Lecture Note for MGTA03, Lecture 6

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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.
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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
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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
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has to a have a plan on how to get there.
x A Good senior manager is someone who can turn to everyone underneath
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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
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