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1 Introduction:
Vision and Mission are the inspiring words chosen by successful leaders to clearly and concisely convey the direction of the organization. By crafting a clear mission statement and vision statement, you can powerfully communicate your intentions and motivate your team or organization to realize an attractive and inspiring common vision of the future. A Mission Statement defines the organization's purpose and primary objectives. Vision Statements also define the organizations purpose, but this time they do so in terms of the organization's values rather than bottom line measures. Vision statement communicates both the purpose and values of the organization.
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1.3 Examples
BSNL Vision Statement
To become the largest telecom service provider in Asia.
1.4 Characteristics
1. Vision is developed through sharing across an organization. 2. Methods of convincing the others about vision.
3. Change agents.
people.
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Infosys
Vision: To be a globally respected corporation that provides best-ofbreed business solutions, leveraging technology, delivered by best-inclass people."
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Use wording that will inspire your team. Think of adjectives and sentences that will get the team excited and will make them think they are part of something that is much bigger than something they could have thought of themselves.
Get other people on the team to critique the draft of the vision to make sure it's effective and inspiring. If there are any key customers the organization trusts, ask them to review the draft too.
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CHAPTER TWO
2.1 Mission
Organizations relate their existence to satisfying a particular need of the society. They do it in terms of their mission. Mission is a statement which defines the role that an organization plays in a society. It refers to the particular need of that society for instance, its information needs. 2.2 Defining Mission Essential purpose of the organization, concerning particularly why it is in existence, the nature of the business it is in, and the customers it seeks to serve and satisfy. Purpose or reason for the organizations existence. Mission is an enduring statement of purpose that distinguishes one firm from other similar firm. In short the mission describes the product, market and technological areas of emphasis for the business.
2.4 Characteristics
3. Feasible 4. Precise 5. Clear 6. Motivating 7. Distinctive 8. Indicates major components of strategy
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The mission statement of an organization is normally short, to the point, and contains the following elements: Provides a concise statement of why the organization exists, and what it is to achieve; States the purpose and identity of the organization; Defines the institution's values and philosophy; and Describes how the organization will serve those affected by its work.
of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large."
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Get feedback from other members of the organization once the statement is drafted.
A Mission statement is more specific to what the enterprise can achieve it. Mission 1. Mission is the reason of existence of an organization. 2. Mission is often an action or group of individuals that are formed with the intent of action. 3. Mission can refer to a group of individuals, the act that a group or individual is to carry out, or to the actions involved in the completion. 4. Mission is achievable. 5. Every organization can have more than one mission.
Vision 1. Vision is the ultimate goal. 2. Vision is a conceptual thing similar to the ideal of a real thing. 3. Vision generally refers to a concept.
4. Vision may not achieve always. 5. Every organization has only one vision.
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That depends. If you have a new start up business, new program or plan to reengineer your current services, then the vision will guide the mission statement and the rest of the strategic plan. If you have an established business where the mission is established, then many times, the mission guides the vision statement and the rest of the strategic plan. Either way, you need to know your fundamental purpose - the mission, your current situation in terms of internal resources and capabilities (strengths and/or weaknesses) and external conditions (opportunities and/or threats), and where you want to go - the vision for the future. It's important that you keep the end or desired result in sight from the start.
CHAPTER THREE
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General Motors
General Motors is a major American automotive corporation. The following profile and background facts about General Motors provides company and business information for research and general interest including business address and telephone details, business industry, company description, slogan, General Motors mission statement and or Vision statement and whether General Motors appears in the Fortune 500 company listing - all useful business information.
As a top company in the Automotive industry General Motors specialize in the manufacture of cars and trucks selling them under the brands of Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling.
"People in motion."
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"Over the past 100 years, GM has been a leader in the global automotive industry. And the next 100 years will be no different. GM is committed to leading the industry in alternative fuel propulsion." "GMs vision is to be the world leader in transportation products and related services. We will earn our customers enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation of GM people. "Over the past 100 years, GM has been a leader in the global automotive industry. And the next 100 years will be no different. GM is committed to leading the industry in alternative fuel propulsion."
The major competitors of General Motors are domestic companies like Damiler Chrysler & Ford Motor and foreign companies like Toyota Motor & Honda Motor.
o f v eh icle for customers . Toyota has traditionally also been the leader in Total Quality Management or TQM. By using the Kaizen theory of continuous improvement, Japan caught up the U.S. auto makers during the 1980s.
Increase General Motors U.S. market share to 33% Improve customer satisfaction as evidenced by points of market share, not
fractions Each year GM spends billions in advertising and incentives in the name of marketing. Yet there exist far less expensive and far more productive methods of acquiring and retaining customers. This plan calls for no capital investment and offers the opportunity for large reductions in marketing expense. STRATEGY:
Implement both innovative and proven marketing techniques. Raise market share 1 percentage point in each of five key areas Remake our corporate image as a leader by acting rather than re-acting. Change focus of advertising from distress to inspirational.
Loss of market share experiences over the past two decades is due to the demised image of GM in the marketplace. The five key areas contain specific steps for the new image.
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STRUCTURE: The plan will address issues and offer solutions regarding:
Our Customers Our Dealers Our Salespeople Our Employees Our Retirees
2. Global Experience
As ex plained above even w ith GM' s recent declines they still have the mark et sh ar e an d the experience to bounce back. They have been a worldwide company for nearly a century now and have established themselves as the global leader for most of them. If you recall I mentioned above that a current opportunity for GM is to expand globally and as we can see they already have the experience to do so. It is just a matter of the correct planning and proper implementation of those plans that will decided whether or not GM's goals are achieved.
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Weaknesses
1. Behind on Alternative Energy Movement
This is GM's biggest weakness. The alternative energy/hybrid trend has begun to take place in the automotive industry and GM has been one step behind the competition in terms of alternative energy vehicles. This has led to many problems including loss of market share and a decrease in company profit. In order for any automotive company to be successful from this point forward they must be Hybrid friendly and fuel efficient.
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3. Stagnant Profitability Looking at GM's profit we see that they are certainly struggling with respect to the size of their company. Their profit margin was about 1.5% and the ROE has dramatically decreased over the recent years dropping to 10% in 2004. This is a situation that shareholders will not be pleased with.
Opportunities
1. Alternative Energy Movement
It is obvious that GM was behind its competition with regards to the research and development of hybrid vehicles. However hybrid technology is still very much new giving GM the opportunity to once again become the automotive industry's leader in innovation and technology.
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2. Continuing to Expand Globally. Recently GM saw an increase in the Chinese automotive market, which proves their needs to be more emphasis put on foreign markets. If GM can infiltrate these markets and successfully grow along with their continuing focus on the US market they will be headed in a positive direction.
Threats
1. Rising Fuel Prices
With GM being a large producer in both trucks and SUV's, sales have drastically decreased due to the lack of fuel efficiency. The rise in fuel prices has played a significant role in creating the opportunity for development of both hybrid and more fuel efficient vehicles. As you will find with most threats, an equal opportunity will usually emerge as is the case here with GM's opportunity mentioned above.
2. Growth of Competitors
GM no longer has the luxury of being the known leader in the automotive industry and faces the reality that they are in serious trouble. As I mentioned earlier Toyota took the first step in the direction of hybrid technology and has since drastically grown and become the questionable automotive frontrunner to start the 21st century.
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3. Pension Payouts
Part of this threat is its own doing and the other is simply unavoidable. GM is responsible for providing generous pension benefits to its employees, who at the time seemed like a great idea, however they are now experiencing problems as more and more people begin to collect.
the companies make cars, trucks or SUVs. The competitors are compared to one another constantly. In recent years there has been significant market share variation, another indication of rivalry and its very strong threat to profits.
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Five-Force Analysis
FORCE Internal Rivalry Entry Substitutes and Complements Buyer Power Supplier Power THREAT TO PROFIT Strong Weak Weak to Moderate Weak Strong
Core Competence
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The core competence of General Motors is innovation. This is the driving force behind its $190 above turnover. General Motors has been utilizing innovation in service ad technology to secure itself a dominant position in the automobile industry, since 1908. In 1911, it conceptualized, engineered and commercialized the self-starter engine for the first time. Then in 1926, its product Cadillac was the pioneer in devising a nationwide service strategy. In 1996 General Motors introduced On Star satellite technology which allows equipped vehicles to be tracked in case of an emergency or theft and allows the passengers to communicate with On Star personnel. Other new car concepts include mini cars such as Chevy Aveo. However in the case of hybrid vehicles, General Motors was unable to keep up to the pace of the market demand.
Financial Results
Based on the GMs consolidate net sales and revenue, it shown that General Motor Corporation revenue has been falling to $ 192.6 billion in 2007 from 193.5 billion in 2004. GM incurred a consolidated net loss in 2007 of $ 10.6 billion, compared to net income of $ 2.8 billion in 2004.In the last 1990s, GM had regained market share up $ 80 a share. In 2000, the interest went up by the Federal Reserve to quell the stock market and a severe stock market decline following the September 11, 2001 attacks. Due to this factor, it affected a pension and benefit crisis at General motors and many other American companies. The current stock market price of General Motors are falling between $28- $29 per share. It has been falling down gradually in the past six years. General Motors North America market share in 2007 fell to 25.5% compared to 26.7 in 2004.Decreased in market share also due to sales declines in segment where GM has high volume suchas large sport utilities, mid-sized utilities, and mid-sized cars. The unfavorable results of GMs consolidate net loss in 2007 were driven primarily by losses at GMNA due largely to unfavorable volume and product mix.
Suggested Strategies
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Below is a list of possible strategies General Motors could use to redirect profits and be able to maintain survival for the future. 1. Market Development 2. Market Penetration 3. Product Development 4. Restructuring 5. Retrenchment 6. Liquidation
Implementations:
Recommended strategies for General Motors would start with product development then market development, liquidation, and restructuring. Reasons for product development being at the top of priorities is that GM has to create a type of Hybrid vehicle that will allow it to keep up with the pace of the competitive environment, but must be a product that stands out from the crowd at the same time. Prime example of their idea for a Hybrid SUV, it fits the GM profile with maintaining the SUV portion, but allows the firm to stay with trend patterns.GM must also reevaluate the market they are trying to approach, because for so long they have continued with a tradition outlook for automobiles, but now that times are changing their original target market is not looking for what they once were. General Motors needs to take a step back and take look at how they want to position themselves and towards what market since what they have been doing is no longer in favor for the company. An example of what GM could possibly do is producing a futuristic vehicle, which has been heard in rumors from Toyota about their next plan of action. If General Motors could provide a "futuristic" vehicle before Toyota has the chance to hit the market with theirs GM would be a step ahead of the competition. Liquidation is important to GM because their assets are a lot higher than revenues, and if GM could turn assets into cash then there would be more readily available funds and then GM would not have to depend some much on their U.S. sales, which only include 2/3 of that market and their financing tactic wouldn't be as much of a risk. Liquidation would clearly help out the financial parts of the organization. Last but not least is restructuring, which General Motors most desperately needs to review
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possibilities. The company has taken a large hit in recent years and needs to find a way back to the top. This is only going to be achieved if something drastic is changed. Restructuring the product development pace would be a start as well as cutting back on employees because the company is growing in size but not in profit, which causes a red flag for GM. The company needs to be re-evaluated in many ways, but GM has been strong for many years that it is very possible for the company to come above these issues.
Evaluation:
The biggest thing for General Motors is to develop a Hybrid vehicle that will maintain the pace of the competition for the firm as well as one that will stand out from the crowd to make the product new and exciting. Creating a Hybrid SUV is a brilliant idea and if GM can pull that off by the end of 2007 the future could look very bright for them. The company has a huge background proving that they can maintain being number one, it's just a matter of product development being maintained and refocusing products to the correct target markets.
3.18 Consolation:
A vision and mission is not only for investors and for lenders but it also helps you to achieve your business goals in the best possible way. Writing the good vision and mission statement is not an easy task. Make sure that your vision and mission statements must be realistic and relevant to your business. Try to make it passionate and inspiring. For example, the mission statement of the famous brand NIKE is: CRUSH REEBOK. The mission and vision statement must be similar to your competitors. On the other hand, the right organizational structure can play an important role in an organization's evolution. By analyzing all mission, vision, goal, objective, strategy and organization structure of General Motors, we can say that, these are important in their success in automotive industry.
References:
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1. www.slideshare.net
2. www.gm.com 3. www.wikipedia.org
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