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TOPIC AREAS COVERED IN A CORPORATE MISSION STATEMENT

TOPIC AREAS COVERED IN A CORPORATE MISSION STATEMENT. 1. Products or services provided 2. Customer needs to be met 3. Technology to be used 4. Survival, growth and profitability 5. Management’s philosophy 6. The firm’s “Self Concept” 7. Public image and social responsibility.

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TOPIC AREAS COVERED IN A CORPORATE MISSION STATEMENT

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  1. TOPIC AREAS COVERED IN A CORPORATE MISSION STATEMENT 1. Products or services provided 2. Customer needs to be met 3. Technology to be used 4. Survival, growth and profitability 5. Management’s philosophy 6. The firm’s “Self Concept” 7. Public image and social responsibility

  2. FUNCTIONS OF A CORPORATE MISSION STATEMENT • Ensure unanimity of purpose. • Motivating the use of the organization’s resources • As a basis for allocating organizational resources • Setting a general tone or climate • As a focal point for the organization’s identity • Aids in translating goals and objectives into a working • strategy • Specifies organizational purposes so they can be controlled.

  3. The Mission of Southwest Airlines The Mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.

  4. To Our Employees We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer. -January 1988

  5. Internal Analysis and its Roles Internal analysis provides a comparative look at a firm’s capabilities and helps answer the following questions

  6. What are the firm’s strengths? • What are the firm’s weaknesses? • How do these strengths & weaknesses compare to competitors? • Are resources and capabilities strengths and/or weaknesses? • Are resources and capabilities likely sources of competitive advantage? • Can the firm establish strategies that will exploit any sources of competitive advantage

  7. The VRIO Framework Four Important Questions: • Is the resource Valuable? • is the resource Rare? • Is the resource Imitable? • Can the Organization make use of it?

  8. Applying the VRIO Framework The Question of Value • in theory: Does the resource enable the firm to exploit an external opportunity or neutralize an external threat? • the practical: Does the resource result in an increase in revenues, a decrease in costs, or some combination of the two? (Levi’s reputation allows it to charge a premium for its Docker’s pants)

  9. Applying the VRIO Framework The Question of Rarity • if a resource is not rare, then perfect competition dynamics are likely to be observed (i.e., no competitive advantage, no above normal profits) • a resource must be rare enough that perfect competition has not set in • thus, there may be other firms that possess the resource, but still few enough that there is scarcity (several pharmaceuticals sell cholesterol-lowering drugs, but the drugs are still scarce—look at prices)

  10. Applying the VRIO Framework The Question of Imitability • the temporary competitive advantage of valuable and rare resources can be sustained only if competitors face a cost or other in disadvantage imitating the resource » intangible resources are usually more costly to imitate than tangible resources (Harley-Davidson’s styles may be easily imitated, but its reputation cannot)

  11. The Question of Imitability Barriers to Imitation Unique Historical Conditions (Caterpillar) • first mover advantages • path dependence Causal Ambiguity (Southwest Airlines) • causal links between resources and competitive advantage may not be understood • Patents • offer a period of protection if the firm is • able to defend its patent rights • required disclosure may actually decrease • the cost of imitation, and the timing

  12. Applying the VRIO Framework Value, Rarity, & Imitability If a firm’s resources are: The firm can expect: Valuable, Rare, but not Costly to Imitate Temporary Competitive Advantage Sustained Competitive Advantage (if Organized appropriately) Valuable, Rare, and Costly to Imitate

  13. SWOT MATRIX • Opportunities • External • Future Oriented • Niches • Strengths • Internal • Competitive Advantage • Distinctive Competence • Threats • External • Vulnerability • Attack Point • Weaknesses • Internal • Disadvantage • Area for Improvement • Purposes • Qualitative Assessment of Current Condition • Competitor Assessment • Strategic “What-if” Analysis • Product to Business Unit to Corporate Analysis

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