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Lecture 6

Lecture Note for MGTA03, Lecture 6

by OC2

Department
Management (MGT)
Course Code
MGTA01H3
Professor
Ingrid L.Stefanovic
Lecture
6

Page:
of 5
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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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:
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