Mission statements should be more than just an expression of a companyA????1s purpose and ambition. Andrew Campbell, a director of the Ashridge Strategic Centre and a long-time contributor to Long Range Planning, states that a mission statement should also be a company flag to rally around, a signpost for all stakeholders, a guide to behavior, and a celebration of a companyA????1s culture. Evaluate a company that you admire or your own companyA????1s mission statement using the following 10 question test Campbell has developed. Score each question listed below as 0 for no, 1 for somewhat or 2 for yes. According to Campbell, a score of over 15 is exceptional, and a score of less than 10 suggests that more work needs to be done.
How does the companyA????1s mission statement rate according to CampbellA????1s checklist?
What could they improve upon? Support and substantiate your answer with examples.
Rewrite the companyA????1s mission statement containing your suggestions
Mission Statement Question
Rating (0,1,2)
Does the statement describe an inspiring purpose that avoids playing to the selfish interests of stakeholders?
Does the statement describe the companyA????1s responsibilities to its stakeholders?
Does the statement define a business domain and explain why it is attractive?
Does the statement describe the strategic positioning that the company prefers in a way that helps to identify the sort of competitive advantage it will look for?
Does the statement identify values that link with the organizationA????1s purpose and act as beliefs with which employees can feel proud?
Do the values resonate with and reinforce the organizationA????1s strategy?
Does the statement describe important behavior standards that serve as beacons of the strategy and the values?
Are the behavior standards described in a way that enables individual employees to judge whether they are behaving correctly?
Does the statement give a portrait of the company, capturing the culture of the organization?
Is the statement easy to read?
Source: Long Range Planning, Vol. 30, No. 6. 1997, Campbell, A????1Mission StatementsA????1 pp. 931-932
What is the organizationA????1s vision that you chose in part one?
What are their strategies that they are pursuing to achieve the vision?
Do you think they are pursuing the right vision and strategies for their business in their indus
try? Explain.
Analyzing the External Environment of the Firm
Complete the following exercise,
As the owner of a new business seeking a loan from a bank to finance the construction and operation of three new store locations, you have been asked to provide the loan officer with a brief analysis of the industryA????1s environment.
Provide the type of business and location on where you plan to open up the new business.
Provide information for six of the factors identified in the general environment that you should consider for this business (demographic, sociocultural, legal/political, technological, economic, and global).
Provide a PorterA????1s five-forces diagram for the business that you chose during week 2. Briefly discuss the nature and strength(low, medium, high) of each of the five competitive forces in this industry. Provide at least 2 components for each force. You may need to conduct additional Internet research to expand your understanding of competition in this particular industry and do a competent five-forces analysis. For example if you choose the food industry and select fast food, you might use McDonaldA????1s, Taco Bell, Sub-way, etc. as competitors in your analysis.
Develop and provide a detailed Strength, Weakness, Opportunity, Threat (S.W.O.T.) for the business that you developed in question 1. Provide four components for each area
Develop a TOWS matrix using the S.W.O.T. that you completed in question 2. Provide two strategies for each area.
Financial Ratios, Payback Period and Return on Assets (ROA)
What are the advantages and disadvantages of conducting a financial ratio analysis of a firm? List three advantages and three disadvantages
What are some of the ethical issues that arise when a firm becomes overly zealous about (developing and using) the financial ratio analysis process? List two issues.
Select a firm that competes in an industry (excluding JetBlue or Southwest Airlines, or the cases we complete during the semester) in which you are interested.
Drawing upon published financial reports, complete two Return on Assets, Current Ratio, and Capital Intensity Ratio financial analysis – one for each of the recent two years.
Based on changes over time and a comparison with industry norms, evaluate the firmA????1s strengths and weaknesses in terms of its financial position. Provide two strengths and two weaknesse