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8/3/2019 Lecture 2 Strategic Formulation 06-07
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Strategic Management
Strategic Management: Concepts
and Cases, 11/E by Fred David
http://vig.prenhall.com/catalog/academic/product/0,1144,0131869493-IS,00.htmlhttp://vig.prenhall.com/catalog/academic/product/0,1144,0131869493-IS,00.htmlhttp://vig.prenhall.com/catalog/academic/product/0,1144,0131869493-IS,00.htmlhttp://vig.prenhall.com/catalog/academic/product/0,1144,0131869493-IS,00.html8/3/2019 Lecture 2 Strategic Formulation 06-07
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Vision & Mission
Strategy Formulation
External Opportunities & Threats
Internal Strengths & Weaknesses
Long-Term Objectives
Alternative Strategies
Strategy Selection
Strategic formulation
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Vision
What do we want to become?
Agreement on the basic vision for whichthe firm strives to achieve in the long run iscritically 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 andmarketer of food and beverage products in the world
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ComprehensiveMission Statement
Vision
Clear BusinessVision
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What is our business?
Reveal whatan organization wants to be
and whomit wants to serve
Essential for effectively establishingobjectives and formulating strategies
The Mission of Manley Baptist Church is to helppeople in the Lakeway area become fully developed
followers of Jesus Christ.
Mission Statements
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MissionElements
CustomersMarkets
Employees
PublicImage
Self-Concept Philosophy
SurvivalGrowthProfit
ProductsServices
Technology
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The essential components of amission 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 togrowth 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 ourshareholders investment. We do this through
sales growth, cost controls, and wise investmentresources. We believe our commercial success
depends upon offering quality and value to ourconsumers and customers; providing productsthat are safe, wholesome, economically efficientand environmentally sound; and providing a fairreturn to our investors while adhering to thehighest standards of integrity.
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Ben & Jerrys Mission
Ben & Jerrys mission is to make, distribute andsell the finest quality all-natural ice cream andrelated products in a wide variety of innovativeflavors made from Vermont dairy products. Tooperate the Company on a sound financial basisof profitable growth, increasing value for ourshareholders, and creating career opportunitiesand financial rewards for our employees. Tooperate the Company in a way that actively
recognizes the central role that business plays inthe structure of society by initiating innovativeways to improve the quality of life of a broadcommunitylocal, national and international.
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Mission Statement Evaluation Matrix
COMPONENTS
Organization CustomersProductsServices Markets
Concernfor
Survival,
Growth,Profitability Technology
PepsiCo
Ben & Jerry's
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Mission Statement Evaluation Matrix
COMPONENTS
Organization PhilosophySelf-
ConceptConcern forPublic Image
Concern forEmployees
PepsiCo
Ben & Jerry's
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Question:
Derive a matrix for the following:
Dells mission is to be the most successful Computer Company inthe world at delivering the best customer experience in markets weserve. 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
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