Risk Management and Strategic Planning

Unit 2 Mission and

Purpose

Reading

Book Ch

Tribe, J, (2010) Strategy for Tourism, Goodfellow Publishers, Oxford.

2

Capon, C. (2008) Understanding Strategic Management, Prentice Hall: Hemel Hempstead.

5

Tribe, J. (2005) The Economics of Recreation, Leisure and Tourism, Butterworth Heinemann, Oxford.

-

Johnson, G., Scholes, K., and Whittington, R. (2008) Exploring Corporate Strategy, Prentice Hall: Hemel Hempstead.

4

Objectives

After studying this unit and related materials you should be able to understand:vision, mission and objectivesstakeholders and stakeholder power

and critically evaluate, explain and apply the above concepts.

Discussion Point

What is an organisations Mission?What are stakeholders and why are

they important?

Case Study 2: British Airports Authority

Case Study 2: British Airports Authority BAA’s vision statement for Heathrow airport is

to “Become Europe’s hub of choice by making every journey better”

Its strategic intents to achieve this vision as follows: Make Heathrow the preferred choice for passengers Improve airport operations every day Succeed through airline successRun our airport responsibly, safely and securelyFocus people and teams on service and results Deliver the business planTransform the airportWin support for our airport vision

Aims, Missions and ObjectivesAims and MissionsMany organisations work to a mission

statement (David, 1989). A mission statement is a concise

expression of what the organisation is trying to achieve and explains what it is in business for

Kenya Wildlife Service

TUI Travel Strategic Objectives TUI Travel’s primary strategic objectives are:

● to be one of the world’s leading leisure travel groups by providing customers with a wide choice of products with the flexibility to meet their changing needs;

● to deliver earnings growth and margin expansion through the combination of organic development and selected acquisitions;

● to deliver cost synergies estimated to be at least £100 million (e146 million) per annum on an annualised basis within three years of Completion;

● to maintain a lean and efficient business model; and

● to maximise shareholder value.

Mission contd.

A useful mission statement should have the following characteristics:It should be succinctIt should be a future oriented statement It should be an umbrella statement which

can cover more detailed objectivesIt should be realistic and achievableIt should describe the main aims of the

organisation

Objectives

Objectives spell out the goals that have to be achieved to realise a mission.

Thus objectives set out in more detail how a mission is to be achieved.

Framing of objectives and missions Closed objectives should conform to SMART

principles, that is they should be:specificmeasurableagreed with those who must attain themrealistic, and,time-constrained

Open statements are written in more qualitative terms. Missions are generally written as open statements

and targets such as "the most successful" are not measurable without further definition.

Mission Types and Mission Agenda Missions may include

some of the following aspects

Maximising profits Corporate success Customer satisfaction Employee welfare Environmental sensitivity Product safety Employment policy Community activity Ethical considerations Benefits to society Political considerations

Stakeholders

Stakeholder analysis (Friedman et al., 2002) is a useful way of identifying the variety of different forces that act on an organisation's mission.

The term stakeholder refers to a person or grouping with an interest in the operation of a particular organisation.

Stakeholder Mapping: BAA

Stakeholder Conflict: BAA

Stakeholder Power

Interest alone is insufficient to explain the relative influence of stakeholder groups on mission.

We need to add another dimension - that of stakeholder power - to get the full picture of stakeholder influence (Mendelow 1991).

Competing stakeholder groupings for BAA

Risk Management and Strategic Planning

Unit 2 Mission and

Purpose The End