1. Strategic Management – Mission Aim, Objectives & Stakeholders

2. The Strategic Management Process
Mission and objectives identification
Analysis of business environment
Internal business audit
Review of Strategic Opportunities
Comparison of Strategic Options
Implementation of Strategy

3. The Lynch (2000) Polygon

4. The Business Idea

5. Strategic Direction
Identifying the Organisation’s purpose, aims, objectives and goals

6. Key Issues: 2)The Interested Parties 3)The Method of Communication
1)The Message

7. The Message: Why does the firm exist? What is its aim and objectives?
How will it achieve these?
What strategies?
How will its performance be measured?
Which benchmarks?

8. The Method of Communicating the purpose of the firm
Mission and Vision Statements
A visionary statement concerning the (long term) future direction of the firms, its products, markets and values.
Essential purpose of the organisation

9. Mission Statements Mixed reception:
‘Smoke and mirrors (Barkhus et al (2000)
Building blocks, invisible hand (Strong 1997)
Motherhood statements, the hippocratic or hypocritical oath, lantern, anchor, conscience, office manifesto, company slogan, motto,’ (Fletcher 2001)

10. 2. Vision (or strategic intent)
1. Mission
« An overriding purpose in line with the values and expectations of stakeholders » Johnson & Scholes
Personal example: Be healthy and fit.
2. Vision (or strategic intent)
A strong aspiration; Desired future state
An aspiration around which to focus the attention and energies of members of the organization
Helps thinks creatively about how to prepare a company for the future
Personal example: « To run the London marathon »

11. 3. Aim 4. Strategic Objective
A broadly-worded, general statement of goal or purpose.
Personal example: « To lose weight and gain muscle ».
4. Strategic Objective
A quantification of that goal.
Personal example: « To lose 10 kg ».

12. Mission Statements Often summarises the firms reason for existing
The starting point for recognising the future direction of the firm and therefore the required strategic developments.
Should be:
Simple, Easily Remembered, Impactful
Positive, visionary & motivating
Should outline
Firm’s role
What it wishes to achieve

13. Four Elements in the Mission Statement [1]
Adapted from the Ashridge School (1991)
1)Purpose
Why the firm exists and what it exists to do.
What would happen if the firm did not exist?
2)Strategy
How the firm will achieve its aspirations.
What is it offering?
To whom?
Why should people buy it?
What are its competitive advantages?

14. Four Elements in the Mission Statement [2]
3)Values
What the firm believes in
Why the world will better if the firm succeeds?
4)Behaviour standards
The routines, procedures and policies the firm adopt to fulfil its values
What is the firm willing to do/not do in order to succeed?
How low will it go?

15. Some Mission Statements
Disneyland Paris: To turn the dreams of the young and
young at heart into reality
TUI Nordic: Most satisfied customers and best profitabilty in the business
Hilton International: To always exceed customer expectations by delivering quality service through exceptional teamwork"
McDonald's Corporation: Quality food products; efficient, friendly service; and restaurants renowned
for the cleanliness and value they provide (Sufi & Lyons 2003)

16. Some More…
Otis: To provide any customers means of moving people and things up, down, and sideways over short distances with higher reliability than any similar enterprise in the world
Avis: Our mission is total customer satisfaction
BA: Be the best and most successful company in the airline business
Easyjet:To provide our customers with safe, low-cost, good value, point-to-point air services. To offer a consistent and reliable product at fares appealing to leisure and business markets from our bases to a range of domestic and European destinations. To achieve this we will develop our people and establish lasting partnerships with our suppliers
Kodak: To be the world’s best in chemical and electronic imaging

17. Shangri la Hotels Our Vision
The first choice for customers, employees, shareholders and business partners
Our Mission
Delighting customers each and every time
Our Guiding Principles (Core Values)
We will ensure leadership drives for results.
We will make customer loyalty a key driver of our business.
We will enable decision making at customer contact point.
We will be committed to the financial success of our own unit and of our company.
We will create an environment where our colleagues may achieve their personal and career goals.
We will demonstrate honesty, care and integrity in all our relationships.
We will ensure our policies and processes are customer and employee friendly.
We will be environmentally conscientious and provide safety and security for our customers and our colleagues.

18. Some Visions Tui Nordic = Making holiday dreams come true
Nike (1960s): Crush Adidas
Giro Sport Design (1986): Become the Nike of the cycling industry

19. Organisational Objectives [1]
‘Is an organisation a single period profit maximiser?’
Johnson & Scholes
‘An organisation's objectives tend to emerge as the wishes of the most dominant coalition.’
based on R M Cyert & J G March's 'Behavioral Theory of the Firm' (1996)

20. Organisational Objectives [2]
Generally ‘SMART’:
Specific
Measurable
Achievable
Realistic
Timely
Consistent with the Mission and Aim.
One direction, avoid dissonance!!!

21. Objectives - Examples A larger market share
Quicker design-to-market times than rivals
Higher product quality than rivals
Lower costs relative to key competitors
Broader / more attractive product line than rivals
A stronger reputation with customers than rivals
Superior customer service
Recognition as a leader in technology and/or product innovation
Wider geographic coverage than rivals

22. Objectives - Financial
Increased growth in revenues / earnings/ dividends per
share
Wider profit margins
Attractive ROI
Strong credit ratings
Positive cash flows
Recognition as a blue chip company
Stable earnings during periods of recession
A more diversified revenue base
A rising stock price

23. Some Statements of Objectives
McDonalds: To achieve 100% total customer satisfaction everyday in every restaurant, for every customer
To provide our shareholders with superior returns by achieving double-digit annual earnings per share growth, increasing dividends consistent with earnings growth, repurchasing shares when the opportunity is right, pursuing profitable international beer expansions, and generating quality earnings and cash flow returns
To become the most competitive enterprise in the world by being No.1 or No.2 in market share in every business the company is in
30% of the company’s sales must come from products fewer than 4 years old

24. Interest Groups

25. Stakeholders Definition:
“Stakeholders are groups or individuals who have a stake in, or expectation of, the organisation’s performance .....”
Johnson ,Scholes & Whittington Exploring Corporate Strategy

26. Frames of Reference Functional/ divisional Professional Organisational
(or institutional)
Organisational
The
individual
Industrial/
sector
(recipe)
National
(or regional) 21

27. Stakeholder Mapping: Power/ Predictability
LOW
Unpredictable but Manageable
Few Problems
Power
Greatest Danger or Opportunities
Powerful but Predictable
HIGH
HIGH
LOW
Predictability

28. JUDGEMENTS on Stakeholder Power/Predictability Matrix
Likelihood of each stakeholder group impressing their expectations
Whether they have the means to impress: Power of Stakeholder
Effect of stakeholder expectations on future strategies....

29. Stakeholder Mapping: Power/ Interest
LOW
Minimal Effort
Keep Informed
Power
Keep Satisfied
Key Players
HIGH
LOW
HIGH
Levels of Interest

31. Conclusion Direction priorities will be influenced by key stakeholders
May vary depending on size and complexity of organisations
Small lifestyle businesses may not seek growth
Large complex organisations must be accountable to external owners/shareholders
Corporate social responsibility may be a factor in shaping direction
Managerialism which focuses on return on capital employed/ investment dominates, it is a legal obligation to meet needs of shareholders

32. References
Bartkus B, Glassman m,& McAfee (2000) Mission statements are they smoke and mirrors, Business horizons, Nov./Dec
Fletcher W (2001) Hypocritical oath or mission impossible, The Times 19 January
Raynor ME (1998), The vision thing, do we need it, Long Range Plasnning Vol 31, No.3 pp
Sufi T & Lyons H(2003) Mission statements exposed, International Journal of Contemporary Hospitality management, Emerald, 15/5 pp