MGT 104 (Strategic Management)

BACARAT, NORODEN P.
BS – ACCOUNTANCY

QUIZ / ASSIGNMENT #2

Answer the following questions:

1.) Give 3 examples of Vision Statement of different companies.

Amazon
"Our vision is to be earth's most customer centric company; to build a place where people
can come to find and discover anything they might want to buy online." (Quoted from
Amazon.com on Facebook)
PepsiCo
"Our vision is put into action through programs and a focus on environmental
stewardship, activities to benefit society, and a commitment to build shareholder value by
making PepsiCo a truly sustainable company. At PepsiCo, we're committed to achieving
business and financial success while leaving a positive imprint on society - delivering
what we call Performance with Purpose." (Quoted from PepsiCo.)
Apple Computer
"We believe that we are on the face of the earth to make great products and that's not
changing. We are constantly focusing on innovating. We believe in the simple not the
complex. We believe that we need to own and control the primary technologies behind
the products that we make, and participate only in markets where we can make a
significant contribution. We believe in saying no to thousands of projects, so that we can
really focus on the few that are truly important and meaningful to us. We believe in deep
collaboration and cross-pollination of our groups, which allow us to innovate in a way
that others cannot. And frankly, we don't settle for anything less than excellence in every
group in the company, and we have the self-honesty to admit when we're wrong and the
courage to change. And I think regardless of who is in what job those values are so
embedded in this company that Apple will do extremely well."- Tim Cook, CEO of
Apple Computer (Quoted on Business Insider).
2.) Give 3 examples of Mission Statement of different companies.
Twitter
The mission: “To give everyone the power to create and share ideas and information,
instantly, without barriers.” The technology company aims to remove communication
barriers and help people connect with one another. What's more heartwarming than that?
Clarks
The mission: “Our passion is to listen to our customers and deliver a product that allows
the consumer to feel the pride, respect and trust of everyone at the Clarks Companies
N.A.” Clarks focuses on guiding employees to create high-quality products and deliver
excellent customer service.
MGM Resorts International
The mission: “MGM Resorts International is the leader in entertainment & hospitality—a
diverse collection of extraordinary people, distinctive brands and best in class
destinations. Working together, we create partnerships and experiences that engage,
entertain and inspire.” MGM's commitment to diversity encourages its employees to
work collaboratively as they pursue innovation.
3.) Discuss the importance of Vision and Mission Statements?
The vision and mission statements serve as focal points for individuals to identify
with the organizational processes and to provide them with a sense of direction, while
discouraging those who do not wish to follow them from participating in the
organization's activities.
4.) What are the characteristics of Mission Statements?

Organizations legitimize themselves by performing some function that is valued by

society. A mission statement defines the basic reason for the existence of that
organization. Such a statement reflects the corporate philosophy, identity, character, and
image of an organization. It may be defined explicitly or could be deduced from the
management’s actions, decisions, or the chief executive’s press statements. When
explicitly defined it provides enlightenment to the insiders and outsiders on what the
organization stand for. In order to be effective, the following characteristics of mission
statement need to be present in an organization.

 It should be feasible A mission should always aim high but it should not be an
impossible statement. It should be realistic and achievable its followers must find
it to be credible. But feasibility depends on the resources available to work
towards a mission. In the sixties, the US National Aeronautics and Space
Administration (NASA) had a mission to land on the moon. It was a feasible
mission that was ultimately realized.
 It should be precise. A mission statement should not be so narrow as to restrict the
organization’s activities nor should it be too broad to make itself meaningless. For
instance, ‘Manufacturing bicycles’ is a narrow mission statement since it severely
limits the organization’s activities, while mobility business’ is too broad a term, as
it does not define the reasonable contour within which the organization could
operate.

 It should be clear. A mission should be clear enough to lead to action. It should not
be a highsounding set of platitudes meant for publicity purposes. Many
organizations do adopt such statements but probably they do so for emphasizing
their identity and character. For example, Asian Paints stresses leadership through
excellence’, while India Today see itself as ‘the complete news magazine’. The
Administrative Staff College of India considers itself as ‘the college for practicing
managers’ and Bajaj Auto believes in ‘Providing, value for money, for years’. To
be useful, a mission statement should be clear enough to lead to action. The ITC’s
stated corporate philosophy of aligning its organizational activities with national
priorities helps it in choosing areas for diversification like the hotel, paper and
agroindustry.

 It should be motivating. A mission statement should be motivating for members of

the organization and of society, and they should feel it worthwhile working for
such an organization or being its customers. A bank, which lays great emphasis on
customer service, is likely to motivate its employees to serve its customers well
and to attract clients. Customer service, therefore is an important purpose for a
banking institution.

 It should be distinctive. A mission statement, which is indiscriminate, is likely to

have little impact. If all scooter manufacturers defined their mission in a similar
fashion, there would not be much of a difference among them. But if one defines it
as providing scooters that would provide ‘value for money, for years’ it will create
an important distinction in the public mind.
 It should indicate major components of strategy. A mission statement along with
the organizational purpose should indicate the major components of the strategy to
be adopted. The chief executive of Indal expressed his intentions by saying that his
company “begins its fifth decade of committed entrepreneurship with the promise
of a highly diversified company retaining aluminum as its mainline business, but
with an active presence in the chemical, electronics and industrial equipment
business”. This statement indicates that the company is likely to follow a
combination of stability, growth and diversification strategies in the future.

 It should indicate how objectives are to be accomplished. Besides indicating the

broad strategies to be adopted a mission statement should also provide clues
regarding the manner in which the objectives are to be accomplished. The Centre
 for Development of Telematics (CDOT) had set its first three yearsmission
(198487) as developing, designing, and engineering a large digital exchange
suitable for Indian conditions and its second mission (198790) as developing the
technological prerequisites for an integrated systems digital network of the future.
These mission statements specially deal with the objectives to be achieved within
a given time period.
5.) Give an examples of the essential Components of a Mission Statement?

 Products or Services :
A mission statement should indicate the products or services the organisation deals in.
For example : the mission statement of Assurant is, "to be the premier provider of
targeted specialised insurance products and related services in North America and
selected other markets".

 Target Market :
An organization should indicate the type of market it serves in a mission statement.
For example : while the mission of a cosmetic company may serve only for women, a
company producing shaving creams and after shave lotions would serve only for men.

 Technology :
A mission statement should describe about the technology being implemented for
achieving the organizational goals. This helps the organization in acquiring better
technology vendors.

 Philosophy :
An efficient mission statement should outline the values held by the organisation. The
values may include bringing inspiration and innovation, adopting customer centric
approach, creating lasting solutions to poverty as well as hunger, and raising voice
against social injustice, etc.

 Policy for Employees :

A mission statement should indicate its policies regarding its employees so that they
realise their importance in the organisation.

 Self-Concept :
A mission statement should always define the competitive advantage of the
organisation.
 For example : the mission statement of Toyota is "Toyota will lead the way to the
future of mobility, enriching lives around the world with the safest and most
responsible ways of moving people. Through commitment to quality, constant
innovation and respect for the planet, we aim to exceed expectations and be rewarded
with a smile. We will meet challenging goals by engaging the talent and passion of
people, who believe there is always a better way".

 Concern for Survival, Growth, and Profitability :

For a commercial organisation it is essential to mention its financial objectives in the
mission statement. This will allow the stakeholders to know the financial motives and
strategies.
For example : the mission statement of McGraw-Hill is, "to serve the worldwide need
for knowledge at a fair profit by adhering, evaluating, producing, and distributing
valuable information in a way that benefits our customers, employees, other investors,
and our society".

 Public Images :
By formulating a mission statement, strategic leaders are able to convey the basic
features and functions of the organisation which helps in creating a positive public
image. It helps the managers to guide the employees as per the approved public image.

Deadline: February 12, 2022 (Saturday) 1PM