1. VISION, MISSION, VALUES & GOALS

STRATEGIC MANAGEMENT PROCESSPlan strategiesAnalyse external environmentAnalyse internal environmentDevelop/revise vision/missionConsider alternative strategiesImplement the best strategiesDevelop action plans, functional strategies,Balanced ScorecardDevelop structure, culture, leadershipAnalyse success of strategies (control)

CONTENTSVision and/or mission?Vision the dreamsMission the promisesStakeholders of the organisationComponents of a mission statementObjectives of the missionProblems with vision or mission statementsValuesGoals and objectives

Some organisations have a vision statementSome have a mission statementSome have bothSome include objectives and valuesSome simply define the field they are in

VISION AND/OR MISSION?

STRATEGIC VISION AND MISSIONStrategic vision:Vision is a picture of what a firm wants to be and in broad terms what it ultimately wants to achieve.Vision is the foundation for a firms mission.Strategic mission:A mission specifies the business or businesses in which the firm intends to compete and the customers it intends to serve. Hanson, p. 18It should also identify other key stakeholders.

Who are the vision and mission aimed at?Board of directors?Management?Employees?Customers?Suppliers?Media?General public?

VISION THE DREAMS Intent, ambition Purpose, direction Major goals

EXAMPLES OF VISION

NIKE and adidas They call them their mission but these are really visions.http://about.nike.com

To be the leading sports brand in the world.http://careers.adidas-group.com/adidas/mission-and-values.aspx

Bring inspiration and Innovation to every athlete* in the world.*If you have a body, you are an athlete.

The Phoenix Organics VisionWere striving every day to create a business that is good for the planet and great for the health of its people. To do that, we integrate the principles of sustainability into what we do each day. And we want to empower our customers to make a real difference to our world.http://www.phoenixorganics.co.nz/content/why-we-do-it/default.aspx

Vision: 2007-2011

To foster excellence, equity and ethics in learning, teaching, research and scholarship, and in so doing serve our regional, national and international communities

Vision: 2012-2016

Twhaitia te ara o te tika, te pono me te aroha, kia piki ki te taumata tiketike. Follow the path of integrity, respect, and compassion; scale the heights of achievement.

MISSION THE PROMISESIdentification of stakeholdersPromises to those stakeholders.Stakeholders are the individuals, groups and organisations who can affect the firm's vision and mission, who are affected by the strategic outcomes achieved and who have enforceable claims on the firms performance.

Hanson, p. 19

MISSION THE PROMISES Definition of the scope of the organisationWhat fields are we in? (and could/should be) Who are our customers? (and who could/should they be?How do we reach them? (and how could/should we reach them?)Who are the other stakeholders?What should we promise them?What are our values? (What is important?)

STAKEHOLDERSINTERNALDirectorsManagersEmployeesShareholdersEXTERNALCustomers/clientsConsumersSuppliersJoint venture partners and strategic alliesGovernment (local, regional, national, international)PublicIndustry/professional bodiesTrade unions

THE FOUR STAKEHOLDER GROUPSHanson p. 20

PURPOSES OF MISSIONTo identify what businesses we are in or not in.To provide clarity of the direction in which the organisation is going.To provide focus for the activities of divisions, departments and people.To emphasise what is important.To indicate who the stakeholders are and how the organisation intends managing relationships with them.To indicate how resources will be allocated.

COMPONENTS OF MISSION Basic product or service Primary market Principal technology Company goals Company philosophy/creed/values Public image Company self-concept Emphasis on customers needs Emphasis on quality Corporate social responsibility

Pearce & Robinson

http://www.jnj.com/about-jnj/jnj-credo

Example of mission

PROBLEMS WITH MISSION AND VISIONToo vagueToo broadToo narrowToo longToo simple Too complicatedToo staticToo irrelevantToo excluding

Values = what is importantAuthentic, passionate, innovative, inspirational, committed, honesthttp://careers.adidas-group.com/adidas/mission-and-values.aspx

Safety, respect, excellence, courage, one teamhttp://www.bp.com/en/global/corporate/about-bp/company-information/our-values.html

Organic, no genetic engineering, sustainability, ethical consumptionhttp://www.phoenixorganics.co.nz

http://www.thebodyshop.com/values/index.asp

Values 2012-2016integrity, respect and compassion in the pursuit of excellence that espouses creativity,arouses curiosity and critical enquiry in the support of individual students, staff members, and their communities

STRATEGIC GOALS/OBJECTIVESPutting the vision and mission into operationMarket penetrationGrowth of sales, profits, no. of branchesBrand awareness, loyaltyStaff issues recruitment, developmentDevelopment of new products, servicesDevelopment of new functional strategiesEtc

GOALS AND OBJECTIVESGOALS = broad, general

To be a major player in the industryTo cut costs significantlyTo increase market share

To contribute to the community and environment

To have a well-respected brandOBJECTIVES = narrow, specific, measurableTo be number one or two in every product categoryTo cut costs by 10% byTo increase market share by 15% byTo donate $1m to charity inTo reduce our electricity bill by 8% byTo increase our ranking in the top 10 by

THE BALANCED SCORECARDTurning the vision, mission and strategy into specific objectives and plans to achieve them.

Next session: External environmentPlease read:Textbook Chapter 2Chipotle case study (in class we will apply tools from the external environment:PEST+ analysis and Porters Five Forces

***Organic, *