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FEU MAKATI MBA PROGRAM

CRAFTING THE MISSION, CORE VALUES AND STRATEGY


Presented by
MARIA CHRISTINA MORADA EDGAR CABRERA

STRATEGIC MANAGEMENT 1 18 June 2012

OUTLINE
1 2 3 4 5

Strategic Vision vs. Mission Setting Objectives

Crafting a Strategy
Implementing and Executing Strategy Evaluating Performance and Making Corrective Adjustments

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The Strategy-Making, Strategy-Executing Process


Phase 1 Phase 2 Phase 3

Phase 4

Phase 5

Developin ga Strategic Vision

Setting Objectives

Crafting a Strategy to achieve the objectives and vision

Implementi ng and executing the strategy

Monitoring developments, evaluating performance, and making corrective adjustments

Revise as needed in light of actual performance, changing conditions, new opportunities, and new ideas
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Strategic Vision vs. Mission


* A strategic vision
concerns a firms future business path - where we are going

* The mission statement of


most companies focuses on current business activities - who we are and what we do

* Markets to be pursued * Future technology* Kind of company


management is trying to create

* Current product and


* *

product-customer focus

service offerings Customer needs being served Technological and business capabilities

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Characteristics of a Mission Statement


Defines current business activities, highlighting
boundaries of current business Present products and services Types of customers served Approach to pleasing customers Conveys Who we are, What we do, and Why we are here A companys mission is not to make a profit! Its true mission is its answer to What will we do to make a profit? Making is profit is an objective or intended outcome!
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Key Elements of a Mission Statement

Technologies/ resources/busines s approaches used and activities performed How customers needs are satisfied?

Customer Needs What is being satisfied? Mission Statement

Customer groups Who are being satisfied?


Source: Cross (1994)
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Vision:
We are the best tasting
QSR.. The most endearing brand that has ever been We will lead in product taste at all times We will provide FSC excellence in every encounter Happiness in every moment By year 2020, with over 4,000 stores worldwide, Jollibee is truly a GLOBAL BRAND. (and the Filipino will be admired worldwide)
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Mision:
To serve great tasting
food, bringing the joy of eating to everyone.

Vision:
We envision a society
where the poor, vulnerable and disadvantaged are empowered for an improved quality of life. Towards this end, DSWD will be the world's standard for the delivery of coordinated social services and social protection for poverty reduction by 2030.
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Mision:
To develop, implement
and coordinate social protection and poverty reduction solutions for and with the poor, vulnerable and disadvantaged.

Vision:
Enriching peoples lives

Mision:
Nissan provides unique and innovative automotive product and services that deliver superior measurable values to all stakeholders in alliance with Renault.

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Linking the Vision With Company Values

*A statement of values is often provided to guide the


companys pursuit of its vision

*Values Beliefs, business principles, and ways of doing


things that are incorporated into *Companys operations *Behavior of workforce

*Values statements *Contain between four and eight values *Are ideally tightly connected to and reinforce
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companys vision, strategy, and operating practices

Values

Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well

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Values

Passion for Success Teamwork Respect for Our People Customer Focus Innovativeness Integrity Social Responsibility

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Setting Objectives
Phase 2 of the Strategy-Making Process

*Purpose: *Converts vision into specific performance targets *Creates yardsticks to track performance *Pushes firm to be inventive, intentional, and
focused in its actions

*Setting challenging, achievable


objectives guards against

*Complacency *Internal confusion *Status quo performance


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Characteristics of Objectives
*Represent commitment to achieve specific performance
targets

*Spell out how much of what kind


of performance by when

*Well-stated objectives are *Quantifiable *Measurable *Contain a deadline for achievement


Establishing objectives converts the vision into concrete performance outcomes!
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Types of Objectives
Financial Objectives
Outcomes focused on improving financial performance

Strategic Objectives
Outcomes focused on improving long-term competitive business position

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* Financial Objectives:
* An x percent increase in
annual revenues

* Strategic Objectives:
* Winning an x percent
market share

* Annual increases in aftertax profits of x per cent

* Overtaking key
competitors on product performance or quality or customer service

* Internal cash flows of x to


fund new capital investments

* Achieving customer
satisfaction rates of x percent

* An x percent return on
equity (ROE)
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Objectives Are Needed At All Levels

Next, set business and product line objectives Then, establish functional and departmental objectives

Individual objectives are established last

First, establish organization-wide objectives and performance targets


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Crafting a Strategy
Phase 3 of the Strategy-Making Process

*Strategy-making involves entrepreneurship


searching for opportunities

*To do new things or *To do existing things in new or better ways *Strategizing involves *Picking up on happenings in the external
environment and

*Steering company activities in new directions


dictated by shifting market conditions
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Strategizing: An Individual or Team Responsibility?


*Teams are increasingly used because *Finding market- and customer-driven solutions is
necessary

*Complex strategic issues cut across

functional areas and departmental units backgrounds and experiences strengthen strategizing effort

*Ideas of people with different *Groups charged with crafting the


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strategy often include the people charged with implementing it

Strategy Making for a Diversified Company


Corporate-Level Managers Corporate Strategy
Two-Way Influence

Business-Level Managers Functional Managers

Business Strategies
Two-Way Influence

Functional Strategies
Two-Way Influence

Operating Managers

Operating Strategies

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Fig. 2.2: A Companys Strategy-Making Hierarchy

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Strategy Making in a Single Business Company


Business-Level Managers
Business Strategy
Two-Way Influence

Functional Managers

Functional Strategies
Two-Way Influence

Operating Managers

Operating Strategies

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Task of Corporate Strategies


*Moves to achieve diversification *Actions to boost performance of individual businesses

*Capturing valuable cross-business synergies to provide


1 + 1 = 3 effects!

*Establishing investment

priorities and steering corporate resources into the most attractive businesses

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Task of Business Strategies


*Initiating approaches to produce successful
performance in a specific business

*Crafting competitive moves to build

sustainable competitive advantage competencies and capabilities

*Developing competitively valuable


*Uniting strategic activities of functional areas *Gaining approval of business strategies by corporatelevel officers and directors

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Task of Functional Strategies


*Game plan for a strategically-relevant
function, activity, or business process

*Detail how key activities


will be managed

*Provide support for


business strategy

*Specify how functional objectives


are to be achieved

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Task of Operating Strategies


*Concern narrower strategies for
managing grassroots activities and strategically-relevant operating units

*Add detail to business

and functional strategies

*Delegation of responsibility
to frontline managers

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What is a Strategic Plan?


Strategic Vision and Business Mission

Strategic Plan

Strategic and Financial Objectives

Strategy

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Implementing and Executing Strategy


Phase 4 of the Strategy-Making Process

*Action-oriented, operations-driven activity aimed at


shaping performance of core business activities in a strategy-supportive manner
than crafting strategy

*Tougher and more time-consuming *Key tasks include *Improving efficiency of the strategy being executed *Showing measurable progress in achieving targeted
results
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*Building a capable organization *Allocating resources to strategy-critical activities *Establishing strategy-supportive policies *Instituting best practices and programs for

What Does Strategy Implementation Involve?

continuous improvement *Installing information, communication, and operating systems *Motivating people to pursue the target objectives *Tying rewards to achievement of results *Creating a strategy-supportive corporate culture *Exerting the leadership necessary to drive the process forward and keep improving
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*Involves creating strong fits between strategy and *Organizational capabilities *Reward structure *Internal operating systems *Organizations work climate and culture *The stronger the fits the *Better the execution *Higher a companys odds of achieving its performance
targets
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Characteristics of Good Strategy Execution

Evaluating Performance and Making Corrective Adjustments


Phase 5 of the Strategy-Making Process

*Tasks of crafting and implementing the strategy are not a


one-time exercise *Customer needs and competitive conditions change *New opportunities appear; technology advances; any number of other outside developments occur *One or more aspects of executing the strategy may not be going well *New managers with different ideas take over *Organizational learning occurs *All these trigger the need for corrective actions and adjustments on an as-needed basis
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Corporate Governance
*Exercise strong oversight to ensure the five tasks of
strategic management are executed to benefit

*Shareholders or *Stakeholders *Make sure executive actions are not only proper but also
aligned with interests of stakeholders

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END OF PRESENTATION

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