BUSINESS POLICY AND STRATEGY LECTURE 05 Business Strategy

BUSINESS POLICY AND STRATEGY LECTURE 05 Business Strategy and Policy 1

RECAP • SWOT Analysis – Strengths – Weaknesses – Opportunities – Threats • Intuition Analysis Business Strategy and Policy 2

TODAY’S LECTURE • Vision and Mission Statement – Where we are and where we would like to be • What is our business? • “What do we want to become? ” – Examples of Vision and Mission Statement Business Strategy and Policy 3

MISSION STATEMENT • Mission statement answers the question “What is our business? ” Business Strategy and Policy 4

VISION STATEMENT • Vision statement answers the question: “What do we want to become? ” Business Strategy and Policy 5

Vision & Mission • • Many companies develop both Shared vision can motivate employees Develops a commonality of interests Helps focus on opportunity & challenge Business Strategy and Policy 6

Developing Vision & Mission • Clear mission is needed before alternative strategies can be formulated and implemented • Vision statement should be short and preferably one sentence • Important to have as broad range of participation as possible among managers in developing the mission Business Strategy and Policy 7

Example Vision Statement “The Vision of USGS is to be a world leader in the natural sciences through our scientific excellence and responsiveness to society’s needs” -U. S. Geological Survey (USGS) Business Strategy and Policy 8

Example Mission Statement “The Mission of USGS is to serve the Nation by providing reliable scientific information to - Describe and understand the Earth; - Minimize loss of life and property from natural disasters; - Manage water, biological, energy, and mineral resources; and - enhance and protect our quality of life. ” Business Strategy and Policy 9

Example Fauji Cement Company Limited Vision Statement To be a role model cement manufacturing Company, benefiting all stake holders and fulfilling Corporate Social Responsibilities while enjoying public respect and goodwill. Business Strategy and Policy 10

Example Fauji Cement Company Limited Mission Statement While maintaining its leading position in quality of cement maximize profitability through reduced cost of production and enhanced market share. Business Strategy and Policy 11

Characteristics of a Mission statement Mission should do seven things: 1. Define what the organization is 2. Define what the organization aspires to be 3. Limited to exclude some ventures 4. Broad enough to allow for creative growth 5. Distinguish the firm from all others 6. Serve as framework to evaluate current activities 7. Stated clearly so that it is understood by all Business Strategy and Policy 12

Summary • Vision and Mission Statement – “What is our business? ”- Mission Statement – “What do we want to become? ” Vision Statement • Examples • Characteristic of Mission Statement Business Strategy and Policy 13

Next Lecture • Importance of Vision and Mission Statement • Reason for developing a written mission statement • Components of mission statement Business Strategy and Policy 14