Vision and Mission Statement

1. Vision and Mission Statement Dosen : Drs. HA. ROMADLON, MM, CTP

2. Vision Statement Clear vision provide the foundation for developing a comprehensive mission statement Vision Statement Examples : General Motor : “to be the world leader in transportation product and related services” TELKOM : “to become a leading INFOCOM player in the region” Vision statement should answer the basic question “What do we want to become ?” It should be : short, preferably one sentence, as many managers as possible should have input into developing the statement.

3. Mission Statement Peter Drucker says that asking the question “What is our business ?” is synonymous with asking the question “What is our mission ?” A clear mission statement is essential for effectively establishing objective and formulating strategies. Sometimes called a creed statement, a statement of : purpose, philosophy, belief, business principle, defining our business, Mission statement is declaration of an organization’s reason for being

4. “Notable Quotes” A corporate vision can focus, direct, motivate, unify, and even excite a business into superior performance. The job of strategist is to identify and project a clear vision (John Keane) A business is not defined by its name, statutes, or articles of incorporation. It is defined by the business mission. Only a clear definition of the mission and purpose of the organization makes possible clear and realistic business objectives (Peter Drucker)

5. Mission Statement Components • Customers ; who are the firm’s customer ? • Product or service; what are the firm’s major product or service ? • Markets; geographically where does the firm compete ? • Technology; Is the firm’s technologically current ? • Concern for survival, growth and profitability; Is the firm committed to growth and financial soundness ? • Philosophy; What are the basic belief, values, aspiration, and ethical priorities of the firm ? • Self-concept; What is the firm’s distinctive competence or major competitive advantage ? • Concern of public image; Is the firm responsive to social, community and environmental concern ? • Concern for employee; Are employee a valuable asset of the firm?

6. Mission Statement Examples Dell Inc. is to be the most successful computer company (2) in the world (3) at delivering the best customer experience in markets we serve (1). In doing so, Dell will meet customer expectation of highest quality, leading technology (4); competitive pricing; individual and company accountability (6); best-in-class service and support (7); flexible customization capability (7); superior corporate citizenship (8); financial stability (5).

7. Formulating Mission Base on Fundamental Beliefs : The product and service can provides benefits at least equal to its price The product and service can satisfy customers The technologies will provide a cost – quality competitive price With hard work the business can grow and be profitable The management philosophy will result in favorable public image The entrepreneur’ self concept can be communicated to and adopted by employees and stockholders Newest Trends in Mission Components : Customers and Quality

8. Inputs to the Development of Mission Inside Stakeholders Outside Stakeholders • Executive Officer • BOD • Stockholders • Employees • Customers • Suppliers • Creditors • Governments • Unions • Competitors • General Public Company’s Mission

9. Characteristics of a Mission Statement Declaration of Attitude, A customer orientation, Declaration of social policy • Broad in scope • Less than 250 words in length • Inspiring • Identify the utility of firm’s products • Reveal that the firm is socially responsible • Reveal that the firm is environmentally responsible • Include nine components ( customer ….. employee) • Enduring

10. The Need for an Explicit Mission (Importance of Vision and Mission Statement) • Ensure unanimity of purpose the organization • Provide Basis motivating • Develop basis, or standard • Establish general tone or organization climate • To serve focal point to identify purpose and direction • Translate objective and goals to work structure • Translate purpose & goals in such a way cost, time and performance parameter can be assessed.

11. Corporate Social Responsibility The idea that business has a duty to serve society as well as the financial interest of stockholders. Three principal reasons company should be concern about the CSR : Company’s right to exist depend on its responsiveness to the external environment. Government threaten increased regulation if business doesn’t evolve to meet changing social standard. A responsive corporate social policy may enhance a firm’s long-term viability.

12. CSR’s effect on the Mission • The mission statement not only identify what product and service a company produce it, and what market it serves, it also embodies what the company believes. • Mission statement recognize the legitimate claims of external stakeholders include creditors, customers, suppliers, government, unions, local community and element of the general public. • Some company are in their approach to CSR, others are reactive. • Social audit attempts to measure a company’s actual social performance against the social objective.

13. External Environment Analysis (External Factor Assessment) Dosen : Drs. HA. ROMADLON, MM, CTP

14. External Environment Analysis Sometimes is called Environmental Scanning, External Audit, or Industry Analysis, reveal key opportunity and threats confronting an organization so that managers can formulate strategies to take advantage and avoids or reduce the impact of threats.

15. Company’s Environment • Remote / Macro Env’ • Economic • Social • Political • Technological • Ecological • Operating Env • Competitor • Creditor • Customers • Labor • Supplier • Industry Env’ • Global & Domestic • Entry Barriers • Supplier Power • Substitute • Competitive Rivalry The FIRM

16. Notable Quotes The opportunities and threats existing in any situation always exceed the resources needed to exploit the opportunities or avoid the threats. Thus, strategy is essentially a problem of allocating resources. If strategy is to be successful, it must allocate superior resource against a decisive opportunity. (William Cohen) If you are not faster then your competitor, you are in a tenuous position, and if you are only half as fast, you are terminal. (George Salk)

17. Thinking Strategically Thinking strategically about a Company’s Industry and Competitive Environment is using tools to get clear answer to seven question : What are the industry’s strategy-shaping economic features ? What kind of competitive forces are industry members facing, and how strong is each force ? What forces are driving change in the industry, and what impact will these changes have on competitive intensity and industry profitability ? What market position do industry rivals occupy-who is strongly positioned and who is not ? What strategic moves are rivals likely to make next ? What are the key factors for future competitive success ? Does the outlook for the industry present the company with sufficiently attractive prospect for profitability ?

18. Economic Forces Key Economic Variable to be Monitored • Availability of credit • Level of disposable income • Interest rate • Inflation rate • Money market rate • Government budget • GDP trend • Consumption [pattern • Unemployment trend • Worker productivity level • Value of the dollar in world market • Stock market trend • Foreign country economic condition • Import / export factors • Demand shift for different categories of goods and services • Income different by region and consumer groups • Price fluctuation • Export of labor and capital • Monetary policies • Fiscal policies • Tax rates • European Economic Community policies • etc

19. Economic Forces (con’t) Advantage and Disadvantage of a Weak Dollar for US Firms Advantage Disadvantage • Lead to more export • Lead to lower import • Make US goods cheaper to foreign country • Stimulate worldwide recession • Forces foreign firms to raise price • Reduce the US trade deficit • Encourages firms to globalize • Encourages foreigner to visit the United States • Can lead to inflation • Can cause raise in oil prices • Can weaken US government • Make it unattractive for Americans to travel globally • Can contribute to fall in stock prices in long run

20. Key Social, Cultural, Demographic, and Environmental Variables. • Childbearing rates • Number of special interest group • Number of marriage • Number of divorces • Number of birth • Number of death • Immigration and Emigration rates • Social security program • Life expectancy rates • Per capita income • Location of retailing, manufacturing, and service business. • Attitude toward business • Lifestyle • Traffic Congestion • Inner-city environment • Average disposable income • Trust in government • Attitude toward government • Attitude toward work • etc

21. Political, Government, and Legal Variables • Government regulation or deregulation • Change in tax law • Special tariffs • Political action committee • Voter participation rates • Number, severity and location of government protests • Number of patent • Change in patent law • Environmental protection law • Level of defense expenditure • Legislation on equal employment • Level of government subsidies • Antitrust legislation

22. Technological Forces Give the example of the impact of Wireless Technology in certain industry (five industries)

23. Tugas-2 Lakukanidentifikasivisidariperusahaan yang menjadi tugas kelompok anda, apakahvisiperusahaantersebuttelahmemenuhipersyaratanataukuslifikasidari Vision Statement. Lakukanidentifikasimisidariperusahaantersebut, lakukanidentifikasiapakahtelahmemenuhi 9 komponen mission statement ? Identifikasisatu per satu. Lakukan audit faktor2 Eksternal apa saja yang berpengaruh terhadap perusahaan tersebut jelaskan satu per satu. Pelaajari buku wajib chapter 3 The External Assessment lanjutan untuk didiskusikan pada pertemuan minggu depan.