Tuesday, February 2, 2010

Strategic Management:: Tutorial 2

Review and Discussion – Chapter 2

3. Why do you think organizations that have a comprehensive mission statement tend to be high performers? Does having a comprehensive mission cause high performance?

Answer: Having a comprehensive mission statement does not guarantee or cause high performance. However, a comprehensive mission statement can contribute significantly to high performance. As described in the chapter, a comprehensive mission statement provides numerous benefits that usually translate into high performance.

6. Explain the principal value of a vision and mission statement.

Answer: Many organizations develop both a mission statement and a vision statement. Whereas the mission statement answers the question, “What is our business?” the vision statement answers the question, “What do we want to become?” Both the vision statement and the mission statement ensure unanimity of purpose within the organization and make important statements about “who the firm is” and “what it wants to become” to outside stakeholders.

15. List the benefits of having a clear mission statement.

Answer: Mission statements provide the following benefits: 1) agreement on the purpose of the organization, 2) standard for allocation of resources, 3) basis for organizational climate, 4) focal point for individuals to identify with the organization’s purpose and direction, 5) facilitation of the translation of objectives into a work structure, and 6) specification of organizational purposes into objectives. Mission statements are essential in guiding strategic planning.

16. How often do you feel a firm’s vision and mission statement should be changed?

Answer: This depends on the individual firm. Vision and mission statements should be evaluated on a regular basis to determine if they are still appropriate. Firms may wish to change the statements in times of crisis and in times of success. Ultimately the vision and mission should be in tune with the company and its environment.


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