MISSION AND

STRATEGIES
Mission
• The reason for an organization’s existence
• Mission statement
• States the purpose of the organization
• The mission statement should answer the question of “What business are we in?”
• The mission statement serves as the basis for organizational goals
Goals
• Provide detail and the scope of the mission
• Goals can be viewed as organizational destinations
• Goals serve as the basis for organizational strategies
Organizational Strategy
• A plan for achieving organizational goals
• Serves as a roadmap for reaching the organizational destinations

• Organizations have
• Organizational strategies
• Overall strategies that relate to the entire organization
• Support the achievement of organizational goals and mission
• Functional level strategies
• Strategies that relate to each of the functional areas and that support
achievement of the organizational strategy
Tactics and Operations
• Tactics
• The methods and actions taken to accomplish strategies
• The “how to” part of the process

• Operations
• The actual “doing” part of the process
Examples of Strategies
• Low Price
• outsource operations to countries with low labor cost
• use capital-intensive methods to achieve high output volume and low unit cost
• Specialization
• Focus on narrow product lines or limited services to achieve higher quality
• Variety
• Focus on customization
• Newness
• Focus on innovation to create new products or services
• Service
• Focus on various aspects of service (e.g., helpful, reliable, etc)
• Sustainability
• Focus on environmentally friendly and energy efficient operations
• Quality
• focus on quality in all phases of an organization in order to achieve higher quality than competitors
• Responsiveness (time-based strategies)
• Strategies that focus on the reduction of time needed to accomplish tasks
Operations strategy
• The organizational strategy provides the overall direction for the
organization. It is broad in scope, covering the entire organization.

• Operations strategy is narrower in scope, dealing primarily with the

operations aspect of the organization. Operations strategy relates to
products, processes, methods, operating resources, quality, costs,
lead times, and scheduling.
• In order for operations strategy to be truly effective, it is important to link it to
organization strategy
Examples of Strategies
Organizational Operations Examples of Companies or
Strategy Strategy Services
Low Price Low Cost Wal-Mart, Southwest Airlines
Responsiveness Short- processing times McDonald’s restaurant
On- time delivery FedEx
Differentiation: Quality High performance design and / or BMW
high quality processing consistent
quality Coca-Cola
Differentiation: Newness Innovation Apple
Differentiation: Variety Flexibility Burger King (Have it your way)
Volume McDonald’s(Buses Welcome)
Differentiation: Service Superior customer service Disneyland
IBM
Differentiation: Location Convenience Supermarkets
Banks, ATMs
Assignment
• Choose three companies from the given below and describe their core organizational strategies in terms
of the following options.
• Low Price
• Specialization
• Responsiveness
• Differentiation: Quality
• Differentiation: Newness
• Differentiation: Variety
• Differentiation: Service

• Go online and find the mission statements of the three companies. Are their strategies aligned with
their mission statements?
• Amazon.com. Inc, Apple Inc., Toyota Motor Corp., Shell, Robinsons Bank Corporation ., Nestle, Jolibee,
San Miguel Corporation, BDO Unibank, SM Investments Corporation, Accenture, Procter and Gamble,
Smart Communications and Manila Water.