Strategic Management

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Strategic Management

• Strategic Management Concepts and Cases, 11/E
  by Fred David

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Strategic formulation
Strategy Formulation

Vision Mission
External Opportunities Threats
Internal Strengths Weaknesses
Long-Term Objectives
Alternative Strategies
Strategy Selection
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Vision

• What do we want to become?
• Agreement on the basic vision for which the firm
  strives to achieve in the long run is critically
  important to the firms success.
• Examples of vision statements
• The Vision of Manley Baptist Church is to be the
  people of God, on mission with God, motivated by
  a love for God, and a love for others
• The Vision of Pepsi To become the leading
  producer and marketer of food and beverage
  products in the world

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Vision
Clear Business Vision
ComprehensiveMission Statement
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Mission Statements

• What is our business?
• Reveal what an organization wants to be and whom
  it wants to serve
• Essential for effectively establishing
  objectives and formulating strategies
• The Mission of Manley Baptist Church is to help
  people in the Lakeway area become fully developed
  followers of Jesus Christ.

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ProductsServices
Markets
Customers

Technology
Mission Elements
Employees
Survival Growth Profit
Public Image
Philosophy
Self-Concept
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The essential components of a mission statement

• Components and Questions That a Mission Statement
  Should Answer
• 1. Customers Who are the firms customers?
• 2. Products or services What are the firms
  major products?
• 3. Markets Geographically, where does the firm
  compete?
• 4. Technology Is the firm technologically
  current?
• 5. Concern for survival, growth, and
  profitability Is the firm committed to growth
  and financial soundness?
• 6. Philosophy What are the basic beliefs,
  values, aspirations, and ethical priorities of
  the firm?
• 7. Self-concept What is the firms distinctive
  competence or major competitive advantage?
• 8. Concern for public image Is the firm
  responsive to social, community, and
  environmental concerns?
• 9. Concern for employees Are employees a
  valuable asset of the firm?

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PepsiCo Mission

• PepsiCos mission is to increase the value of
  our shareholders investment. We do this through
  sales growth, cost controls, and wise investment
  resources. We believe our commercial success
  depends upon offering quality and value to our
  consumers and customers providing products that
  are safe, wholesome, economically efficient and
  environmentally sound and providing a fair
  return to our investors while adhering to the
  highest standards of integrity.

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Ben Jerrys Mission

• Ben Jerrys mission is to make, distribute and
  sell the finest quality all-natural ice cream and
  related products in a wide variety of innovative
  flavors made from Vermont dairy products. To
  operate the Company on a sound financial basis of
  profitable growth, increasing value for our
  shareholders, and creating career opportunities
  and financial rewards for our employees. To
  operate the Company in a way that actively
  recognizes the central role that business plays
  in the structure of society by initiating
  innovative ways to improve the quality of life of
  a broad communitylocal, national and
  international.

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Mission Statement Evaluation Matrix
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Mission Statement Evaluation Matrix
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Question

• Derive a matrix for the following
• Dells mission is to be the most successful
  Computer Company in the world at delivering the
  best customer experience in markets we serve. In
  doing so, Dell will meet customer expectations
  of
• Highest quality
• Leading technology
• Competitive pricing
• Individual and company accountability
• Best-in-class service and support
• Flexible customization capability
• Superior corporate citizenship
• Financial stability