copyright 2005 prentice hall1 bus 411 day 3. copyright 2005 prentice hall ch 2 -2 agenda assignment...

Copyright 2005 Prentice Hall 1

BUS 411

Day 3

Copyright 2005 Prentice Hall Ch 2 -2

Agenda

Assignment # 1 due next class Discussion of Krispy Kreme Cohesion Case Discussion on Business Mission and Vision


Krispy Kreme

Key issues Finances (page 36-38)

Income Statement Segmented revenues and expenses Balance Sheet

Market place Strategic planning

Mission & vision ?? SWOT What should they do.

Resources http://www.krispykreme.com/ http://www.umfk.maine.edu/infoserv/library/


Strengths

1. Strong brand recognition and recall2. Brand equity 3. Wide appeal of signature glazed doughnuts4. Vertical integration5. Development in international markets6. Strong channel of distribution7. Quality of product8. Expanded assortment of offerings at KKD stores

including beverages9. Doughnut machine technology


Weaknesses

1. Perishability of product

2. Limited product line (heavy reliance on doughnut sales)

3. Overextended (i.e., Montana Mills acquisition)

4. Lack of locations in some areas

5. Pricing in some locations


Opportunities

1. Increasing popularity of coffee shops and bakery cafés2. Popularity of American foods and fashion in overseas markets3. Growth in two-income households4. Americans continue to experience time-starvation5. Entertaining opportunities moving from home to work

environment6. Technological advancements (i.e., paperless ordering,

predictive modeling software, hand held computers for delivery drivers)

7. Channel expansion possibilities (i.e., Internet pre-ordering)


Threats

1. Dunkin Donuts and Starbucks2. Low-carb trend in eating preferences3. All-natural, organic, healthy eating trends4. Cultural differences in breakfast and snack foods5. Consumption of doughnuts in mornings rather than

as an all day snack or meal6. Requirements for increased accessibility of

nutritional information 7. Increase in eating at full-service restaurants

combined with a decrease in the use of fast-food restaurants


Chapter 2The Business Vision & Mission

Strategic Management: Concepts & Cases

10th EditionFred David

PowerPoint Slides by

Anthony F. Chelte

Western New England College


Chapter Outline

What do we want to become?

What is our business?

Importance of Vision and Mission Statements


Chapter Outline (cont’d)

Characteristics of a mission statement

Components of a mission statement

Writing & evaluating mission statements


“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


Vision

Agreement on the basic vision for which the firm strives to achieve in the long run is critically important to the firm’s success.


“What do we want to become?”

Vision


ComprehensiveMission Statement

Vision

Clear Business Vision


Shared Vision -- Creates commonality of interests Reduce daily monotony Provides opportunity & challenge

Resource http://www.csuchico.edu/mgmt/strategy/module1/sld007.htm

Vision & Mission


A national organization which represents its members in all aspects of poultry and eggs on both a national and international level.

Vision Statement Examples

-- U.S. Poultry & Egg Association


The Vision of Manley Baptist Church is to be the people of God, on mission with God, motivated by a love for God, and a love for others.


-- Manley Baptist Church


The Vision of USGS is to be a world leader in the natural sciences through our scientific excellence and responsiveness to society’s needs.


-- U.S. Geological Survey (USGS)


To be the first choice in the printed communications business. The first choice is the best choice, and being the best is what Atlanta Web pledges to work hard at being—every day!


-- Atlanta Web Printers, Inc.


Vision Statement Examples The University of Maine at Fort Kent is a quality small public institution, with a

curriculum tightly focused on undergraduate education in the traditions of the liberal arts and sciences. The university will select academic and professional programs of the highest quality, which respond to the needs of northern Maine and which build upon the region's unique culture and rural environment. The university will be recognized nationally and regionally as the education and outreach partner of choice. We Are Committed to:

A legacy of preparing quality teachers High quality affordable and accessible education Programs which foster a sense of community Technically advanced academic and distance learning environments Development of distinct rural-based identity and curriculum Expanded rural research and development activities Study and interaction with Maine's wilderness environments Development of graduate program initiatives Expanded outreach activities A fully developed student life program that supports educational development Student preparation to meet the changing need of society Active community membership and cultural enrichment

The University of Maine at Fort Kent seeks to become the best small university within the University of Maine System and beyond.

UMFK


Vision statement examples

The mission and vision of Rainbow Cove, LLC is to develop the properties owned on big Madawaska Lake, Maine into several profitable business ventures that satisfy the following four requirements; Benefit the economic condition of Northern Maine Preserve the unique Swedish cultural heritage of the Big

Madawaska Lake region Foster an appreciation for the natural beauty of Northern

Maine Promote environmentally sound, four-season outdoor

recreational activities

Copyright 2005 Prentice Hall 22

BUS 411

Day 4


Agenda

Assignment # 1 due Finish Discussion on Business Mission and

Vision


-- 90% of all companies have used a mission statement in the previous five years.

Mission Statements


“What is our business?”

Mission Statement


Mission Statements

•Enduring statement of purpose

•Distinguishes one firm from another

•Declares the firm’s reason for being


Mission Statements

•Creed statement

•Statement of purpose

•Statement of philosophy

•Statement of business principles

Also referred to as:


Reveal what an organization wants to be and whom it wants to serve

Mission Statements


Essential for effectively establishing objectives and formulating strategies.

Mission Statements


Vision & Mission

Many organizations develop both vision & mission statements.


Vision & Mission

Profit & vision are necessary to effectively motivate a workforce


Vision & Mission

Shared vision creates a community of interests


Developing Vision & Mission

Clear mission is needed before alternative strategies can be formulated and implemented


Developing Vision & Mission

Participation from diverse managers is important in developing the mission.


It is the California Energy Commission’s mission to assess, advocate, and act to through public/private partnerships to improve energy systems that promote a strong economy and healthy environment

Mission Statement Examples

-- California Energy Commission


The Bellevue Hospital, with respect, compassion, integrity, and courage, honors the individuality and confidentiality of our patients, employees, and community, and is progressive in anticipating and providing future health care services.


-- The Bellevue Hospital


John Deere has grown and prospered through a long-standing partnership with the world’s most productive farmers. Today, John Deere is a global company with several equipment operations and complementary service businesses. These businesses are closely interrelated, providing the company with significant growth opportunities and other synergistic benefits.


-- John Deere, Inc.


Importance of Mission

MissionResource Allocation

Unanimity of Purpose

Organizational Climate

Focal point for work structure

Benefits from a strong mission


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

Effective Missions


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

Effective Missions


Reflect future growth

Provide criteria for strategy selection

Basis for generating & evaluating strategic options

Are dynamic in nature

Reflect future growth

Provide criteria for strategy selection

Basis for generating & evaluating strategic options

Are dynamic in nature

Effective Missions


Define what the organization is Define what it aspires to be Limited to exclude some ventures

Mission & Customer Orientation – Vern McGinnis

Broad enough to allow for growth Distinguishes firm from all others Stated clearly – understood by all


Anticipates customer needs Identifies customer needs Provides product/service to satisfy needs

Mission & Customer Orientation

An Effective Mission Statement --


Mission & Customer Orientation Customer manifesto (page 60)

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 Do not offer me things, Offer me ideas, emotions,

ambience, feelings, and benefits. Please, do not offer me things


Affects development of vision & mission

Responsibilities to – Consumers Environmentalists Minorities Communities

Social Policy & Mission

Managerial philosophy shapes social policy --


Social Policy & Mission

Social policy should be integrated in all strategic-management activities.

Mission should convey the social responsibility of the firm


Mission Statements

1. Alexander & Baldwin

2. Johnson & Johnson

3. American Express

4. Altria Group

5. United Parcel Service

2003 Rated Best in Social Responsibility(Wall Street Journal)

6. BP America

7. Procter & Gamble

8. Administaff

9. Medtronic

10.Merck


2x average return on shareholder’s equity Positive relationship to company performance 30% higher return on certain financial measures

Vision & Mission

Research results are mixed, however, firms with formal mission statements --


Mission Elements

CustomersMarkets

Employees

PublicImage

Self-Concept Philosophy

SurvivalGrowthProfit

ProductsServices

Technology


Components and Questions That a Mission Statement Should Answer1. Customers: Who are the firm’s customers?2. Products or services: What are the firm’s major products?3. Markets: Geographically, where does the firm compete?4. Technology: Is the firm technologically current?5. Concern for survival, growth, and profitability: Is the firm

committed to growth and financial soundness?6. Philosophy: What are the basic beliefs, values, aspirations, and

ethical priorities of the firm?7. Self-concept: What is the firm’s distinctive competence or

major competitive advantage?8. Concern for public image: Is the firm responsive to social,

community, and environmental concerns?9. Concern for employees: Are employees a valuable asset of the

firm?


PepsiCo Mission

PepsiCo’s mission is to increase the value of our shareholders’ investment. We do this through sales growth, cost controls, and wise investment resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.


Ben & Jerry’s MissionBen & Jerry’s mission is to make, distribute and sell

the finest quality all-natural ice cream and related products in a wide variety of innovative flavors made from Vermont dairy products. To operate the Company on a sound financial basis of profitable growth, increasing value for our shareholders, and creating career opportunities and financial rewards for our employees. To operate the Company in a way that actively recognizes the central role that business plays in the structure of society by initiating innovative ways to improve the quality of life of a broad community—local, national and international.


Mission Statement Evaluation Matrix

COMPONENTS

Organization CustomersProducts Services Markets

Concern for Survival, Growth,

Profitability Technology

PepsiCo Yes No No Yes No

Ben & Jerry's No Yes Yes Yes No


Mission Statement Evaluation Matrix

COMPONENTS

Organization PhilosophySelf-

ConceptConcern for Public Image

Concern for Employees

PepsiCo Yes No No No

Ben & Jerry's No Yes Yes Yes


Group Work

Two groups Page 69 Experiential Exercise 2A

A business mission statement is an integral part of strategic management. It provides direction for formulating, implementing, and evaluating strategic activities. This exercise will give you practice evaluating mission statements, a skill that is a prerequisite to writing a good mission statement.

Evaluate (15 min) Criterion Productions, Inc. Mid-America Plastics Hatboro Area YMCA UMFK

On next slide Rainbow Cove, LLC

On next slide


Mission Statement Examples UMFK

The University of Maine at Fort Kent is a liberal arts based university offering quality baccalaureate and associate degree programs responding to the needs of northern Maine. The UMFK academic experience provides close interaction with faculty, small classes and the use of leading technology to prepare students for lifelong learning and success as professionals and engaged citizens of a democracy.

Our curriculum emphasizes the special challenges of rural communities in America. The university preserves and fosters an appreciation of the Acadian and Franco-American heritage and culture while welcoming students of all ethnic and racial heritages. We celebrate our proximity to the wonder of Maine's wilderness and the joys of outdoor sports. UMFK contributes to the economic, social and cultural development of the St. John Valley and we believe that a diverse student body enriches the learning experience of all. In addition, the University of Maine at Fort Kent joins the University of Maine at Machias and the University of Maine at Presque Isle working in a consortium with the goal of maximizing efficiencies of operation while enhancing educational quality and opportunity for all those served by the three campus communities.

Rainbow Cove, LLC The mission and vision of Rainbow Cove, LLC is to develop the properties owned on

Big Madawaska Lake, Maine into several profitable business ventures that satisfy the following four requirements; Benefit the economic condition of Northern Maine Preserve the unique Swedish cultural heritage of the Big Madawaska Lake region Foster an appreciation for the natural beauty of Northern Maine Promote environmentally sound, four-season outdoor recreational activities


Evaluation

Components 1 2 3 4 5 6 7 8 9

Criterion Productions Yes Yes No No No Yes Yes No No

Mid-America Plastics No No No No No Yes No No Yes

Hatboro YMCA Yes Yes Yes No No Yes Yes Yes No

UMFK Yes Yes Yes No No No Yes Yes No

Rainbow Cove LLC


Group Work

There is no one best vision or mission statement for a given organization. Analysts feel that KKD needs a clear vision and mission statement to prosper. Writing a mission statement that includes desired components—and at the same time is inspiring and reconciliatory—requires careful thought. Mission statements should not be too lengthy; statements under 200 words are desirable.

INSTRUCTIONS: Take 15 minutes to write a vision and mission statement for KKD.

Scan the case for needed details as you prepare your statements.

Join with three other classmates to form a group of four people. Read each other’s statements silently. As a group, select the best vision statement and the best mission statement from your group.

Read those “best” statements to the class.


Mission and Vision for KKD

KKD Vision Statement: KKD strives to be the leading choice of consumers for

specialty baked goods and beverages. KKD Mission Statement:

Krispy Kreme seeks to maintain its loyal customer base and attract new customers in both current and developing markets with its commitment to quality and consistency in its doughnuts, other baked goods, and beverages (1, 2, 3, 8). Krispy Kreme will lead the industry via a commitment to innovation, service, growth, and quality (4, 5). Its channel system and franchise system ensure profitability for retailers and franchisees while providing convenient access for customers. Krispy Kreme desires to instill the belief that the company is a set of capabilities, not just a product or brand (6, 7, 8, 9).

copyright 2005 prentice hall1 bus 411 day 3. copyright 2005 prentice hall ch 2 -2 agenda assignment...

Documents

prentice hall ch

vision slide

ibm corporation slide

business mission

prentice hall1 bus

vision agreement

basic vision

importance of vision