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  1. Mission
    The values and expectations of those who most strongly influence strategy about the scope and posture of the organization.
  2. Features of successful mission
    • Ashridge College Model
    • Purpose: Why does the organization exist? Who does it exist for?
    • Strategy: The competitive position and distinctive competence of the organization
    • Policies and standards of behavior: The policies and behavioral patterns underpinning its work
    • Values: What the company believes in which is replicated in employees’ personal values
  3. Role of mission in strategy
    • Rational approach: Mission is the starting-point of strategy formulation. It is the basis for the setting of strategic objectives and any strategy developed must be shown to be consistent with the mission before it is adopted.
    • Emergent approach: Mission is embedded in the culture of the organization and used to generate strategic initiatives
  4. Quantifying Objectives
    • Must be quantified, otherwise progress towards them cannot be measured.
    • For objectives to be use in practice, they must be SMART. Specific, Measureable, Achievable, Relevant and Timebound.
    • Objectives specified this way are often referred to as “closed” objectives
  5. Stakeholders
    • Groups or persons with an interest in what the organization does
    • Internal stakeholders: Intimately connected with the company, their objectives are likely to have a strong influence on how it is run. Employees, management
    • Connected stakeholders: Supply resources to the organization such as capital or sales revenue. Shareholders, customers, suppliers, financiers
    • External stakeholders: Influence the context in which the organization operates. The community, government, pressure groups
  6. Degree of Dependency
    • Disruption: Can the stakeholder disrupt the organizations plans
    • Replacement: Can the firm replace the relationship
    • Uncertainty: Does the stakeholder cause uncertainty in the firm’s plans
Card Set
Ch2- The Purpose of a Business
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