organizations & community corporate and community chapter 4 lecture 2 what is the purpose of...

ORGANIZATIONS & COMMUNITY

CORPORATE and COMMUNITY

Chapter 4 Lecture 2

What is the purpose of corporations?

What activities do they then pursue in communities?


CORPORATE and COMMUNITY

COMMUNITY BEGINS WITH CORPORATIONS KNOWING THEIR PURPOSE, THEIR MISSION

AND WITH PEOPLE WHO KNOW THEIR PURPOSE/MISSION IN LIFE


There are 5 levels of Organizational Purpose

Enterprise Strategy. Why do we exist as an organization? Corporate Strategy. What businesses should we be in now

and in the future? Business Strategy. How shall we position ourselves in the

industries and businesses where we choose to operate? Operational Strategy. How shall we coordinate among

processes, people, and structures to meet enterprise, corporate, and business level strategies?

Individual Strategy. What must each individual do daily at work to meet organizational goals consistent with other levels of strategy?


Compare these Statements of Enterprise Strategy

W.T. Gore and Associates: the objective of the enterprise is to make money and to have fun doing so.

Citibank (before Citigroup merger): to provide financial services every place in the world where it is legal, moral, and on which we can make a profit.

Shiseido: to be the Global No. 1 cosmetic firm as measured by the quality of its people and the evaluation others assign to all aspects of Shiseido.

Cargill: we will be the best in improving the standard of living of the 5+ billion people in the world.


Enterprise Strategy/Purpose

usually is articulated by top management often is vague or abstract can change over time, e.g.,

• Boeing 1990 Mission: To be the number one aerospace company in the world and among the premier industrial concerns of quality, profitability, and growth

• Boeing Vision 2016: People working together as one global company for aerospace leadership

informs all other strategy levels


Corporate Level Strategy Depends on Enterprise

Strategy/Purpose Corporate strategy defines which businesses to be in now

and into the future. Corporate strategy is reflected in which businesses the

organization buys, sells, acquires, develops, etc. Corporate strategy is a view of the overall corporate

portfolio of businesses.


Business Strategies are Industry Specific

typically focus on • a) focal product or service,

• b) primary constituency served,

• c) distinctive competence or competitive advantage of the business

may be articulated for the business or for a single subunit, e.g., commercial airlines


Decisions About Enterprise, Corporate, Business and Operational Strategies

Define operational objectives, e.g., which people, processes, and

structures are needed to satisfy these objectives


Decisions About Enterprise, Corporate,

Business and Operational Strategies Define

individual objectives, job assignments, employee activities


Trace This Through One Organization

Time Warner Inc has been described as a company where “we are in the business to make money”

Acquired music and movie divisions that could make them most money

within businesses, competed with a “bare-knuckle business style”

resulting in an internal hotbed of strife and turf wars where heads of the movie division and the music division

slugged it out for control of the recorded-music business


Since 1997, Time Warner’s Chairman has

Articulated a New Vision:

EMPHASIZING core values and guiding principles including diversity, integrity and respect

WHY? because Levin believes that only companies with clearly articulated values will prosper and survive in the increasingly hectic, complex digital age


Video: Making Globalization Succeed

be looking for vision/statement of values and how these values are embedded in people, processes,

and structures for Levi, Motorola, and Sony


Argus ComputersIndia

As you watch this, be looking for these points:

what is the founder's purpose?

how are people developed?

how is the organization structured?

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