1. Week 2 Vision mission values and goals 
2. During this week you will learn how strategy may be deeply influenced by the core features of a company and its values. You will be introduced to the concepts of vision and mission and of values and goals. You will learn how to evaluate the vision and mission statements of organisations and their congruency with their values. 
3. During this week you will also see how case studies are going to be used throughout the module: there will be a teaching case study and an application case study to help you learn how to apply theoretical frameworks and give you the opportunity to practise applying them. 
4. Activity planner 
5. This week you should use your study time to work through the teaching material and complete the following activities. 
6. Activity title  Description  Timing 
7. 2.1: Exploring vision statements Compare the vision statements of three organisations. 20 minutes 
8. 2.2: Interpreting a mission statement Analyse Google’s mission statement. 10 minutes 
9. 2.3: Analysing mission and vision statements Analyse Boeing’s mission and vision. 30 minutes 
10. 2.4: Boeing’s and Airbus’s values Compare the values of Boeing and Airbus to identify similarities and differences. 20 minutes 
11. 2.5: Boeing’s goals Summarise Boeing’s goals for 2025. 5 minutes 
12. 2.6: Becoming familiar with Lamborghini Identify the key events in Lamborghini’s history using information from two videos and its website. 30 minutes 
13. 2.7: Lamborghini’s vision mission values and goals Use videos and an article to identify Lamborghini’s vision mission values and goals. 50 minutes 
14. 2.8: The history of Starling Bank Identify key moments in the history of Starling Bank using information from a video. 10 minutes 
15. 2.9: Starling Bank’s vision mission values and goals Identify Starling Bank’s vision mission values and goals using information from videos. 20 minutes 
16. 2.10: Exploring vision mission values and goals Compare the vision mission values and goals of Starling Bank and another bank and share your findings on the tutor-group forum. 1 hour 
17. Case studies in B302 
18. Before introducing the topics you will study this week it is important to explain how this module will use examples and case studies. In each block theoretical frameworks definitions and models will be introduced with appropriate examples. Two case studies will also be used throughout the module as represented in Figure 2.1 below. 
19. View larger image 
20. Figure 2.1 Blocks and case studies 
21. Show description Figure 2.1 Blocks and case studies 
22. The teaching case study is Automobili Lamborghini the famous luxury super-sports car manufacturer based in Italy. You will be given the information needed to apply strategic frameworks through for example watching video interviews with managers of Lamborghini. This case study will be used to show you how to apply strategic management models with videos illustrating the step-by-step process of application and the resulting reflection. 
23. Figure 2.1 shows five vertical columns. These are labelled (from left to right as) ‘Block 1: Introduction to strategic management’ ‘Block 2: External and internal analysis’ ‘Block 3: Business strategy’ ‘Block 4: Corporate strategy’ and ‘Block 5: Strategy in action’.
24. There is a horizontal text box cutting across all five columns labelled ‘Examples’. Two additional text boxes are located within the main text box. The upper text box is labelled: ‘Teaching case study: Automobil Lamborghini: Learn how to apply theoretical models and frameworks’. The lower text box is labelled: ‘Applicative case study: Starling Bank: Consolidate learning through direct application of theoretical models and frameworks’. 
25. ANNOTATION: Described image
26. There is also a text box at the foot of column five: ‘Block 5: Strategy in action’. The text box is labelled: ‘Collaborative activity case study: Ooni’.
27. The second case study encourages you to apply what you will learn in the module. This applicative case study is Starling Bank a new bank founded in 2014 in the UK. You will use this case to apply theoretical models and frameworks and you will share and reflect on your work in the tutor-group forum. This particular way of approaching case studies will help to develop your understanding of the topics of strategic management. 
28. Part of the work on the case studies will be done in Word Excel and PowerPoint documents as happens in real companies when it comes to preparing professional documents. You will learn how to structure your analysis and argument to convey a clear and effective message. You will be provided with some templates of the documents and demonstrative examples for the Lamborghini case study and you will work on Starling Bank in a more autonomous and independent fashion. 
29. To work with these documents you need to use Microsoft Office (Word Excel and Power Point). You may have it already in your computer but consider that Microsoft Office 365 is free for OU students. It works on all devices. See the OU’s guidance on setting up and installing Microsoft Office. 
30. 2 Vision 
31. The word ‘vision’ derives from the Latin videre which means ‘to see’. A vision is a picture of a desired future state that an individual or an organisation has foreseen for itself and wishes to achieve. Vision is often defined as a broad concept and its details are not always fully defined. It can also be named an organisation’s ‘strategic intent’ ‘envisioned future’ or ‘aspiration’ (de Wit 2017 p. 54).
32. To formulate a vision organisations typically create a statement an expression of something a declaration or an assertion (OED n.d.). This use of the word ‘statement’ is different from its usage in accounting where you usually find the statement of financial position. 
33. Activity 2.1: Exploring vision statements Timing:Spend approximately 20 minutes on this activity. Read the three examples of vision statements (collected in October 2018) below. 
34. Toyota Toyota will lead the way to the future of mobility enriching lives around the world with the safest and most responsible ways of moving people. Through our commitment to quality constant innovation and respect for the planet we aim to exceed expectations and be rewarded with a smile. (Toyota n.d.)
35. NASA We reach for new heights and reveal the unknown for the benefit of humankind. (NASA 2018) 
36. Alzheimer’s Society UK A world without dementia. (Alzheimer’s Society 2019) 
37. Now compare the vision statements and briefly note the differences between them in the following text box. 
38. Think about their length: what does a long and detailed statement suggest? What are the advantages of a shorter statement? 
39. Consider how they are written: for example are they written with full sentences or short phrases? 
40. Discussion The three statements are formulated very differently. Toyota’s is quite long and precise whereas Nasa’s is just a sentence and that of the Alzheimer’s Society just four words. 
41. Toyota’s vision focuses on the themes of the future of mobility quality and the engagement of talented and passionate people. NASA’s statement sounds more like an inspiring definition of what the agency has been focused on achieving. The broad ambition of NASA drives its endeavour to advance humanity’s knowledge through space exploration. The vision of the Alzheimer’s Society in the UK – ‘A world without dementia’ – does not contain any verb to indicate any possible form of action but just paints a positive picture of a future in which dementia is not part of anyone’s life. The image of a world without people suffering from Alzheimer’s is evocative and suggests that the charity will dedicate every effort to reach that result. 
42. You could probably argue that Toyota’s vision is more specific because of the clarity of the business: building cars. When the organisational aspiration is broader it is more connected with external elements as you will see in the next section. 
43. Activity 2.1: Exploring vision statements Your response to Question 1
44. You may find that many companies and organisations do not articulate their vision in a clear statement. This does not mean they do not have a vision it could be that they just do not need or prefer not to express it in a formal statement. This may be because the company is still quite young and has not yet defined its vision or because its activity is able to convey the vision without the need to formalise it. Think about a bakery or a family-owned hotel owners and managers may have aspirations but probably do not feel the need to express them formally in a written statement. 
45. 2.1 Elements of a strategic vision 
46. As you have seen in the previous section vision statements can be formulated in differing ways. Nevertheless according to de Wit (2017 pp. 54–5) there are four constitutive components at the heart of a clear vision. 
47. Figure 2.2 features a funnel. Above the funnel there are four circles. These are labelled (in clockwise formation) as: ‘Envisioned contextual environment’ ‘Desired future organisational position’ ‘Time horizon’ and ‘Envisioned industry environment’. There is a vertical single-headed arrow leading from the bottom of the funnel towards a circle labelled ‘Vision’.
48. Figure 2.2 Elements of strategic vision 
49. Show description Figure 2.2 Elements of strategic vision 
50. 1. Envisioned contextual environment The external environment plays a critical role in the future of an organisation. Socio-cultural economic political/regulatory technological legal and environmental factors change over time as you will see in Week 6. Their evolution is not easy to predict but organisations can form some expectations and forecast the direction(s) of change. For instance the growth of population in Africa in the next 20 years could be considered in the vision of an airline aiming to expand internationally. In general the future evolution of factors relevant to the company are envisioned and may become part of the formulation of its vision statement. 
51. 2. Envisioned industry environment External factors can impact the industry or the market of the company or the context in which the organisation operates. New competitors may enter the industry customers may change their preferences or needs for public services may change. For instance low-cost airlines could enter the African market. In educational contexts new subjects related to computer science and foreign languages may need to be taught in schools and universities. In elaborating the vision future trends can be considered and a future state of the industry environment can inform the definition of the vision statement. 
52. 3. Desired future organisational position An organisation describes its future position in the contexts of both the envisioned contextual environment and the envisioned industry environment. You will probably remember that the word ‘position’ was used in Week 1 (see Section 3) to describe how an organisation fits within its environment. A future organisational position could be for instance the achievement of a leadership position in a market such as in continental Europe or entry into new markets to reach a worldwide presence. Some companies state their position in respect of their customers or external stakeholders defining the achievements that could be made through their actions such as the vision of a ‘world without disease’ of Johnson & Johnson (2019). This desired ambition can be articulated in the long-term goals of the organisation. You will work on these later this week in Section 6. 
53. 4. Time horizon In developing a new vision managers define the time span for that vision to be achieved. Time horizons change significantly because of environmental and industry differences and dynamism. You will analyse these aspects in detail in Block 2. Time horizons can span from 3 to 30 years or longer depending also on the values of the organisation. In some cases managers might prefer not to declare a specific time but rather define the vision by linking it to the achievement of an objective (see examples in Activity 2.1). A vision statement may contain one or more of the elements described above. A clear vision provides direction on where the organisation would like to move to. In this sense vision informs strategy and provides information for decision making. 
54. 3 Mission 
55. The word ‘mission’ comes from the Latin mittere which means ‘to send’. A mission is a purpose a driver or a duty able to send people and organisations towards a direction which is the desired future position as expressed in the vision statement (de Wit 2017 p. 51; Johnson et al. 2017 p. 7). In other words a mission is the set of principles that mobilise an organisation: it explains what the organisation is there to do. 
56. The mission of The Open University is to be ‘open to people places methods and ideas’. The OU strives to provide high-quality education offering wide access to anyone without entry requirements and supporting students with disabilities. Moreover the mission is oriented towards giving open access to knowledge through platforms dedicated to free learning such as FutureLearn and OpenLearn. If you are interested you may like to read the OU’s full mission statement. 
57. Another example of a mission statement comes from Procter & Gamble a large American consumer goods production corporation. Its mission is: We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers. As a result consumers will reward us with leadership sales profit and value creation allowing our people our shareholders and the communities in which we live and work to prosper. (Procter & Gamble 2003) 
58. Similar to a vision statement a mission can be defined in several different ways sometimes quite specific and sometimes quite general. Look at Google’s mission: 
59. In the next activity you will reflect on the meaning of a mission statement in order to consider what it can reveal about an organisation. 
60. Activity 2.2: Interpreting a mission statement Timing:Spend approximately 10 minutes on this activity. Sometimes a mission statement can reveal a key aspect about an organisation. Think about the meaning of the word ‘information’ in Google’s mission statement and note down your thoughts in the box below. 
61. Activity 2.2: Interpreting a mission statement Your response to Question 1
62. Discussion The word ‘information’ is used quite broadly in Google’s mission statement. It could be meant to encompass textual sources and images videos and maps. It might also include our preferences as customers concerning the information that Google can generate. It is also worth bearing in mind that the information you give to Google when you use its services is as important to Google as the information it provides to you.