1. Bus 411 Day 3 Copyright 2005 Prentice Hall1

2. Ch 1 -2 Agenda Question? Assignment 1 due January 30, Next Class  We will be working a collective SWOT for McDonald’s during the next class to be used for the next two assignments Discussion on Mission and Vision Statements

3. Assignment 1 Due Jan 30 @ 12:35 PM Complete the Assurance of Learning Exercise 1A on page 37 of your text with the following modifications. This assignment is intended to be an individual assignment, do your own work. Step 1. McDonald’s website has changed since the publication of this text. To get the annual reports, do the following; Go to www.mcdonalds.com On the red menu, place your mouse pointer on “OUR STORY” and select “Corporate Info” from the drop down menu. On the Corporate Info page click on the “ find out what drives our business” link. Click on the “annual reports” link in the top left of the resulting page. Save the 2009 Annual report to your computer. There is no need to print the report.www.mcdonalds.com Step 2 The UMFK library does not subscribe to Standards and Poor but you get industry surveys from the Business & Company Resource Center (Search MCD) and the Value Line Research Center (select “Plus Edition>Look Up Company”. You can get Company and Industry reports from both databases; the databases can be found by selecting the topic “Business” under the Articles for Research link on the Blake Library web page. Skip step 5, we will do this in class to create a collective SWOT analysis for McDonalds. This collectively created SWOT analysis will be required for future assignments. Upload a Word Document with your 12 responses (3 Strengths, 3 Weaknesses, 3 Opportunities & 3 Threats) Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -3

4. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -4 Chapter 2 The Business Vision & Mission Strategic Management: Concepts & Cases 13 th Edition Fred David

5. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -5

6. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -6 “The last thing IBM needs right now is a vision.” (July 1993) Vision “What IBM needs most right now is a vision.” (March 1996) – Louis V. Gerstner, Jr., CEO, IBM Corporation What happened between 1993 and 1996?

7. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -7 Vision Agreement on the basic vision for which the firm strives to achieve in the long term is especially important.

8. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -8 “What do we want to become?” Vision

9. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -9

10. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -10 Vision Statement Examples Tyson Foods’ vision is to be the world’s first choice for protein solutions while maximizing shareholder value.

11. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -11 General Motors’ vision is to be the world leader in transportation products and related services. Vision Statement Examples

12. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -12 PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today. Vision Statement Examples

13. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -13 Dell’s vision is to create a company culture where environmental excellence is second nature. Vision Statement Examples

14. UMFK Vision Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -14 The University of Maine at Fort Kent will be a leading small public university in student success through quality academic programs and our hallmark experiential learning, which build upon our unique rural, environmental, and Franco-American cultural heritage. We are therefore committed to: Holistic development of students through active engagement in scholarly and co-curricular activities designed to support success of academic, personal, and social goals Affordable and accessible education High quality education by making academic excellence pervasive through strong liberal-arts based education, high impact teaching and learning strategies, and program accreditation Core and signature programs that transform students for ethical lives, productive careers, and responsible citizenship within a changing global community Expansion of educational programs through innovative technology and distance learning Academics centered around a hallmark of experiential learning incorporated in each program that builds upon our distinguishing characteristics of culture, rural environment, and international location as the foundation of a broad- based educational experience A sense of community through personalized faculty-to-student interactions and a small student-to-faculty ratio Development of a distinctly rural-based identity and sustainable practices through realization of the Center for Rural Sustainable Development mission Transformational learning through interactive study and immersion in Northern Maine's pristine natural environment, historic community, and great outdoor sports and recreation Promoting our distinctive identity as the cultural and intellectual center of northern Maine Actively engaging in the revitalization of the unique Acadian and Franco-American heritage, culture, and language of the St. John Valley through the realization of the Acadian Archives/Archives acadiennes mission Preparing successful students via quality of place, people, and education, thereby providing students with quality of life and work

15. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -15 Comprehensive Mission Statement Vision Clear Business Vision

16. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -16 Answers the question:  “What is our business?” Reveals:  what the organization wants to be  whom we want to serve Mission Statement

17. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -17 An enduring statement of purpose that distinguishes one organization from other similar enterprises A declaration of an organization’s “reason for being” Mission Statement

18. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -18 Mission Statements are also called Creed statement Statement of purpose Statement of philosophy Statement of beliefs Statement of business principles A statement “defining our business”

19. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -19 Vision & Mission Great benefits can be achieved if an organization  Systematically revisits their vision and mission statement  Treats them as living documents  Considers them to be an integral part of the firm’s culture

20. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -20 Vision & Mission Profit & vision are necessary to effectively motivate a workforce

21. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -21 Vision & Mission Shared vision creates a community of interests

22. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -22 Developing Vision & Mission A clear mission is needed before alternative strategies can be formulated and implemented

23. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -23 Developing Vision & Mission Participation by as many managers as possible is important in developing the mission because through involvement people become committed to an organization

24. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -24 Steps to Developing Vision & Mission Statements 1. Have managers read related articles 2. Have managers prepare a vision and mission statement for the organization 3. Merge the documents into one and distribute 4. Gather feedback from managers 5. Meet to revise the final document

25. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -25 Benefits of Mission Statements Better financial results Unanimity of purpose Resource allocation Establishment of culture Focal point for individuals Establishment of work structure Basis of assessment and control Resolution of divergent views

26. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -26

27. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -27 Resolution of Divergent Views A genuine decision must be based on divergent views to have a chance to be a right and effective decision Considerable disagreement over vision and mission statements can cause trouble if not resolved

28. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -28 Vision & Mission Statements Provide unity of direction Promote shared expectations Consolidate values Project a sense of worth and intent Affirm the company’s commitment to responsible action

29. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -29 Broad in scope Generate strategic alternatives Not overly specific Reconciles interests among diverse stakeholders Finely balanced between specificity & generality Broad in scope Generate strategic alternatives Not overly specific Reconciles interests among diverse stakeholders Finely balanced between specificity & generality Declaration of Attitude

30. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -30 Arouse positive feelings & emotions Motivate readers to action Generate favorable impression of the firm Arouse positive feelings & emotions Motivate readers to action Generate favorable impression of the firm Declaration of Attitude

31. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -31 Reflect future growth Provide criteria for strategy selection Basis for generating & evaluating strategic options Dynamic in nature Reflect future growth Provide criteria for strategy selection Basis for generating & evaluating strategic options Dynamic in nature Declaration of Attitude

32. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -32 Define what the organization is Define what it aspires to be Limited to exclude some ventures Broad enough to allow for growth Distinguishes firm from all others Framework for evaluating activities Stated clearly – understood by all Mission & Customer Orientation – Vern McGinnis

33. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -33 Mission & Customer Orientation An effective mission statement:  Anticipates customer needs  Identifies customer needs  Provides product/service to satisfy needs  Identifies the utility of a firm’s products to its customers

34. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -34 Utility of Firm’s Products to Customers Do not offer me things. Do not offer me clothes. Offer me attractive looks. Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking. Do not offer me a house. Offer me security, comfort, and a place that is clean and happy. Do not offer me books. Offer me hours of pleasure and the benefit of knowledge.

35. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -35 Utility of Firm’s Products to Customers Do not offer me CDs. Offer me leisure and the sound of music. Do not offer me tools. Offer me the benefits and the pleasure that come from making beautiful things. Do not offer me furniture. Offer me comfort and the quietness of a cozy place. Do not offer me things. Offer me ideas, emotions, ambience, feelings, and benefits. Please, do not offer me THINGS.

36. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -36 Mission Components Customers Markets Employees Public Image Self-Concept Philosophy Survival, Growth, Profits Products or Services Technology

37. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -37

38. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -38 Fleetwood Enterprises will lead the recreational vehicle and manufactured housing industries in providing quality products with a passion for customer-driven innovation. We will emphasize training, embrace diversity and provide growth opportunities for our associates and our dealers. We will lead our industry in the application of appropriate technologies. We will operate at the highest levels of ethics and compliance with a focus on exemplary corporate governance. We will deliver value to our shareholders, positive operating results and industry- leading earnings. Mission Statement Examples

39. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -39 We aspire to make PepsiCo the world’s premier consumer products company, focused on convenient foods and beverages. We seek to produce healthy financial rewards for investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity. Mission Statement Examples

40. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -40 Dell’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet consumer 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. Mission Statement Examples

41. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -41 Proctor & Gamble will provide branded products and services of superior quality and value that improve the lives of the world’s consumers. As a result, consumers will reward us with industry leadership in sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper. Mission Statement Examples

42. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -42 At L’Oreal, we believe that lasting business success is built upon ethical standards which guide growth and on a genuine sense of responsibility to our employees, our consumers, our environment and to the communities in which we operate. Mission Statement Examples

43. UMFK Mission Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -43 The University of Maine at Fort Kent emphasizes environmental stewardship, Franco-American culture, and rural sustainability through a liberal and professional education featuring experiential learning which fosters student success as responsible citizens, dedicated professionals, and conscientious leaders. Building upon its historical roots and distinguishing characteristics, the University of Maine at Fort Kent: Was founded as the Madawaska Training School in 1878 to prepare bilingual teachers to serve the French-speaking people of Northern Aroostook County Is a small public institution offering quality baccalaureate and associate degree programs with a legacy of quality teaching Is where education meets the great outdoor environment - situated in historic Fort Kent and nestled in the Saint John River Valley, at the northern extent of the Appalachian Mountains and forests of New England, providing abundant resources for learning and research opportunities, and joys of outdoor sports Serves the educational needs of the St. John Valley, Aroostook County, State of Maine and responds to global trends Prepares well-educated, independent thinkers to live in a diverse and global society Talented and dedicated faculty and staff promote discovery and exploration of knowledge, life-long learning, and global citizenship through effective teaching, service, and scholarship Offers a curriculum that emphasizes special challenges of rural communities in America Fosters an appreciation and stewardship of Northern Maine's pristine natural environment through the Environmental Studies, Forestry, and Biology degree programs Preserves, cultivates, and celebrates the Franco-American/Acadian culture in the St. John Valley and houses one of two Acadian Archives/Archives acadiennes in the nation Is the only institution in the United States located at the center of French culture of northern Maine, northern New Brunswick, and Québec, offering opportunities for students of all ethnic and racial heritages to study and live in a bilingual community Is a strong social, cultural, and economic driving force in the region and promotes rural sustainable development

44. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -44 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.