Establishing

Company
Direction
 vision
What do we want to become?
as a motivator: profits? written from a
short and concise customers POV: what
can we do for the
involve your people customer?
show your firms
business type
Vision:
to help NIKE, Inc. and our
consumers thrive in a
sustainable economy where
people, profit and planet are
in balance.
 old Ford Motor Company vision:
To make the automobile accessible to every
American

new vision:
To provide personal mobility for people around
the world.
mission
What is our business?
reason for being
establishes objectives and
formulates strategies
GAME, omg
Vision:
To share great coffee with our friends
and help make the world a little
better.
Mission:
To inspire and nurture the human spirit
one person, one cup and one
neighborhood at a time.
 Vision:
Lead and inspire Filipinos to create a
better tomorrow.

Mission:
Empower Filipinos everywhere with customer-
focused digital innovations that unlock and share
their infinite potential.
Vision
To provide personal
mobility for people around
the world.
involve people

use discussion groups

Steps
ask individuals to formulate own statements

merge these statements

 is it
a waste of
time?
 correlation

vision strategic operational

& objectives strategy
mission
what does
customers a
vision-focus
suppliers
shareholders
mission do
Corporate
Governanc
e
Corporate Governance
concerned with the functioning of the Board
of Directors
system of rules, practices, and processes
by which a company is directed and
controlled
 Board of Directors

Shareholders Managers
McKinsey & Company
Scandal
 Dominic Barton
director: global management
focus: changing the company culture
Rajat K. Gupta Anil Kumar
#shookt
new personal investment policy

online tutorial requirements

The Role of
Top
Management
 Top Management

Teamsof the key managers who are responsible for selecting and
Composed
mplementing the firms strategies

A heterogeneous top management team:

has varied expertise and knowledge
can draw on multiple perspectives
will evaluate alternative strategies
builds consensus
 Firm Performance and Strategic
Change
Heterogenous top management teams
Have difficulty functioning effectively as a team.
Require effective management of the team to facilitate the
process of decision making; but
Are associated positively with innovation and strategic
change
May force the team or members to think outside of the
box and be more creative
Have greater capacity to provide effective strategic
leadership in formulating strategy
 CEO and Top management Team Power

Higher performance is achieved when board of directors

are more directly involved in shaping strategic direction

Appoint sympathetic outside board members

A Powerful Have inside board members who report to the
CEO
CEO Have significant control over the boards
actions
Hold the position of chairman of the board (CEO
duality).
 CEO and Top management Team Power
Duality often relates to poor performance and slow response to
change CEOs can gain so much power
CEOs of long tenure can also that they are virtually
wield substantial power independent of oversight by
the board of directors

The most effective forms of governance share power and influence

among the CEO and board of directors
Viewing Strategy from
the Stakeholders
Perspective
Stakeholde
rs Individuals and groups who can affect, and are affected by, the
strategic outcomes achieved and who have enforceable claims
on a firms performance
Shareholde
Claims on the firms
The more critical
Managers must find
ways to either
Invested capital in a firm
performance are in the expectation of earning or a
rs positive return on their investment
enforced by the
stakeholders ability
and valued a
stakeholders
accommodate
insulate the
organization from the
to withhold participation, the demands of
participation greater a firms stakeholders
essential to the
firms survival dependency on it. controlling critical
resources
 Classifications
Capital Market Product Market Organizational

Shareholders Primary Employees

Major suppliers of costumers Managers
capital Suppliers Nonmanagers
Host communities
Unions
 Vision:
We excel in providing great tasting food that
meets local preferences better than anyone

Mission:
To serve great tasting food, bringing the joy of
eating to everyone
Vision:
To become a modern, progressive burger
company delivering a contemporary customer
experience.
Mission:
To be our customers favorite place and way to eat &
drink.
Vision:
To lead the digital convergence movement

Mission:
Inspire the World, Create the Future
Vision:
Leader in accountancy and business education,
research and public service

Mission:
To produce leaders in the fields of accountancy and
business administration committed to excellence and
public service.