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Chapter2
TheBusinessVision&MissionStrategicManagement:
Concepts&Cases11thEditionFredDavid
1Copyright2005PrenticeHallChapter2
TheBusinessVisionChapterOutlineWhatdowewanttobecome?Whatisourbusiness?ImportanceofVisionandMissionStatements2Copyright2005PrenticeHallChapterOutlineWhatdowewantChapterOutline(cont’d)CharacteristicsofamissionstatementComponentsofamissionstatementWriting&evaluatingmissionstatements3Copyright2005PrenticeHallChapterOutline(cont’d)CharacVision
Agreementonthebasicvisionforwhichthefirmstrivestoachieveinthelongruniscriticallyimportanttothefirm’ssuccess.4Copyright2005PrenticeHallVision
Agreementonthebasic
“Whatdowewanttobecome?”Vision5Copyright2005PrenticeHall
“Whatdowewanttobecome?”VComprehensive
MissionStatementVisionClearBusiness
Vision6Copyright2005PrenticeHallComprehensive
MissionStatemen
SharedVision--CreatescommonalityofinterestsReducedailymonotonyProvidesopportunity&challengeVision&Mission7Copyright2005PrenticeHall
SharedVision--Vision&Miss
“Whatisourbusiness?”MissionStatements8Copyright2005PrenticeHall
“Whatisourbusiness?”MissioMissionStatementsEnduringstatementofpurposeDistinguishesonefirmfromanotherDeclaresthefirm’sreasonforbeing9Copyright2005PrenticeHallMissionStatementsEnduringstaMissionStatementsCreedstatementStatementofpurposeStatementofphilosophyStatementofbusinessprinciplesAlsoreferredtoas:10Copyright2005PrenticeHallMissionStatementsCreedstatem11Copyright2005PrenticeHall11Copyright2005PrenticeHall
RevealwhatanorganizationwantstobeandwhomitwantstoserveMissionStatements
Essentialforeffectivelyestablishingobjectivesandformulatingstrategies12Copyright2005PrenticeHall
RevealwhatanorganizationwVision&MissionManyorganizationsdevelopbothvision&missionstatements13Copyright2005PrenticeHallVision&MissionManyorganizatVision&MissionProfit&visionarenecessarytoeffectivelymotivateaworkforce14Copyright2005PrenticeHallVision&MissionProfit&visioVision&MissionSharedvisioncreatesacommunityofinterests15Copyright2005PrenticeHallVision&MissionSharedvisionDevelopingVision&MissionClearmissionisneededbeforealternativestrategiescanbeformulatedandimplemented16Copyright2005PrenticeHallDevelopingVision&MissionCleDevelopingVision&MissionParticipationfromdiversemanagersisimportantindevelopingthemission17Copyright2005PrenticeHallDevelopingVision&MissionParImportanceofMissionMissionResourceAllocationUnanimityofPurposeOrganizationalClimateFocalpointforwork
structureBenefitsfromastrongmission18Copyright2005PrenticeHallImportanceofMissionMissionReBroadinscopeGeneratestrategicalternativesNotoverlyspecificReconcilesinterestsamongdiversestakeholdersFinelybalancedbetweenspecificity&generalityEffectiveMissions19Copyright2005PrenticeHallBroadinscopeEffectiveMissioArousepositivefeelings&emotionsMotivatereaderstoactionGeneratefavorableimpressionofthefirmEffectiveMissions20Copyright2005PrenticeHallEffectiveMissions20CopyrightReflectfuturegrowthProvidecriteriaforstrategyselectionBasisforgenerating&evaluatingstrategicoptionsAredynamicinnatureEffectiveMissions21Copyright2005PrenticeHallEffectiveMissions21CopyrightAnticipatescustomerneedsIdentifiescustomerneedsProvidesproduct/servicetosatisfyneedsMission&CustomerOrientationAnEffectiveMissionStatement--22Copyright2005PrenticeHallAnticipatescustomerneedsMissAffectsdevelopmentofvision&mission
Responsibilitiesto–ConsumersEnvironmentalistsMinoritiesCommunitiesSocialPolicy&MissionManagerialphilosophyshapessocialpolicy--23Copyright2005PrenticeHallAffectsdevelopmentofvisionSocialPolicy&MissionSocialpolicyshouldbeintegratedinallstrategic-managementactivitiesMissionshouldconveythesocialresponsibilityofthefirm24Copyright2005PrenticeHallSocialPolicy&MissionSocialMissionStatementsFannieMaeProctor&GambleIntelCorporationSt.PaulCompaniesGreenMtn.CoffeeDeere&Company2005RatedBestinSocialResponsibility
AvonProducts,Inc.Hewlett-PackardCo.AgilentTechnologiesEcolab,Inc.ImationCorpIBM25Copyright2005PrenticeHallMissionStatementsFannieMae202xaveragereturnonshareholder’sequityPositiverelationshiptocompanyperformance30%higherreturnoncertainfinancialmeasuresVision&MissionResearchresultsaremixed,however,firmswithformalmissionstatementsgenerallyseea:26Copyright2005PrenticeHall2xaveragereturnonsharehold
Mission
ElementsCustomersMarketsEmployeesPublicImageSelf-ConceptPhilosophySurvivalGrowthProfitProducts
ServicesTechnology27Copyright2005PrenticeHall
Mission
ElementsCustomersMarPepsiCoMissionPepsiCo’smissionistoincreasethevalueofourshareholders’investment.Wedothisthroughsalesgrowth,costcontrols,andwiseinvestmentresources.Webelieveourcommercialsuccessdependsuponofferingqualityandvaluetoourconsumersandcustomers;providingproductsthataresafe,wholesome,economicallyefficientandenvironmentallysound;andprovidingafairreturntoourinvestorswhileadheringtothehigheststandardsofintegrity.28Copyright2005PrenticeHallPepsiCoMissionPepsiCo’smBen&Jerry’sMissionBen&Jerry’smissionistomake,distributeandsellthefinestqualityall-naturalicecreamandrelatedproductsinawidevarietyofinnovativeflavorsmadefromVermontdairyproducts.TooperatetheCompanyonasoundfinancialbasisofprofitablegrowth,increasingvalueforourshareholders,andcreatingcareeropportunitiesandfinancialrewardsforouremployees.TooperatetheCompanyinawaythatactivelyrecognizesthecentralrolethatbusinessplaysinthestructureofsocietybyinitiatinginnovativewaystoimprovethequalityoflifeofabroadcommunity—local,nationalandinternational.29Copyright2005PrenticeHallBen&Jerry’sMissionBen&MissionStatementEvaluationMatrixCOMPONENTS
OrganizationCustomersProductsServicesMarketsConcernforSurvival,Growth,ProfitabilityTechnology
PepsiCoYesNoNoYesNoBen&Jerry'sNoYesYesYesNo
30Copyright2005PrenticeHallMissionStatementEvaluationMMissionStatementEvaluationMatrixCOMPONENTS
OrganizationPhilosophySelf-ConceptConcernforPublicImageConcernforEmployees
PepsiCoYesNoNoNoBen&Jerry'sNoYesYesYes
31Copyright2005PrenticeHallMissionStatementEvaluationM
KeyTerms&ConceptsForReview(Chapter2)ConcernforEmployeesCustomersConcernforPublicImageMarketsSurvival,Growth,&
ProfitabilityMissionStatement
ComponentsCreedStatementManagerialPhilosophy32Copyright2005PrenticeHall
KeyTerms&ConceptsForRevie
KeyTerms&ConceptsForReview(Chapter2)SelfConceptStakeholdersSocialPolicyVisionStatement33Copyright2005PrenticeHall
KeyTerms&ConceptsForRevieChapter2
TheBusinessVision&MissionStrategicManagement:
Concepts&Cases11thEditionFredDavid
34Copyright2005PrenticeHallChapter2
TheBusinessVisionChapterOutlineWhatdowewanttobecome?Whatisourbusiness?ImportanceofVisionandMissionStatements35Copyright2005PrenticeHallChapterOutlineWhatdowewantChapterOutline(cont’d)CharacteristicsofamissionstatementComponentsofamissionstatementWriting&evaluatingmissionstatements36Copyright2005PrenticeHallChapterOutline(cont’d)CharacVision
Agreementonthebasicvisionforwhichthefirmstrivestoachieveinthelongruniscriticallyimportanttothefirm’ssuccess.37Copyright2005PrenticeHallVision
Agreementonthebasic
“Whatdowewanttobecome?”Vision38Copyright2005PrenticeHall
“Whatdowewanttobecome?”VComprehensive
MissionStatementVisionClearBusiness
Vision39Copyright2005PrenticeHallComprehensive
MissionStatemen
SharedVision--CreatescommonalityofinterestsReducedailymonotonyProvidesopportunity&challengeVision&Mission40Copyright2005PrenticeHall
SharedVision--Vision&Miss
“Whatisourbusiness?”MissionStatements41Copyright2005PrenticeHall
“Whatisourbusiness?”MissioMissionStatementsEnduringstatementofpurposeDistinguishesonefirmfromanotherDeclaresthefirm’sreasonforbeing42Copyright2005PrenticeHallMissionStatementsEnduringstaMissionStatementsCreedstatementStatementofpurposeStatementofphilosophyStatementofbusinessprinciplesAlsoreferredtoas:43Copyright2005PrenticeHallMissionStatementsCreedstatem44Copyright2005PrenticeHall11Copyright2005PrenticeHall
RevealwhatanorganizationwantstobeandwhomitwantstoserveMissionStatements
Essentialforeffectivelyestablishingobjectivesandformulatingstrategies45Copyright2005PrenticeHall
RevealwhatanorganizationwVision&MissionManyorganizationsdevelopbothvision&missionstatements46Copyright2005PrenticeHallVision&MissionManyorganizatVision&MissionProfit&visionarenecessarytoeffectivelymotivateaworkforce47Copyright2005PrenticeHallVision&MissionProfit&visioVision&MissionSharedvisioncreatesacommunityofinterests48Copyright2005PrenticeHallVision&MissionSharedvisionDevelopingVision&MissionClearmissionisneededbeforealternativestrategiescanbeformulatedandimplemented49Copyright2005PrenticeHallDevelopingVision&MissionCleDevelopingVision&MissionParticipationfromdiversemanagersisimportantindevelopingthemission50Copyright2005PrenticeHallDevelopingVision&MissionParImportanceofMissionMissionResourceAllocationUnanimityofPurposeOrganizationalClimateFocalpointforwork
structureBenefitsfromastrongmission51Copyright2005PrenticeHallImportanceofMissionMissionReBroadinscopeGeneratestrategicalternativesNotoverlyspecificReconcilesinterestsamongdiversestakeholdersFinelybalancedbetweenspecificity&generalityEffectiveMissions52Copyright2005PrenticeHallBroadinscopeEffectiveMissioArousepositivefeelings&emotionsMotivatereaderstoactionGeneratefavorableimpressionofthefirmEffectiveMissions53Copyright2005PrenticeHallEffectiveMissions20CopyrightReflectfuturegrowthProvidecriteriaforstrategyselectionBasisforgenerating&evaluatingstrategicoptionsAredynamicinnatureEffectiveMissions54Copyright2005PrenticeHallEffectiveMissions21CopyrightAnticipatescustomerneedsIdentifiescustomerneedsProvidesproduct/servicetosatisfyneedsMission&CustomerOrientationAnEffectiveMissionStatement--55Copyright2005PrenticeHallAnticipatescustomerneedsMissAffectsdevelopmentofvision&mission
Responsibilitiesto–ConsumersEnvironmentalistsMinoritiesCommunitiesSocialPolicy&MissionManagerialphilosophyshapessocialpolicy--56Copyright2005PrenticeHallAffectsdevelopmentofvisionSocialPolicy&MissionSocialpolicyshouldbeintegratedinallstrategic-managementactivitiesMissionshouldconveythesocialresponsibilityofthefirm57Copyright2005PrenticeHallSocialPolicy&MissionSocialMissionStatementsFannieMaeProctor&GambleIntelCorporationSt.PaulCompaniesGreenMtn.CoffeeDeere&Company2005RatedBestinSocialResponsibility
AvonProducts,Inc.Hewlett-PackardCo.AgilentTechnologiesEcolab,Inc.ImationCorpIBM58Copyright2005PrenticeHallMissionStatementsFannieMae202xaveragereturnonshareholder’sequityPositiverelationshiptocompanyperformance30%higherreturnoncertainfinancialmeasuresVision&MissionResearchresultsaremixed,however,firmswithformalmissionstatementsgenerallyseea:59Copyright2005PrenticeHall2xaveragereturnonsharehold
Mission
ElementsCustomersMarketsEmployeesPublicImageSelf-ConceptPhilosophySurvivalGrowthProfitProducts
ServicesTechnology60Copyright2005PrenticeHall
Mission
ElementsCustomersMarPepsiCoMissionPepsiCo’smissionistoincreasethevalueofourshareholders’investment.Wedothisthroughsalesgrowth,costcontrols,andwiseinvestmentresources.Webelieveourcommercialsuccessdependsuponofferingqualityandvaluetoourconsumersandcustomers;providingproductsthataresafe,wholesome,economicallyefficientandenvironmentallysound;andprovidingafairreturntoourinvestorswhileadheringtothehigheststandardsofintegrity.61Copyright2005PrenticeHallPepsiCoMissionPepsiCo’smBen&Jerry’sMissionBen&Jerry’smissionistomake,distributeandsellthefinestqualityall-naturalicecreamandrelatedproductsinawidevarietyofinnovativeflavorsmadefromVermontdairyproducts.TooperatetheCompanyonasoundfinanci
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