MBA 20011

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The Management School Lancaster University
MNGT220 Week 3 Tutorial 2

• Role of objectives / mission statements
• Strategy lenses

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Strategy Lenses
The Management School Lancaster University

• 1a. Using each of the three strategic lenses,
  describe how the strategy of Dell (Illustration
  1.1, pg. 8-9) can be characterised.

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Strategy Lenses
The Management School Lancaster University

• Design Lens
• The use of financial planning (lower margins) is
  a good example on how the design lens can be used
  to find a strategic position
• The underpinning economic rationale that a
  profitable existence with a lower margin is
  possible in the first place
• This mindset leads to a different approach to the
  operations (cost avoiding)

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Strategy Lenses
The Management School Lancaster University

• Experience Lens
• The translation of B2B experience to the B2C
  sector

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Strategy Lenses
The Management School Lancaster University

• Ideas Lens
• A new business model that departs from the
  industry norm
• This requires boldness and vigilance
  (entrepreneurial characteristic)
• This makes cooperation with suppliers (supply
  chain/ make to order) a main strategic issue
• The idea of giving flexibility to consumers is
  not new emphasis is on the scale of operations

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The Management School Lancaster University
The mission statement of Citicorp
Summary of statement The premise of Citicorps
is to offer an array of products and services of
all its market segments primarily where a
customer need has been established. Its entry
into the the lucrative consumer market has begun
to show signs of positive returns, while the
corporate market continues to remain a highly
profitable segment with strong demands for many
of the products and services Citicorp offers.
Its technological capacity is and will continue
to be a significant driving force behind many
new products and improving upon its global
communications network. Citicorp will also
continue its active participation in legislative
reform since many of the laws in existence today
preclude its activities in various
product-market and geographical segments within
the United States.
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The Management School Lancaster University
Flymo Ltd

• to expand in size, influence and profitability
• to strive to be just that little bit more
  professional than
• our competitors in the total package we present
  to the customer
• to remain in advance of all other world wide in
  air-cushion
• mowers, petrol and electric
• to expand our range of products with other
  quality yard-care
• products (re. garden equipment), which can be
  marketed
• through our existing channels

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The Management School Lancaster University
Statement of mission/objectives purpose why it
exists why it was formed
ethos how an organisation behaves towards
employees / community etc acts as constraint
on means
statement of strategy means how an
organisation proposes to carry out its purpose
and ethos
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The Management School Lancaster University
.... importance of mission/objectives

• define the organisation and its environment
• .... the process of legitimisation

• provide standards to assess organisational
  performance
• help co-ordinate decisions
• a framework for decision maker

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The Management School Lancaster University

• complicated by the nature and number
• of possible objectives e.g. Stakeholder Theory
• owners
• employees
• customers
• public
• suppliers

complicated by the process of formulating
objectives mental frames, value systems,
power relationships, trickle up theories
formulation
nature
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Citicorp
The Management School Lancaster University

• extremely poor example
• legitimises any action by any manager
• language is very insulting to certain
  stakeholders (consumers) lucrative ripping off

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Flymo Ltd
The Management School Lancaster University

• better example
• carefully crafted
• technology specific (aims)
• legitimises technological RD focus
• signals to managers where the focus of resource
  allocation should be
• this mission statement better guides/ empowers
  managers and employees

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Final Points
The Management School Lancaster University

• mission statements should be crafted logically
• however, there is also an underlying ethos
  (compare company culture) that can act as a
  constraint to the objectives if not taken into
  account