Rumki_Vision and Strategic Direction 3500_april 13_sent Black Plaz Solved

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Unit 7.11 Developing Organizational Vision and Strategic Direction

Table of Contents

Table of Contents....................................................................................................... 1

2.3 Assess ways of communicating the vision to external stakeholders.................9

3.4 Outline the strategic planning process for an organization.............................12

References................................................................................................................16


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Unit 7.11 Developing Organizational Vision and Strategic Direction

Introduction

A business organization needs to follow a encouraging, ambitious and inspirational direction to

take itself to summit of success. A vision can play this role to develop organizational

effectiveness and may contribute and design the strategic direction as well. In these essay

different aspects of vision and strategic direction is discussed.

1. Understand how to develop a vision for an organization

A vision is an important statement, which guide and motivate an organization and its employees

to achieve its operational objectives. In this section, the role of key stakeholders and their

relationship to vision is discussed. Besides, factors which are impacting organization and its

vision is discussed with necessary clues on strategic direction. In this assignment, for the

convenience of referral, McDonald is chosen.

1.1. Assess the role of key stakeholders in relation to the vision

To assess the role of key stakeholders relating to vision statement of McDonalds, the nature of

vision need to be understood. A vision sets out what the organization wants to accomplish, and

should inspire members, staff and supporters. Vision statements may describe:

how things would be different as a result of the organizations activitieseg.

Canadian Cancer Society: Creating a world where no Canadian fears cancer

how the organization wants to be seen by otherseg. Canadian Institute of

Chartered Accountants: We are Canadas most valued, internationally recognized

profession of leaders in senior management, advisory, financial, tax and assurance roles

Good visions are aspirational. Some are hardtoreach ideals while others are more modest or

describe objectives that are achievable in the near future. In either case, the vision helps establish

the unique contribution that the organization makes to society. From a practical perspective a

vision can be a quick, memorable way to describe the organizations reason for being. This can

be valuable in times of crisis when it helps to remember what is really important. The vision and


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mission are often published in the organizations annual reports, brochures and fundraising

materials. now in the following figure, different types of stakeholders of mcdonalds is showed.

There three different catagories of stakeholders are found.

Figure 1: The Three Stakeholder Groups (Hitt et al 2007)

It is crucially important to stakeholders that organizations are well led and know what they want

to be famous for. At its core is having strong organizational vision and direction, and having the

confidence to make decisions to follow this through. We have found that those organizations that

rate best among their stakeholders are those with the greatest clarity of purpose stakeholders

want to know what an organization is doing to add value to them. Critics typically mention that

they are unclear about the role of an organization or the value that it provides:

There isnt a clear vision about what their role is, I dont think. They seem to be faced with

constant change about what their role should be.

Just as with customer satisfaction, stakeholder perceptions while influenced by

communications have to be built on a solid base. An organization that is clear about its

objectives and successfully meets them will be recognized as such by stakeholders. This means


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that good stakeholder management is about much more than PR or spin it gets to the heart

of the effectiveness of an organization.

1.2. Analyze factors that will impact on the organization and its vision

There are different factors which can have impact on the organization and its vision. For

different companies, PESTLE is analysed very common for the identification of the condition

and placement of an organization. in the following section . The meanings of various PESTLE

categories are discussed broadly in the next section. But initially brief contents or each category

are given below-

Political factors covers mostly about the government and its policy imposed on the economy

based on political interest. A vision can be affected by political factor, such as tax policy for

pricing, labor law for compensation management, environmental law for protection, trade

restrictions, tariffs on imports and exports, and political instability. Furthermore, some nations

put some restriction on different products based on their political interest, they have two different

priorities and restricts for goods they wanted and goods they do not wanted. In this case the

company need set its vision congruent with the political policies and intervention.

o The international operations of McDonalds are highly influenced by the

individual state policies enforced by each government.

Economic factors is very important for a business to start and to continue its profitability.

Economic factors which can affect vision negatively include decreasing rate of economic

growth, high interest rates, higher exchange rates and the higher inflation rate. Economic factors

have significant impact on business operation and decision making regarding investment and

costing.

o

For McDonald, it has created a favorable economic condition in differentcountries in the world. Though it has to experience hardship when economy falls

and change occurs in exchange rates.

o But the company has a position of Market leader in different countries

o Very high target market.

o Low cost and more incomes.


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o The rate at which the economy of that particular state grows determines the

purchasing power of the consumers in that country.

Among the other elements of PESTLE, Social factors are having less impact and it is

manageable in some cases very easily compare to other elements. Social factor include different

cultural aspects, health consciousness of the citizen, population growth rate, inhabitants age

distribution, career attitudes and aspirations, priority and emphasis on safety. Social factors can

impact on preparation of vision, by the demand manipulation of a company product and

acceptability of product feature with company nature as well.

Working within many social groups.

Increase employments.

Technological factors are involve with different technological improvement and up gradation in

different function of a business and the factors which may negatively affect the vision statement

of a company, low chance to research and development activity for product development, no

opportunity to automation, unavailability of technology incentives and the rate of technological

change is very frequent.

o Advanced technology development.

o Quality standards.

There are different types of legal factors which may intervene on the nature and operation of a

business and as it may affect a business, to vision can also be affected. The legal factors which

can affect a vision of a company include discrimination law, consumer law for safe practice of

foods, antitrust law for intellectual rights, employment law controlling labor practice, and health

and safety law etc.

o Quality packing.

o Local manufacture using foreign supplies.

Lastly, Environmental factors may also affect the nature and contents of a vision statement. As

the environment become important for the survival of human kind, businesses should not do


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anything which may harm environment. For this reason, in almost every country in the world,

people want to protect environment from business and its by products. The environmental factors

include ecological and environmental aspects such as weather types and its trend, climate change

and its frequency etc, these environmental factors can affect the vision statement tourism,

farming, and insurance based businesses. For McDonalds, the impact of environmental factors

can be on

o Legislation for product based on environment

o Sustained logo.

Apart from the PESTLE factors, other factor which may have impact include Government policy

and legal requirements in a market, regulatory and accountability factors for control and guidethe , best practice and industry trends, global factors, gathering data on factors

1.3. Create a vision for an organization

As written in the earlier sections, that vision is a guidance to set up a mission and establish the

values to achieve and fulfill it. In the following section, the vision, mission and value statements

of Mcdonalds are written below.

McDonald's vision is emphasis on two elements, firstly, be a best quick service restaurant and

secondly, maintain quality, service, cleanliness for ensuring value of the product and the

customer as well. But the vision may be strengthened if the statement added with employee

engagement and empowerment. The organization is not only for consumer satisfaction but it is

for employee satisfaction as well.

Mission & Values

McDonald's brand mission is to be our customers' favorite place and way to eat. Our worldwide

operations are aligned around a global strategy called the Plan to Win, which center on an

exceptional customer experience People, Products, Place, Price and Promotion. We are

committed to continuously improving our operations and enhancing our customers' experience.


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McDonalds Values

We place the customer experience at the core of all we do.

We are committed to our people.

We believe in the McDonalds System.

We operate our business ethically.

We give back to our communities..

We grow our business profitably.

We strive continually to improve. (about McDonalds 2011)

1.4. Determine the strategic direction for the organization

To determine the strategic direction for the organization, there are different tools and techniques

available for the analysis. In the following figure, the BCG matrix is used to determine the

strategic direction of the organization. The product portfolio suggests the following strategies for

products or business units falling into certain categories:

cash cow milk and redeploy the cash flow

dog liquidate or divest and redeploy the freed resources or proceeds

star strengthen competitive position in growth industry

Question invest as appropriate to secure and improve competitive position.


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Here the evaluating factor and criteria for analysis is the growth rate and relative market share.

Based the recent financial and operational performance, Mcdonalds

2. Understand how to communicate the vision to stakeholders

After setting up a vision statement, the success and implementation of the vision statement is

depend on the effective promotion and communication of the vision to the different stakeholders.

For that reason, In this section different perspective of communicating vision to stakeholders is

discussed.

2.1. Analyze methods to communicate the vision to engage and inspire others

within the organization

In the organization there are both external and internal group of stakeholders. And it is very

important that the stakeholders and their interest should be in line with the vision statement of

the company. In McDonalds, the vision identified earlier, should be communicated properly to

get the best performance from the business operation. There are different methods to

communicate the vision to inspire others in the organization. These include the following-

Presentation using multimedia

Question

Marks

Cash Cows Dogs

Relative Market Share

Position

IndustrySalesGrowthRate

StarsMCD

Figure 2: Strategic direction for McDonalds


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Stressing importance about implementation of the vision

Gaining agreement with the stakeholders about the nature and the outcome of the vision

Establish different corporate style for communicating vision to stakeholders

Develop different communication tools and techniques and promotion to let the distance

stakeholder

For the stakeholders who are reachable in very short time, can be communicated easily, but for

the distant stakeholders like government, pressure groups, regulators etc need to be considered

specially to communicate the vision to them.

2.2 Assess how to build support for the vision within the organization

In a big organization like McDonalds, building support for the vision within the organization is

crucial for the future growth and survival of the company. To build support for the vision,

McDonalds, should do the following -

Communicating clearly and effectively,

Maintain equality in every parts of the business

Face and justify the challenging behaviours based on effective communication

Deters attitudes that do not support vision,

Improve and strengthen the negotiation skills,

Change the system if it favors the new vision or support the operation in the new vision

guided operation.

2.3 Assess ways of communicating the vision to external stakeholders

There are different ways to communicate the vision of McDonalds to its external stakeholders. In

the earlier section, the communication method described and analyzed were for both external and

internal stakeholders. External stakeholders are not easy to reach and convenient. For this reason,

there should be some different and effective ways to communicate with external stakeholders.

The ways to communicate with external stakeholders include the following

Arrange adequate promotion of the vision statement


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Analysis of the benefits of the new vision and promote the benefits as well

Include a feedback mechanism in the communication system, so that it can help to

strengthen the communication process by repairing it continuously based on the

feedbacks

McDonalds may add cost benefit analysis to show importance and necessity of the vision

and its incremental benefits overlapping the cost.

3. Understand how to implement the vision and strategic direction within the

organization

Now we have understood the vision of McDonalds and its strategic direction. The next step is to

implement the division and strategic direction in the organization.

3.1 Analyze leadership behavior to promote the vision within the organization

McDonalds is a very large fast food chain in world. And it has operation in different countries,

culture, regions, community; ethnicity etc. to keep the vision encouraging for all its employees

and make it a directive for the company, McDonalds needs to have congruent leadership

behavior. For promoting the vision of McDonalds, the managers and staffs need to have some

important leadership behavior, which may include-

Being a Role Model for Integrity & Ethics

Establishing a Vision & Mission for set priorities and preferences

Setting Strategy & Priorities for upcoming objectives and targets

Building High Performance Teams and encourage team work

Motivating & Inspiring Others for goal attainment

Delegating new and potential clients & Empowering employees for skill

development

Listening and Communicating to employees and staffs

Managing & Evaluating Performance in bias free mode

Coaching & Developing Talent with integrity and honesty

Managing Complexity & Ambiguity (Arneson 2009)


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In the top leadership behaviors, it can be noticed that these behavior related to consultative and

participative leadership and management style. Apart from that, this leadership behavior, specially

listening, communicating, setting strategy and priorities etc are very supportive to promote the vision and

mission of a company. Besides, managing change resulting from new vision statement or modification in

vision statement is very important to promote vision in a company. As McDonalds is a large company

and it has lots of workers around the world, so it need be more careful in change management and there

one should play the role of initior for the change adaption and then spread it in the whole organization. In

this case personal credibility and belief is very important and necessary for effective promotion of vision.

3.2 Assess how the vision can be embedded within the organization

To embed the vision, McDonalds can have a number of options or set of activities to do.

Adaption and understanding is important in the embedding process for vision. In the vision ofMcDonalds, they have given emphasis on quick service and quality customer service as well. But

the employees should be priorities in this vision as well, because the vision guide the staffs and

employees. There are different tools to use to embed the vision in McDonalds; the tools include

the following-

top down, , in this process, embedding is started from the top level management of an

organization and continue to bottom level.

bottom up, this embedding process is opposite to top down approach

consultative styles, taking opinion and suggestion from all levels and then make an

effective embedding process of vision after change adoption

to used these tools , an employee or manager needs to identify procedures, activities, values

related to the vision statement and work on it as guided by the above tools. In this case it may

demand change in language which is not consistent with vision and replacing them; or updating

the organizational culture to promote vision and go for it .

3.3 Translate the vision into organizational objectives to set the strategic direction


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McDonald's vision is to be the world's best quick service restaurant experience. Being the best

means providing outstanding quality, service, cleanliness, and value, so that we make every

customer in every restaurant smile and the synergies is created from the congruent mission

statement and value statement as described in the previous section. If the strategic objective of

McDonalds is to be the top and the number one fast food chain in the world, the vision statement

is effectively in line with the strategic objective. And the link between the vision and operational

objectives, devise a very efficient way to their goal fulfillment.

In this way, McDonalds, become the top performers among the worlds leading fast food chains

include subway, KFC, Burger King etc. and it can be found that the key competitive advantage is

the quick but quality service to correct segment of a fast food market. In the translation of vision

into the organizational objective, the role of stakeholders is the crucial one and without the role

fulfillment, it may not be possible to attain those strategic objectives in a correct direction.

3.4 Outline the strategic planning process for an organization

To prepare a outline of a strategic planning process, the key components of the process needs to

be known. There are four major part of the strategic planning process, which is showed in the

following figure.

Vision and mission statements are discussed in the previous sections. Values are beliefs that are

shared among the stakeholders of an organization. In setting an organizations future, a value

plays an important role, because a value of an organization set priorities and culture within which


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the operations of the business are surrounded. To make decisions, another important thing is

need with vision, mission, values; which is strategy. It sometimes referred as the art of general.

Strategic planning process

There are different types of strategic planning process and the processes are sometime looks very

simple and sometimes very complex. In the following section, two different strategic planning

process is illustrated.

Situation-Target-Proposal

Situation - evaluate the current situation of a business and analyze the source of the

problem as well.

Target define and determine the goals and/or objectives to be targeted

Path / Proposal - map a possible route to completely achieve the goals/objectives

Another approach of strategic planning is the Draw-See-Think-Plan approach, there based on the

flow of information and system drawn by the process, a plan is prepared for the strategy

development. In the following figure , the step by step process of anther approach of strategic

planning is shown-


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Figure 3: Draw-See-Think-Plan approach

Draw

SeeThin

k

Plan


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The strategic planning process can be customized according to the need of an organization and to

congruent with the operational design. But the major steps will be the same as written in the

above section.

Conclusion

Strategic planning is a foundation of set an effective strategy for organizational effectiveness and

business success. In this matter, vision is an important element which guides strategic direction

to the right way. So taking insights from experts and stakeholders with the direction of vision an

organizational can achieve its mission and business objectives.


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References

About McDonalds (2011) vision, mission and values of McDonalds, retrieved from

http://www.aboutmcdonalds.com/mcd/our_company/mission_and_values.html

Arneson, S. (2009) The 25 most important leadership behaviors. retrieved

from http://www.examiner.com/leadership-in-national/the-25-most-important-

leadership-behaviors

Dobson, P.;Ken Starkey,K. annd John Richards (2004) Strategic management : issues and cases

2nd ed. Baskerville: Blackwell publishers

Hitt,M. A. ; Ireland, R. D. and Hoskisson, R. E. (2007) Strategic Management:

Competitiveness and Globalization (Concepts and Cases), Seventh Edition. London:south western cengage learning

Kaplan, R. S.; Norton, D.P. and Burrows Jr., E.A. 2008 Developing the strategy:

Vision, value gaps and analysis. Balance Score card Report, January-February

issue

Maker, A. (2011) Three leadership behaviors of successful project managers.

Retrieved from http://www.techrepublic.com/blog/tech-manager/three-

leadership-behaviors-of-successful-project-managers/5643

Morden, T. 2007 Principles of strategic management, 3rd ed. Hampshire:

Ashgate Publishing Limited

Pearce II, J. A. & Robinson, R. B. 2005 Strategic Management, Formulation,

Implementation, and Control. 9th ed. New York-McGraw-Hill

Thompson, J. & Martin, F. 2007 Strategic management, 5th ed. New York-

McGraw-Hill
http://www.aboutmcdonalds.com/mcd/our_company/mission_and_values.htmlhttp://www.aboutmcdonalds.com/mcd/our_company/mission_and_values.html

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