Strategic Management Lecture 5 - Analysing Resources, Capabilities and Core Competences: Stakeholder Analysis, Organisational Purpose and Organisational Vision NCC Education - Title Master

Overview of This Lecture Who is a stakeholder? Some views Examine various ways of analysing stakeholders for an organisation Appreciate the importance of stakeholder analysis in strategy formulation Explain ‘Mission’ and ‘Vision’ and provide some examples of mission statements

Stakeholders An organisation’s stakeholders are individuals or groups that may have an interest, claim, or stake in the organisation, in what it does, and in how well it performs Stakeholders could also be viewed as individuals, groups and even organisations who have a level of involvement in the organisation’s decision making process “Stakeholders are those individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn, the organisation depends” (Johnson, Scholes &Whittington) Stakeholders could be internal or external

ABC University and Its Stakeholders – 1 Local Community Employers Business Community Prospective Students A B C University Central Government Current Students Local Government Alumni Parents of Students Funding Bodies

ABC University and Its Stakeholders – 2 Quality Assurance Agencies Faculty Support Staff Governors A B C University Other Universities and Higher education Institutions Trusts/ Foundations Legislators Schools and Colleges Suppliers Research Bodies

The Six Markets Organisation Customer markets Influencer Referral Supplier markets Recruitment markets Internal markets Source: Peck , Payne, Christopher, Clark (1999) Relationship Marketing , strategy and implementation , Butterworth Heinnemann

Why is Stakeholder Mapping Useful? This helps identify: First, the various individuals, groups and organisations that may have an interest in the organisation, and their level of interest Second, the individual level of expectation as well as whether they yield any power on the organisation’s activities

Role of a Stakeholder The role should be to take an interest and also possibly make a positive contribution to the success of the organisation Clearly this is more likely to happen in organisations which empower stakeholders to have a say in the decision making process

Stakeholder Mapping: Power Interest Matrix Low High Low Power High Source: Johnson , Scholes , Whittington (2008) Exploring Corporate Strategy , FT Prentice Hall

Organisational Vision and Mission Whilst some view the two as the same, it is useful to view them separately An organisational vision can be viewed as a broad comprehensive picture of what the leadership of the organisation want the organisation top become It is a statement of what the organisation stands for, what it believes in, and why it exists The organisational vision usually provides a vibrant and compelling picture of the future

Organisational Vision A vision is an image that grows out of a firm understanding of the areas of interest BUT That is produced by imagination and creativity Organisational visions are usually aimed at empowering people to see what isn’t there yet, but what an organisation could bring about or achieve Typically they suggest a direction with intentions so compelling that the entire organisation is to share that vision

Organisational Mission A mission would indicate what specific organisational department or units do and what they hope to accomplish in alignment with the organisational vision

Mission Statements – 1 A mission statement is therefore a general declaration of the purposes of the organisation and the long term objectives that its leadership want to achieve The best examples are written in an inspirational tone to provide a focussed and motivating document for the organisation and its employees

Mission Statements – 2 A corporate mission statement indicates how an organisation intends to incorporate stakeholder claims into its strategic decision making It is a key indicator of how an organisation views the claims of its stakeholders

What Does a Mission Statement Contain? Whilst there is no right or wrong way, in practice mission statements usually contain one or more of the following: Some identification of the organisation’s business or industry A realistic indication of the market position the organisation should aim towards A brief summary of the values and beliefs of the organisation

Elements of a Mission Statement Corporate mission statements are usually built around three main elements: A declaration of the overall vision, or mission of the organisation A summing up of the key philosophical values that management is committed to An articulation of key goals that management believes must be adhered to in order to attain the vision, or mission that are consistent with the values of management

Organisational Values Values of an organisation state how managers intend to conduct themselves, how they intend to do business, and what kind of organisation they want to build Values are seen as the bedrock of an organisation’s culture and a key driver of its competitive advantage

Organisational Goals A goal is a desired future state an organisation attempts to realise Goal characteristics: precise and measurable address important issues challenging but realistic work to a time frame

Example of Mission Statement – Liverpool City Council To make Liverpool a premier European City by developing a more competitive economy, building healthier, safer and more inclusive communities and enhancing individual life chances

Example of Mission Statement – Microsoft At Microsoft, our mission and values are to help people and businesses throughout the world realize their full potential Source : http://www.microsoft.com/about/default.mspx

Example of Mission Statement – Google Google’s mission is to organise the world’s information and make it universally accessible and useful Source : http://www.google.com/corporate/

NCC Education Vision: Mission: To be a global leader in the certification and delivery of quality British higher education programmes in transnational markets Mission: Students are our focus. We are committed to providing a service that exceeds your needs and expectations Source : http://www.nccedu.com/AboutUs/index.asp

Strategic Business Vision This focuses on the strengths and limitations of the organisation along with opportunities that it encounters and assesses how (for example) Information Technology can be used to bring about that vision

Conclusions An organisation’s stakeholders have an influence on the shaping of its strategy Stakeholder mapping is an useful exercise, which helps understand expectation, interest, power and purpose of different stakeholder groups Organisational Vision is a statement of what the organisation stands for, what it believes in and why it exists. Vision usually provides a vibrant and compelling picture of the future A mission would indicate what specific organisational department or units do and what they hope to accomplish in alignment with the organisational vision

NCC Education - End Slide Master