STRATEGIC VISION & MISSION MISSION STATEMENTS ENDURING STATEMENTS OF PURPOSE THAT DISTINGUISH ONE ORGANIZATION FROM OTHER SIMILAR FIRMS. IDENTIFY THE SCOPE OF A FIRM’S OPERATIONS IN PRODUCT AND MARKET TERMS “MISSION” tends to be concerned with the present… “WHAT IS OUR BUSINESS?” “VISION” focuses on our future… “WHAT KIND OF BUSINESS ARE WE TRYING TO BECOME?” “WHAT SHOULD OUR BUSINESS BE IN THE FUTURE?” Questions to Address: 1—WHAT NEEDS ARE WE TRYING TO SATISFY? 2—WHO DO WE INTEND TO SERVE? 3—HOW WILL WE MEET THESE NEEDS?

VISION/MISSION STATEMENTS TEND TO CONTAIN THE FOLLOWING COMPONENTS… PRINCIPAL PRODUCTS AND/OR SERVICES OFFERED TARGETED CUSTOMERS AND/OR MARKETS GEOGRAPHICAL DOMAIN TO BE SERVED THE CORE TECHNOLOGIES THAT WILL BE USED A PHILOSOPHICAL STATEMENT OF WHO THE COMPANY IS, AND HOW IT WILL CONDUCT BUSINESS

BROAD vs NARROW BUSINESS DEFINITIONS BROAD NARROW FURNITURE………………………WROUGHT IRON LAWN FURNITURE FOOTWEAR………………………ATHLETIC FOOTWEAR BEVERAGES………………………SOFT DRINKS TRAVEL & TOURISM……...……SHIP CRUISES TO ALASKA GLOBAL MAIL DELIVERY.……OVERNIGHT PACKAGE DELIVERY

THREE ASPECTS OF A WELL-CONCEIVED STRATEGIC VISION 1—UNDERSTANDING WHAT BUSINESS A COMPANY IS REALLY IN… 2—COMMUNICATING THE VISION AND MISSION IN WAYS THAT ARE CLEAR, EXCITING, AND INSPIRING… 3—KNOWING WHEN TO ALTER THE COMPANY’S STRATEGIC COURSE AND CHANGE IT’S MISSION…

EXAMPLES OF MISSION/VISION STATEMENTS AVIS OUR BUSINESS IS RENTING CARS, OUR MISSION IS TOTAL CUSTOMER SATISFACTION. AMERICAN RED CROSS THE MISSION OF THE AMERICAN RED CROSS IS TO IMPROVE THE QUALITY OF HUMAN LIFE; TO ENHANCE SELF-RELIANCE AND CONCERN FOR OTHERS; AND TO HELP PEOPLE AVOID, PREPARE FOR, AND COPE WITH EMERGENCIES. OTIS ELEVATOR OUR MISSION IS TO PROVIDE ANY CUSTOMER A MEANS OF MOVING PEOPLE AND THINGS UP, DOWN, AND SIDEWAYS OVER SHORT DISTANCES WITH HIGHER RELIABILITY THAT ANY SIMILAR ENTERPRISE IN THE WORLD. McDONALDS SERVING A LIMITED MENU OF HOT, TASTY FOOD QUICKLY, IN A CLEAN AND FRIENDLY RESTAURANT, FOR A GOOD VALUE, TO A BROAD BASE OF CUSTOMERS WORLDWIDE POLAROID (old) PERFECTING AND MARKETING INSTANT PHOTOGRAPHY TO SATISFY THE NEEDS OF MORE AFFLUENT US AND WEST EUROPEAN FAMILIES FOR AFFECTION, FRIENDSHIP, FOND MEMORIES, AND HUMOR.

MISSION STATEMENTS FOR FUNCTIONAL DEPARTMENTS HUMAN RESOURCES The mission of the human resources department is to contribute to organizational success by developing effective leaders, creating high performance teams, and maximizing the potential of individuals. CLAIMS DEPARTMENT The mission of the corporate claims department is to minimize the overall cost of liability, workers compensation, and property damage claims through competitive cost containment techniques and loss prevention and control programs. SECURITY The mission of corporate security is to provide services for the protection of corporate personnel and assets through preventive measures and investigations.

DRUCKER’S ORGANIZATIONAL OBJECTIVES 1—MARKET STANDING 2—INNOVATION 3—PRODUCTIVITY 4—PHYSICAL & FINANCIAL RESOURCES 5—PROFITABILITY 6—MANAGERIAL PERFORMANCE & DEVELOPMENT 7—WORKER PERFORMANCE & ATTITUDE 8—PUBLIC & COMMUNITY RESPONSIBILITY

POSSIBLE CORPORATE OBJECTIVES… MARKET MARKET SHARE, REPUTATION PROFITABILITY NET PROFITS, ROA, ROE, EPS EFFICIENCY LOW COSTS, REDUCED WASTE, LESS IDLE TIME GROWTH INCREASED UNIT SALES, INCREASED ASSETS CUSTOMER SATISFACTION QUALITY, SERVICE, RESPONSIVENESS EMPLOYEE WELL-BEING ABOVE-AVERAGE WAGES, JOB SECURITY SOCIAL RESPONSIBILTIY ETHICAL BEHAVIOR, CHARITABLE DONATIONS, COMMUNITY SUPPORT SURVIVAL AVOID BANKRUPTCY, KEEP OPERATIONS GOING

FINANCIAL vs STRATEGIC MARKET OBJECTIVES FINANCIAL STRATEGIC MARKET REVENUE GROWTH MARKET SHARE EARNINGS GROWTH INDUSTRY RANK PROFIT MARGINS QUALITY IMAGE DIVIDENDS BREADTH OF PRODUCT LINE BOND OR CREDIT RATINGS CUSTOMER SATISFACTION CASH FLOWS CUSTOMER SERVICE STOCK PRICES INNOVATION EARNINGS STABILITY INTERNATIONAL EXPANSION DIVERSIFIED REVENUE BASE

OBJECTIVES SHOULD… 1—RELATE TO A SINGLE, SPECIFIC TOPIC OR AREA 2—ACT AS GUIDELINES TO INDICATE WHAT NEEDS TO BE ACCOMPLISHED 3—FOCUS ON RESULTS TO BE ACHIEVED, NOT ACTIVITIES TO BE PERFORMED 4—BE CLEAR AND MEASURABLE 5—HAVE A SPECIFIC TIME DEADLINE 6—BE CHALLENGING, BUT ACHIEVABLE (MOTIVATING) 7—ACT AS PERFORMANCE STANDARDS WHICH CAN BE USED TO ASSESS ORGANIZATIONAL PROGRESS AND EFFECTIVENESS

EXAMPLES OF POOR OBJECTIVES OUR OBJECTIVE IS TO… MINIMIZE COSTS AND MAXIMIZE PROFITS INCREASE SALES REVENUES AND UNIT VOLUME BOOST ADVERTISING BY 15 % BE A PIONEER IN RESEARCH AND DEVELOPMENT BE THE MOST PROFITABLE FIRM IN THE INDUSTRY EXPAND OUR SALESFORCE INTO NEW TERRITORIES INCREASE OUR MARKET SHARE IN MEXICO BY 10% AVOID GENERALITIES, BE SPECIFIC STATE IN QUANTIFIABLE OR MEASURABLE TERMS ESTABLISH A DEADLINE FOR ACHIEVEMENT YOU CANNOT MANAGE WHAT YOU CANNOT MEASURE!

EVALUATION OF CORPORATE OBJECTIVES AND STRATEGIES SCAN THE ANNUAL STOCKHOLDER REPORTS… GO BACK 2-3 YEARS AND NOTE WHAT PROMISES WERE MADE IN THE ANNUAL MEETINGS AND STOCKHOLDER REPORTS ARE SPECIFIC PROMISES MADE TO THE STOCKHOLDERS? ARE SOME OF THESE PROMISES QUANTIFIABLE & EASILY MEASURED? (OBJECTIVES) ARE SOME OF THEM ACTION PLANS OR STRATEGIC STEPS THEY INTEND TO TAKE? (STRATEGIES) SEPARATE THESE PROMISES INTO THREE CATEGORIES: FINANCIAL OBJECTIVES, MARKET OBJECTIVES, & SSTRATEGIES NOW REVIEW THE MOST RECENT STATEMENTS & REPORTS DID THE STRATEGIES WORK WELL? SHOULD THEY BE REVISED? WERE THE OBJECTIVES ACHIEVED? DO WE NEED TO CHANGE THEM?