Developments in Business Simulation and Experiential Learning Volume AN by cantaloop


									    Developments in Business Simulation and Experiential Learning, Volume 25, 1998

                                Jim L. Grimm, Illinois State University
                              James B. Spalding, Jr., Bellarmine College

                  ABSTRACT                           satisfy basic needs of target markets. The
                                                     organization’s management is accordingly guided
The purpose of this experiential activity is to      toward objectives and strategies which are
provide students in beginning or more advanced       consistent with and serve the stated mission. To
courses, or other business-learning participants,    develop a mission statement, or to evaluate an
with a better understanding of the role of an        existing one, managers should seek appropriate
effective mission statement in formulating           answers to such guideline questions as the
competitive strategy. More specifically, it is       following:
designed to enable the participants to exploit the
opportunity to develop and evaluate mission          Does the mission statement:
statements.                                          • depict accurately the organization that leaders
                                                       and employees are building?
               INTRODUCTION                          • enable an employee to define his or her job in
                                                       the organization?
Recently renewed focus on developing and             • provide a direction for the future of the
implementing effective competitive strategies has      organization without limiting it?
highlighted the importance of the organization’s     • define the business domain?
mission statement. It is increasingly recognized
that the mission statement should show the           Equally importantly, the business domain of an
organization’ s true function; that it provide       organization, or of one or more of its component
direction and boundaries for growth; and that it     strategic business units (SBUs), is defined by
give a basis for market definition and               identifying:
segmentation, as well as for resources allocation.
To assure that managers are directed toward being    •   the basic consumer needs to be satisfied;
market-driven, rather than product-driven or         •   the potential customer groups to be served;
otherwise more internally misdirected, primary       •   the core business or core product to be offered;
importance should be given in the mission            •   the distribution, promotion, and technology
statement to the basic consumer need to be               strategies necessary to satisfy those needs.
fulfilled, the core market to be targeted and
served, the core business/product to be provided,    Assignment: In light of these mission statement
and the distribution, promotion, and technology      guidelines and business domain considerations,
strategies essential to satisfying those needs.      evaluate the two mission statements in Scenario 1,
                                                     then complete the assignment through all three
An activity is offered below for consideration in    scenarios.
teaching topics related to the development and
evaluation of mission statements.                    Scenario 1

EXPERIENTIAL ACTIVITY: DEVELOPING                    Consider the mission statements of Jones
& EVALUATING MISSION STATEMENTS                      Environmental Services and Smith Earthsavers,
                                                     Inc.[fictitious names], two firms providing
An organization’s mission defines its purpose by     services to companies with environmental
specifying what it does or can do, in order to       pollution problems.

     Developments in Business Simulation and Experiential Learning, Volume 25, 1998

Mission of Jones Environmental Services                 To satisfy
                                                                                  [Basic Consumer Need]
Jones Environmental Services exists to solve
pollution-related problems of organizations in any      of
market through state-of-the-art technology.                                         [Market to be Served]

Mission of Smith Earthsavers, Inc.                      by providing
                                                                         [Core Business or Core Product]
Smith Earthsavers, Inc. is driven by a
commitment to total quality management and a set        through
of distinctive competencies. Smith Earthsavers,                       [Distribution/Promotion/technology]
Inc. will:

• Delight our customers by delivering excellent         Scenario 3
  products and service.
• Commercialize innovative technologies to              GUST, Inc. is a small firm in Louisville, KY that
  attain an industry leadership position.               specializes in removing underground gasoline
• Empower employees to achieve work                     storage tanks. GUST has been providing this
  excellence, to commit themselves to customer          service for the last ten years. A recent law in
  satisfaction, to contribute to the welfare of their   Kentucky requires removal of all underground
  communities, to grow personally, and to be            gasoline storage tanks and any surrounding
  rewarded for their contributions.                     contaminated soil at sites of former gas stations.
• Exemplify the highest standards of ethical            This legislation also requires that existing gas
  behavior, environmental responsibility, health,       retail outlets must repair/remove all existing
  and safety.                                           underground storage tanks that leak or have
• Generate sustainable, superior rewards for our        leaked and remove any soil contaminated by leaks
  investors.                                            or spillage. Firms which specialize in such
                                                        removal must meet special rules and regulations
First, which of the mission statements do you           in Kentucky to be approved to continue offering
prefer? Second, explain why you preferred this          removal of underground gasoline storage tanks
mission. Then, consult the above-mentioned              and the surrounding contaminated soil. Write a
guidelines and evaluate each mission statement          mission statement that defines Gust Inc.’s
stating explicitly how well each mission statement      business domain, using Scenario 2’s format.
defines the business domain of the organization.
                                                                     INSTRUCTOR’S NOTES
Scenario 2
                                                                       Available on request.
You are a strategic planning consultant to a firm
that provides services to companies with                      REFERENCES CITED IN PAPER
environmental pollution problems. You begin to
develop a mission statement to define the business                     Available on request.
domain, conforming to the above-mentioned
evaluation guidelines. The format that follows
will assist you in defining the firm’s business
domain. You may need to expand this format to
assimilate ideas related to the other evaluation


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