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Strategic Management

Strategic Management: Concepts

and Cases, 11/E by Fred David

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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