unit7 bs lecture 01

8/2/2019 Unit7 BS Lecture 01

1/21

Unit 7 Business Strategies

Lecture 01 - Strategic contexts andterminology missions,

visions, objectives, goals, corecompetencies (P1)


2/21

What is mission statement?

A mission statement is a role, or purpose, by whichan organization intends to serve itsstakeholders.

It describes what the organization does (current

capabilities), who it to serve (stakeholders), andwhat makes the organization unique (justificationfor existence).

Mission statements always exist at the top level of

an organization, but may also be set for differentorganizational levels or components.A mission statement is simply an organization's

reason for existing.


3/21

What does mission statement do?

It tells a companys stories and ideals in lessthan 30 seconds.

It provides the focus on the main business

activitiesIf it is written well, it can help reduce clutter

in other documents and processes.

It can be described as The best way tomake a fire with two sticks is to make sureone of them is a match.


4/21

Missions

For developing missions of any project ororganisation, the following two questions

answers should be written:

1. What are we going to do?

2. How are we going to do it


5/21

Examples of mission statement

Farm fresh company

To become the number one produce store inMain Street by selling the highest quality,freshest farm produce, from farm tocustomer in under 24 hours on 75% of ourrange and with 98% customer satisfaction


6/21

What is a Vision Statement?

Vision statement identifies where the organizationintends to be in the future or where it should beto best meet the needs of stakeholders.

Incorporates a shared understanding of the natureand purpose of the organization and uses thisunderstanding to move the organization towarda greater purpose.

It is a businesss guiding image of success.Destiny is not a matter of chance, but of choice.Not something to wish for, but to attain.


7/21

Why do we need vision?

Vision statement is a tool to inspire andprovide a sense of direction and purpose.

A vision provides the fabric for working

together and accomplishing our goals.A good vision statement will help when there

are no clear answers, or for critical

decisions that will fundamentally impactyour products or services. Control yourdestiny or someone else will!


8/21

What makes a good visionstatement?

It would be short, simple and powerful.

Remember a vision is meant to inspire, hasan emotional impact.

It must give a clear direction or mentalimage to anyone that reads it.

Provide a sense of belonging to thestakeholders. We provide the worldsbuilders.


9/21

How to write mission statement?

Write down your ideas for why you needmission statement for your company.

This is your dream, the thought of successover the next 5 to 10 years.

This is the emotion.

This the path or goal we all must meet.Knowledge is limited. Imaginationencircles the world.


10/21

Examples of visions

1. McDonalds - We are committed Todoing what is right. To being a goodneighbour and partner in the community

To conduct our business with theenvironment in mind

2. Ford our company delivers excellent

products and services and strives tomake the world a better place.


11/21

Difference between mission andvision

As a group of two, write at least twodifferences between mission and vision,and discuss with tutor


12/21

Difference between mission andvision (cont.)

A mission statement describes the *present* stateof a person or organization: "Who are you? Whyare you here? Why do you exist?"

The vision statement describes *future* state:"Who do I want to be? Where do we want togo?" The vision should be inspirational and

slightly out of reach. Typically, it is a person ororganization's vision that provides a frameworkfor planning.


13/21

Objectives

After developing mission statement, objectives arerequired to define. Objectives are much specificthan mission statement

For example- I want to finish my assignment by 10oclock this morning. This indicates to perform a

number of tasks including typing text intocomputer, reviewing some questions/criteria that

have already be written, printing out theassignment for proofreading and so on.


14/21

Objectives (cont.)

Objectives must be evaluated by SMARTER tool:

Specific

Measurable

Attainable

Realistic

Timeframe

Extending

Rewarding


15/21

What is goal?

Goal is a target to achieve within a specifictime. Without goal or aim, you cannot live(lead) your life happily and with the feeling

of satisfaction. Goal can be one or more objectives that

need to be achieved by specific time.

Goal makes one to get clarification to do aspecific task choosing from variousoptions what one thinks of about his future


16/21

Types of goals

Uniform goals

Performance based goals

Potential based goals


17/21

Types of goals - Uniform

A single goal is set for all organizationswithin the Company.

Every organization is expected to meet thesame goal.


18/21

Types of goals - Performancebased goals

Every organization is given a goal thatreflects an increment on last years

performance

Increments are chosen to represent equaleffort for organizations at different startingpoints


19/21

Types of goals Potential basedgoals

Criteria (external and/or internal) are usedto assess organisations potential

Based on criteria of a model or ratings,goals are set by the criteria

Goal = f (criterion)


20/21

Core competencies

The objective of strategic planning process is to assessthe core competencies of a company

Core competencies are a set of unique internal skillsprocesses and system provide competitive advantage in

the market. A company should list functions, activities and skills that

add values to both products and services better thancompetitors.

For example, one function such as research, distribution,marketing or selling can add value to a product and thisfunction needs to be improved continuously to stayahead than other competitors


21/21

Core competencies (cont.)

Core competencies can be defined as the uniquecombination of the resources and experiences of aparticular firm. It takes time to build these corecompetencies and they are difficult to imitate. Critical to

sustaining these core competencies are their: Durability - their life span is longer than individual

product or technology life-cycles, as are the life spans ofresources used to generate them, including people.

Intransparency - it is difficult for competitors to imitate

these competencies quickly. Immobility - these capabilities and resources are difficult

to transfer.

unit7 bs lecture 01

Documents