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Vision and Mission

Statement

Dosen : Drs. HA. ROMADLON, MM, CTP


Fakultas Ekonomi dan Bisnis
School Economics and Business Vision Statement
Telkom University
Vision statement should answer the basic question What do we want to become ?
It should be : short, preferably one sentence, as many managers as possible should have input into
developing the statement.

Clear vision provide the foundation for developing a comprehensive mission


statement
Vision Statement Examples :
General Motor : to be the world leader in transportation product and related services

TELKOM : to become a leading INFOCOM player in the region

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Fakultas Ekonomi dan Bisnis
School Economics and Business Mission Statement
Telkom University

Mission statement is declaration of an organizations reason for being

Peter Drucker says that asking the question What is our business ? is synonymous
with asking the question What is our mission ?

A clear mission statement is essential for effectively establishing objective and


formulating strategies.
Sometimes called a creed statement, a statement of : purpose, philosophy, belief, business principle,
defining our business,

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Fakultas Ekonomi dan Bisnis
School Economics and Business Notable Quotes
Telkom University

A business is not defined by its name, statutes, or articles of incorporation. It is


defined by the business mission. Only a clear definition of the mission and
purpose of the organization makes possible clear and realistic business objectives
(Peter Drucker)

A corporate vision can focus, direct, motivate, unify, and even excite a business
into superior performance. The job of strategist is to identify and project a clear
vision (John Keane)

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Fakultas Ekonomi dan Bisnis
School Economics and Business Mission Statement Components
Telkom University

1. Customers ; who are the firms customer ?


2. Product or service; what are the firms major product or service ?
3. Markets; geographically where does the firm compete ?
4. Technology; Is the firms technologically current ?
5. Concern for survival, growth and profitability; Is the firm committed to growth and financial
soundness ?
6. Philosophy; What are the basic belief, values, aspiration, and ethical priorities of the firm ?
7. Self-concept; What is the firms distinctive competence or major competitive advantage ?
8. Concern of public image; Is the firm responsive to social, community and environmental
concern ?
9. Concern for employee; Are employee a valuable asset of the firm?

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Fakultas Ekonomi dan Bisnis
School Economics and Business Mission Statement Examples
Telkom University
Dell Inc. is to be the most successful computer company (2) in the
world (3) at delivering the best customer experience in markets we
serve (1). In doing so, Dell will meet customer expectation of
highest quality, leading technology (4); competitive pricing;
individual and company accountability (6); best-in-class service and
support (7); flexible customization capability (7); superior corporate
citizenship (8); financial stability (5).

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Fakultas Ekonomi dan Bisnis
School Economics and Business Formulating Mission
Telkom University

Base on Fundamental Beliefs :


1. The product and service can provides benefits at least equal to its price
2. The product and service can satisfy customers
3. The technologies will provide a cost quality competitive price
4. With hard work the business can grow and be profitable
5. The management philosophy will result in favorable public image
6. The entrepreneur self concept can be communicated to and adopted by employees and
stockholders

Newest Trends in Mission Components : Customers and Quality

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Fakultas Ekonomi dan Bisnis
School Economics and Business Inputs to the Development of Mission
Telkom University

Inside Stakeholders Outside Stakeholders

Customers
Suppliers
Executive Officer Companys Mission Creditors
BOD
Governments
Stockholders
Unions
Employees
Competitors
General Public

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Fakultas Ekonomi dan Bisnis
School Economics and Business Characteristics of a Mission Statement
Telkom University

Declaration of Attitude, A customer orientation, Declaration of social


policy
Broad in scope
Less than 250 words in length
Inspiring
Identify the utility of firms products
Reveal that the firm is socially responsible
Reveal that the firm is environmentally responsible
Include nine components ( customer .. employee)
Enduring

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Fakultas Ekonomi dan Bisnis The Need for an Explicit Mission (Importance of
School Economics and Business
Vision and Mission Statement)
Telkom University

1. Ensure unanimity of purpose the organization


2. Provide Basis motivating
3. Develop basis, or standard
4. Establish general tone or organization climate
5. To serve focal point to identify purpose and direction
6. Translate objective and goals to work structure
7. Translate purpose & goals in such a way cost, time and performance parameter
can be assessed.

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Fakultas Ekonomi dan Bisnis
School Economics and Business Corporate Social Responsibility
Telkom University

The idea that business has a duty to serve society as well as the financial interest of stockholders.

Three principal reasons company should be concern about the CSR :


1. Companys right to exist depend on its responsiveness to the external environment.
2. Government threaten increased regulation if business doesnt evolve to meet changing social standard.
3. A responsive corporate social policy may enhance a firms long-term viability.

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Fakultas Ekonomi dan Bisnis
School Economics and Business CSRs effect on the Mission
Telkom University

The mission statement not only identify what product and service a company produce it, and what market it
serves, it also embodies what the company believes.
Mission statement recognize the legitimate claims of external stakeholders include creditors, customers,
suppliers, government, unions, local community and element of the general public.
Some company are in their approach to CSR, others are reactive.
Social audit attempts to measure a companys actual social performance against the social objective.

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External Environment Analysis
(External Factor Assessment)

Dosen : Drs. HA. ROMADLON, MM, CTP


Fakultas Ekonomi dan Bisnis
School Economics and Business External Environment Analysis

Sometimes is called Environmental Scanning, External Audit, or Industry Analysis,


reveal key opportunity and threats confronting an organization so that managers
can formulate strategies to take advantage and avoids or reduce the impact of
threats.

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Fakultas Ekonomi dan Bisnis
School Economics and Business Companys Environment
Telkom University

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Operating Env Industry Env Remote / Macro


Competitor Global & Domestic Env
The FIRM Creditor Entry Barriers Economic
Customers Supplier Power Social
Labor Substitute Political
Supplier Competitive Rivalry Technological
Ecological

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Fakultas Ekonomi dan Bisnis
School Economics and Business Notable Quotes
Telkom University

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The opportunities and threats existing in any situation always exceed the resources needed to exploit
the opportunities or avoid the threats. Thus, strategy is essentially a problem of allocating
resources. If strategy is to be successful, it must allocate superior resource against a decisive
opportunity. (William Cohen)

If you are not faster then your competitor, you are in a tenuous position, and if you are only half as
fast, you are terminal.
(George Salk)

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Fakultas Ekonomi dan Bisnis
School Economics and Business Thinking Strategically
Telkom University
Thinking strategically about a Companys Industry and Competitive Environment is using tools to
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get clear answer to seven question :
1. What are the industrys strategy-shaping economic features ?
2. What kind of competitive forces are industry members facing, and how strong is each force ?
3. What forces are driving change in the industry, and what impact will these changes have on competitive
intensity and industry profitability ?
4. What market position do industry rivals occupy-who is strongly positioned and who is not ?
5. What strategic moves are rivals likely to make next ?
6. What are the key factors for future competitive success ?
7. Does the outlook for the industry present the company with sufficiently attractive prospect for
profitability ?

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Economic Forces
Key Economic Variable to be Monitored

Availability of credit Import / export factors


Level of disposable income Demand shift for different categories of goods and
Interest rate services
Inflation rate Income different by region and consumer groups
Money market rate Price fluctuation
Government budget Export of labor and capital
GDP trend Monetary policies
Consumption [pattern Fiscal policies
Unemployment trend Tax rates
Worker productivity level European Economic Community policies
Value of the dollar in world market etc
Stock market trend
Foreign country economic condition
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Economic Forces (cont)

Advantage and Disadvantage of a Weak Dollar for US Firms

Advantage Disadvantage

Lead to more export Can lead to inflation


Lead to lower import Can cause raise in oil prices
Make US goods cheaper to foreign Can weaken US government
country
Stimulate worldwide recession Make it unattractive for Americans to travel
globally
Forces foreign firms to raise price
Can contribute to fall in stock prices in long
Reduce the US trade deficit
run
Encourages firms to globalize
Encourages foreigner to visit the United
States
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Key Social, Cultural, Demographic, and Environmental Variables.
Childbearing rates Location of retailing, manufacturing, and
Number of special interest group service business.
Number of marriage Attitude toward business
Number of divorces Lifestyle
Number of birth Traffic Congestion
Number of death Inner-city environment
Immigration and Emigration rates Average disposable income
Social security program Trust in government
Life expectancy rates Attitude toward government
Per capita income Attitude toward work
etc

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Political, Government, and Legal Variables
Government regulation or deregulation Change in patent law
Change in tax law Environmental protection law
Special tariffs Level of defense expenditure
Political action committee Legislation on equal employment
Voter participation rates Level of government subsidies
Number, severity and location of government Antitrust legislation
protests
Number of patent

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Technological Forces

Give the example of the impact of Wireless Technology in certain industry (five industries)

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Fakultas Ekonomi dan Bisnis
School Economics and Business Tugas-2
Telkom University

1. Lakukan identifikasi visi dari perusahaan yang menjadi tugas kelompok anda, apakah
visi perusahaan tersebut telah memenuhi persyaratan atau kuslifikasi dari Vision
Statement.
2. Lakukan identifikasi misi dari perusahaan tersebut, lakukan identifikasi apakah telah
memenuhi 9 komponen mission statement ? Identifikasi satu per satu.
3. Lakukan audit faktor2 Eksternal apa saja yang berpengaruh terhadap perusahaan
tersebut jelaskan satu per satu.
4. Pelaajari buku wajib chapter 3 The External Assessment lanjutan untuk didiskusikan
pada pertemuan minggu depan.

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