Corporate and Division Strategie Planning

By prepnrlng stateineuts of missiott, ßO]icy, siratcgy, and goäls, headquarterscstahlislies the framewoik within wlrich the divisions and husiness uniiS prtpare tltcir plans. Sonic corporations gfrffc their Business uniis a 1hjl of freedom in set their üvvn salcs and profil goals and Strategien. Oihers sei goals fr>r ili^fcr busiricssuuits bin let them develop theittiwn sirategies. Still mhers set the goals and parllclpate in developing individual husiness utiit strategius,20 All corporate hendquarteis undertake Four plaiming aeiivitics:

I. Defining die corporate missirm

Ii. i ■ sta L>Lä shi ng st raleglc b 11 si ness 11 ni t s

3. Assfgnfng resourtes Do each SHiJ

Defining the Corporate Mission

An organization exists U) accomplish something: to make Cars, lend money, providfc a Rights lodging, and so on, ils- specific mission or purpose is usually clear when the business starts. Over time the mission may change, lo laki- advantage «I' new opportunities or respond to neiv market conditions. changed its mission from being the world's largest online bookstore to aspiring to become [be world's largest online store, eliay changed its mission from running online auctions for collectors to running online auctions covering all kinds of goods.

To define i^ mission, a company should address Peler Druckers classic questions:-* What is our business? Who is the customer? What is of value to the customer? What will our business beV What should our business be?These simple-sounding questions arc among the most difficult a company will ever have to answer. Successful companies continuously raise these questions and answer tin-m thoughtfully a nil thoroughly, A company must redefine its mission if that mission has lust credibility or no Longer defines an optimal course for growth.

Organi nations develop mission statements to share with managers, employees, and iiu many cases) customers. A clear, thoughtful mission statement provides employees with a Shared sense of purpose, direction, and opportunely. The statement guides geographically dispersed employees to Work independently and yet collectively toward realizing the organiza t ion's goals,

Mission statements are at their best when they reliée! a vision, an almost ''impossible dream" thai provides a direction for [he company for the next It) lo 2n years. Sony's former president. Akio Mo rit a. wanted everyone to have access to "personal penable sound," so his company created the Walkman and portable CD player, Fred Smith wanted to deliver mail anywhere irt the United Stales before 10:30 the nest day, so he created FedEx. Table2.1 >;ives examples of three mission sta temen is,

(¡ood mission statements have three major characteristics. FitSt. they focus Olí a limited number of goals. The statement. "We want I o produce the highest-quality product?, offer the most service, achieve the widest distribution, and sell at the lowest prices" claims ioo much. Second, mission statements stress die company i Major policios and values. They narrow the range of individual discretion so that employees act consistently on


Rubbermaid Commercial Products, Inc.

■ Our Vision is to be Ihe Global Market Share Leader in cadi of the markets ws serve. We will cam this readership position tr>' pwdintf lo our distributor and endorser customers innovative high-quality. cost'elective and environmentally responsible pioducls. Vie will add value to these p'oducls try providing legendary customer service lh^ougJi our Uncompromising Commitmenl lo Customer Salislaclion."


"The purpose o1 Motorola is loliunurably serve the needs of the comifitatfty by providing producis and services of superior quaiity a] a fair price lo our customers; lo do ihis so as lo earn an adequate proiil which is required for ¡he tolaJ enterprise lo grow; and by so doing provide ihc opportunity for our employees arnl shareholders to achieve Iheir peascnafc'e personal otvech^s"


"We help people trade pra.clically anything on earth We will continue to enhance the online trading experiences ol air—collectors, dealers. Ismail businesses, unique item seekers, bargain hunters, opportunity sellers, ana browsers.*

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