Week 3: Organizational Philosophy i: Mission, Vision & Corporate Values Flashcards
(21 cards)
What is a mission statement?
A broadly defined, enduring statement of purpose that distinguishes the organization from others of its type.
Ackoff, 1987
What is strategic intent?
need something that encourages people to win, competitive focus, something sustainable over time, future look
Hamel & Prahalad, 1989
What is the role of vision in an organization?
To generate a real picture of the future and understand trends and insights from the past. Must have a world view that is broad rather than just looking at your company.
Campbell Tawadey, 1990
What is the complexity of strategic direction?
The difficulty of changing the direction of multinational enterprises (MNEs) is like turning an oil tanker
What is strategic position?
Where an organization is in relation to its competitors.
Bates & Dillard, 1991
What do values in an organization lead to?
Leads into ethics and creates a psychological link for motivation.
Why are specific goals important in a mission?
They translate ideas into actionable objectives and motivate when they are just outside of reach.
What is Fonterra’s organizational mission example?
Our co-operative’s strategy is to enhance people’s lives through convenience, health and wellbeing by unlocking the goodness of NZ milk.
List Fonterra’s 5 strategic aims.
- Prioritise the farmgate milk price
- Target a 30% emissions reduction at manufacturing sites; stop using coal by 2037; reduce water use
- Grow food service channel
- Strengthen Consumer channel
- Move towards higher value products in ingredients
What is marketing myopia?
Short sightedness in marketing that overlooks customer needs during mission and value formulation.
What is technological myopia?
Ignoring the limitations of resources, technology, and skills while overemphasizing marketing.
What does costing myopia refer to?
Losing sight of the costs associated with achieving objectives and ensuring value/revenue balance.
Why is defining business domain important?
It determines the extent of services and products offered based on customer needs. (railway product is transportation market)
What is a product-based definition?
A definition focused solely on products, risking marketing myopia.
What is a market-based definition?
A definition that focuses on customer needs rather than just the products offered.
What are the fundamental goals of an organization’s philosophy, values, and ethics?
- Enduring purpose of the organization
- Important embedded beliefs (work values)
- Ethics of ‘right’ and ‘wrong’ for the organization
What questions relate to business domain?
- What business(es) are/should we be in?
- What customer needs do/should we fulfill?
- What are our product benefits?
- What technologies do we apply?
What questions relate to competitive advantage?
- Skills needed to survive and prosper
- Distinctive competencies
- Special qualities distinguishing from competitors
What are energizing factors for stakeholders?
- how can you motivate stakeholders
Verbs, adverbs, and adjectives that create excitement without being clichéd or unbelievable.
What is Manchester Uniteds mission statement
To be the best football club in the world both on and off the pitch.
What are the 4 elements of mission
Organizational philosophy, values, & ethics; Business Domain; Competitive Advantage; Energizing factor
