lancaster University

Strategy Lenses Experience Lens Experience Lens The translation of B2B experience to the B2C sector The translation of B2B experience to the B2C sector The Management School Lancaster University

Strategy Lenses Ideas Lens Ideas Lens A new business model that departs from the industry norm A new business model that departs from the industry norm This requires boldness and vigilance (entrepreneurial characteristic) This requires boldness and vigilance (entrepreneurial characteristic) This makes cooperation with suppliers (supply chain/ make to order) a main strategic issue This makes cooperation with suppliers (supply chain/ make to order) a main strategic issue The idea of giving flexibility to consumers is not new; emphasis is on the scale of operations The idea of giving flexibility to consumers is not new; emphasis is on the scale of operations The Management School Lancaster University

The mission statement of Citicorp Summary of statement The premise of Citicorps is to offer an array of products and services of all its market segments primarily where a customer need has been established. Its entry into the the lucrative consumer market has begun to show signs of positive returns, while the corporate market continues to remain a highly profitable segment with strong demands for many of the products and services Citicorp offers. Its technological capacity is and will continue to be a significant driving force behind many new products and improving upon its global communications network. Citicorp will also continue its active participation in legislative reform since many of the laws in existence today preclude its activities in various product-market and geographical segments within the United States. 1

The Management School Lancaster University Flymo Ltd to expand in size, influence and profitability to strive to be just that little bit more professional than our competitors in the total package we present to the customer to remain in advance of all other world wide in air-cushion mowers, petrol and electric to expand our range of products with other quality yard-care products (re. garden equipment), which can be marketed through our existing channels 2

The Management School Lancaster University Statement of mission/objectives: purposewhy it exists why it was formed 4 ethoshow an organisation behaves towards employees / community etc acts as constraint on means statement of strategy: meanshow an organisation proposes to carry out its purpose and ethos

The Management School Lancaster University.... importance of mission/objectives define the organisation and its environment.... the process of legitimisation 6 provide standards to assess organisational performance help co-ordinate decisions a framework for decision maker

The Management School Lancaster University complicated by the nature and number of possible objectives e.g. Stakeholder Theory owners employees customers public suppliers nature formulation 7 complicated by the process of formulating objectives: mental frames, value systems, power relationships, trickle up theories

Citicorp extremely poor example extremely poor example legitimises any action by any manager legitimises any action by any manager language is very insulting to certain stakeholders (consumers) – lucrative = ripping off language is very insulting to certain stakeholders (consumers) – lucrative = ripping off The Management School Lancaster University

Flymo Ltd better example better example carefully crafted carefully crafted technology specific (aims) technology specific (aims) legitimises technological R&D focus legitimises technological R&D focus signals to managers where the focus of resource allocation should be signals to managers where the focus of resource allocation should be this mission statement better guides/ empowers managers and employees this mission statement better guides/ empowers managers and employees The Management School Lancaster University

Final Points mission statements should be crafted logically mission statements should be crafted logically however, there is also an underlying ethos (compare company culture) that can act as a constraint to the objectives if not taken into account however, there is also an underlying ethos (compare company culture) that can act as a constraint to the objectives if not taken into account The Management School Lancaster University