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Lecture 6

Lecture Note for MGTA03, Lecture 6

5 Pages
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Department
Management (MGT)
Course Code
MGTA01H3
Professor
Ingrid L.Stefanovic

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Lecture Notes: Chapter 6
Managing the Business Enterprise
Key Points to Lecture:
x Strategy - defined and explained
x Mission - setting the strategic direction
x Goals - short, medium, long term goals
x Personal exercise relating "goals" to "mission"
x Management: Planning, Organising, Leading, Controlling
Business Strategy Defined
Broad program for defining and meeting the organizDWLRQVJRDOV
Developing business strategy
x To develop strategy, managers must step back from day-to-day operations
and take longer view.
x Look at long term( Ex. Not worrying about midterm due next month, worry
about what graduate school you want to go in 4 years)
x Strategic Managers attempt to answer key questions:
o Where do I want to be in 5 years time? Hosting Stanley cup parade
o Where am I now? Last place.
o How do I get there from here? Get top draft choices, make good
trades
x Strategic managers are Senior: Chairman, President, CEO
MISSION
x Remember definition of Business: "...an organised effort..."
x A business is formed by people with a common purpose.
x Motivated by opportunity to provide a service and make a profit.
www.notesolution.com
x In large, bureaucratic, multinational, multiproduct, multi-divisional
organisations: may be difficult to remember what the cause is.
x One of the jobs of strategic managers is that they have to make it very clear
IRUDOOWKHSHRSOHWKDWZRUNIRUWKHP³WKLVLVZKHUH,ZDQWWREHLQ\HDUV
WKLVLVZKHUHZHDUHQRZWKLVLVKRZZHJHWWKHUH´
o Example: Cliff Fletcher situation(Toronto Maple Leafs)
x Strategic managers as bus drivers
o A bus driver is someone who sits at the front of the bus, when you get
on the bus you ask if it is going to montreal, he says yes it will be
WKHUHE\RFORFNLZRXOGQRWJHWRQWKHEXVLIKHGLGQWJRWKHUH
GLGQWNQRZKRZWRJHWWKHUHRUGLGQWJHWWKHUHRQWLPH7KHUHIRUHKH
has to a have a plan on how to get there.
x A Good senior manager is someone who can turn to everyone underneath
\RXDQGEHDEOHWRVD\³,PLQFKDUJHLNQRZZKHUHLDPJRLQJDQGWKLVLV
wKDWLDPJRLQJWRGR´Æ mission
Therefore:
Essential that Senior Management of organisations establish and communicate
that purpose
"If you don't know where you're headed, you'll never get there"
This has led to concept of: "Business Mission"
i.e the businesses, long-term, over-arching direction
Increasingly, businesses broadcast their "Mission Statement"
Mission Statement
An organisation's statement of how it will achieve its purpose.
i.e. "Where are we going....?"
Usually define the firm's business activities, in terms of basic product or services,
primary customer groups, market need, technological field or some combination of
these.
A Mission Statement should:
1) define what the organisation is and what it aspires to be
2) distinguish an organisation from all others
3) serve as framework for evaluating both current and prospective activities
www.notesolution.com

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Description
Lecture Notes: Chapter 6 Managing the Business Enterprise Key Points to Lecture: x Strategy - defined and explained x Mission - setting the strategic direction x Goals - short, medium, long term goals x Personal exercise relating "goals" to "mission" x Management: Planning, Organising, Leading, Controlling Business Strategy Defined Broad program for defining and meeting the organizDWLRQ¶VJRDOV Developing business strategy x To develop strategy, managers must step back from day-to-day operations and take longer view. x Look at long term( Ex. Not worrying about midterm due next month, worry about what graduate school you want to go in 4 years) x Strategic Managers attempt to answer key questions: o Where do I want to be in 5 years time? Hosting Stanley cup parade o Where am I now? Last place. o How do I get there from here? Get top draft choices, make good trades x Strategic managers are Senior: Chairman, President, CEO MISSION x Remember definition of Business: "...an organised effort..." x A business is formed by people with a common purpose. x Motivated by opportunity to provide a service and make a profit. www.notesolution.com x In large, bureaucratic, multinational, multiproduct, multi-divisional organisations: may be difficult to remember what the cause is. x One of the jobs of strategic managers is that they have to make it very clear IRUDOOWKHSHRSOHWKDWZRUNIRUWKHP³WKLVLVZKHUH,ZDQWWREHLQ\HDUVWKLVLVZKHUHZHDUHQRZWKLVLVKRZZHJHWWKHUH´ o Example: Cliff Fletcher situation(Toronto Maple Leafs) x Strategic managers as bus drivers o A bus driver is someone who sits at the front of the bus, when you get on the bus you ask if it is going to montreal, he says yes it will be WKHUHE\RFORFNLZRXOGQRWJHWRQWKHEXVLIKHGLGQ¶WJRWKHUHGLGQ¶WNQRZKRZWRJHWWKHUHRUGLGQ¶WJHWWKHUHRQWLPH7KHUHIRUHKHhas to a have a plan on how to get there. x A Good senior manager is someone who can turn to everyone underneath \RXDQGEHDEOHWRVD\³,PLQFKDUJHLNQRZZKHUHLDPJRLQJDQGWKLVLVwKDWLDPJRLQJWRGR´Æ mission Therefore: Essential that Senior Management of organisations establish and communicate that purpose "If you don't know where you're headed, you'll never get there" This has led to concept of: "Business Mission" i.e the businesses, long-term, over-arching direction Increasingly, businesses broadcast their "Mission Statement" Mission Statement An organisation's statement of how it will achieve its purpose. i.e. "Where are we going....?" Usually define the firm's business activities, in terms of basic product or services, primary customer groups, market need, technological field or some combination of these. A Mission Statement should: 1) define what the organisation is and what it aspires to be 2) distinguish an organisation from all others 3) serve as framework for evaluating both current and prospective activities www.notesolution.com Mission statements designed to provide guidance and declare attitudes They should be stated in terms sufficiently clear to be widely understood throughout the organisation. Examples of Mission Statements K-Mart - Mission "To provide superior value and quality with low prices to both the company's customers and shareholders as the world's largest discount retailer and major operator of superdrugstores, warehouse home improvement centres and bookstores." Division of Management - UTSC "Our mission is to provide our students with the best pre-professional undergraduate management education in Canada." Mission versus Goals "The longest journey begins with the first step" - Mao Tse Tung Goals: "How will we get there...?" Long Term Goals: 5+ years horizon Intermediate Goals: 1+ years horizon Short Term Goals: Less than 1 year horizon Exercise in Establishing Personal Mission and Goals Step 1: In 2 - 3 sentences, decribe: What do you want, in 10 years' time: your job, life, wealth, education, etc. Step 2: Think about your response to Step 1 In order to get there from here: www.notesolution.com What 3 things must you do to? Step 3: Think about your response to Step 2 In order to get there from here: What 3 things must you do: This year? Step 4: Think about your response to Step 3 In order to get there from here: What 3 things must you do: Today? Business Strategy is the big picture stuff Management Process of Planning, Organising, Leading and Controlling a business's resources, in order to achieve its goals Small businesses goals are very clear to see, complete opposite of big businesses Planning: Determining what needs to be done, best way to do it Organising: Mobilising the necessary resources, figuring out what resources you need Leading: Guiding and motivating employees Controlling: Monitor performance, if necessary, make improvements.Controlling is seeing how people are doing, running tests, make sure people are doing what www.notesolution.com they are supposed to be doing. Example: In-Class Test, another example is mom asking son to wash hands, and she checks his hands and they are not clean so he does it again. Controlling is not control, power, punishment. IMPORTANT!!! www.notesolution.comLecture Notes: Chapter 6 Managing the Business Enterprise Key Points to Lecture: N Strategy - defined and explained N Mission - setting the strategic direction N Goals - short, medium, long term goals N Personal exercise relating goals to mission N Management: Planning, Organising, Leading, Controlling Business Strategy Defined Broad program for defining and meeting the organiz,9L438J4,O8 Developing business strategy N To develop strategy, managers must step back from day-to-day operations and take longer view. N Look at long term( Ex. Not worrying about midterm due next month, worry about what graduate school you want to go in 4 years) N Strategic Managers attempt to answer key questions: o Where do I want to be in 5 years time? Hosting Stanley cup parade o Where am I now? Last place. o How do I get there from here? Get top draft choices, make good trades N Strategic managers are Senior: Chairman, President, CEO MISSION N Remember definition of Business: ...an organised effort... N A business is formed by people with a common purpose. N Motivated by opportunity to provide a service and make a profit. www.notesolution.com
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