Mission

1
Chapter 2
Mission Objective Strategy
Strategy is the commitment to undertake one set
of actions rather than another.
2
Characteristics of a Strategic Vision

• Charts a companys future strategic course
• Defines the business makeup in 5 to 10 years
• Company specific, not generic
• Provides a company with its own special identity
  and path to follow
• The vision is not to make a profit
• The real mission/vision is what will we do to
  make a profit?
• Requires the exercise of management foresight

3
Example Strategic Vision
DELTA AIRLINES

• . . . . . . we want Delta to be the WORLDWIDE
  AIRLINE OF CHOICE.

4
Example Strategic Vision
DELTA AIRLINES

• WORLDWIDE, because we are and intend to remain an
  innovative, aggressive, ethical, and successful
  competitor that offers access to the world at the
  highest standards of customer service. We will
  continue to look for opportunities to extend our
  reach through new routes and creative global
  alliances.

5
Example Strategic Vision
DELTA AIRLINES

• AIRLINE, because we intend to stay in the
  business we know best -- air transportation and
  related services. We wont stray from our roots.
  We believe in the long-term prospects for
  profitable growth in the airline industry, and we
  will continue to focus time, attention, and
  investment on enhancing our place in that
  business environment.

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Example Strategic Vision
DELTA AIRLINES

• OF CHOICE, because we value the loyalty of our
  customers, employees, and investors. For
  passengers and shippers, we will continue to
  provide the best service and value. For our
  personnel, we will continue to offer an ever more
  challenging, rewarding, and result-oriented
  workplace that recognizes and appreciates their
  contributions. For our shareholders, we will
  earn a consistent, superior financial return.

7
Defining a Companys Business

• A good business definition incorporates three
  factors
• Customer needs -- WHAT is being satisfied
• Customer groups -- WHO is being satisfied
• Technologies used and functions performed -- HOW
  customer needs are satisfied

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Mission Statementof a Diversified Firm

• TIMES MIRROR CORPORATION
• Times Mirror is a media and information company
  principally engaged in newspaper publishing
  book, magazine and other publishing and cable
  and broadcast television.

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Intels Strategic Inflection Points

• Pre - mid 1980s
• Business focus was memory chips
• Post - mid 1980s
• Abandon memory chip business
• Adopt new strategic vision
• Become preeminent supplier of microprocessors
  to PC industry
• Make PC central appliance in workplace and
  home
• Be undisputed leader in driving PC
  technology forward

10
Communicating the Vision

• An exciting, inspirational vision
• Inspires, challenges, and motivates workforce
• Arouses strong sense of organizational purpose
  and induces employee buy-in
• Brings workforce together and galvanizes people
  to live the business

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Purpose of Objectives

• Substitutes results-oriented decision-making for
  aimlessness over what to accomplish
• Provides benchmarks for judging organizational
  performance

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Types of Objectives Required
Financial Objectives
Strategic Objectives

• Outcomes that improve a firms financial
  performance

• Outcomes that strengthen a firms competitiveness
  and long-term market position

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Examples Strategic Objectives

• A bigger market share
• Quicker design-to-market times than rivals
• Higher product quality than rivals
• Lower costs relative to key competitors
• Broader product line than rivals
• A stronger reputation with customers than rivals
• Better customer service than rivals
• Recognition as a leader in technology
• Wider geographic coverage than rivals
• More innovative products than rivals

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Strategic or Financial Objectives --Which
Take Precedence?

• Pressures for better short-term financial
  performance become pronounced when
• Firm is struggling financially
• Resource commitments for new strategic
  initiatives may hurt bottom-line for several
  years
• Proposed strategic moves are risky
• A firm that consistently passes up opportunities
  to strengthen its long-term competitive position
• Risks diluting its competitiveness
• Risks losing momentum in its markets
• Can hurt its ability to fend off rivals
  challenges

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The Concept of Strategic Intent

• A company exhibits STRATEGIC INTENT when it
  relentlessly pursues an ambitious strategic
  objective and concentrates its competitive
  actions and energies on achieving that objective!