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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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 :

21. Example of Mission Statement – Google
Google’s mission is to organise the world’s information and make it universally accessible and useful
Source :

22. 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 :

23. 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

24. 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

25. NCC Education - End Slide Master