Introduction
Last week on our Problem based learning class we approached the new topic by reading a short article about Fujifilm and the company´s development widening its focus globally and diversifying with healthcare and electronics operations. CEO Shigetaka Komori says that Fujifilm couldn’t have maintained its revenue if it only concentrated on digital imaging. Then we started thinking the subject by brainstorming and ended up to the learning objectives where we are getting deeper in our blogs.
Why are mission, vision and strategy so important as facts to understand when we think about company´s future?
Understanding the terms or mission, vision and strategy are crucial when we are thinking about company´s goal. Problem on these days is, that companies maybe use trendy and confusing language and management and employees have misunderstandings and confuse about the terminology of mission, vision and strategy. (Miller, 2014) Ideas of these terms in the company might overlap easily. If the employees don´t know the difference of these terms, company can face difficulties to reach the goals. (Arnott, 2015)
Mission of any organization should be a short statement and answer to the question “What do we do”. Every company should have a mission about who are they and what do they value. The mission statement can change time to time, but it should always core back to company´s values and vision. (Arnott 2015).
Vision of organization should be an answer to the question, “What do we want to become”. Vision is the function that gives the understanding to the people in the company, what are they trying to achieve. (Arnott 2015) Vision statement shouldn’t change because it´s the foundation of the company, what does the company wants to be in the future, not what it is right now. While the company vision is looking to the future, company mission is combined with forward thinking present goals. (Miller 2014)
A good company strategy aligns with vision and mission. It´s an answer to the question, how will the company achieve the vision. (Arnott 2015) Strategy should be a long-term plan how the long- and short-term goals will be achieved. Some companies have also additional steps in this point, they make a list of objectives or goals and use them as a basis to company strategy. (Miller 2014)
I can relate to these articles easily, especially employees should know better the facts of mission, vision and the strategy in the company. I think many, especially big and global companies have problems with delivering this information. Employees don´t know clearly what they are working for and how do they reach the demanded goal. Management level should help the employees to understand these terms and the facts, what are we doing, what do we want to be and how we will reach it, in better way. I think these facts should be introduced already in an interview and later have worker meetings individually with employee and as a group regularly. And everyone should get the same information in the company.
How does strategical thinking lead company to success?
Some managers might be afraid of strategical thinking and be confused about its meaning, they might think it´s too tactical and task oriented. Strategic thinking is a process of thinking and planning and doing the work that leads the company toward preferred future. It´s a systematic mix of innovation and strategic and operational planning. Strategic thinking has been considered one the hardest parts in leadership. It’s very important to understand strategic thinking as a process to success. It´s important for the company that leaders understand the value of strategical thinking as a way for the long-term growth. (McCulloch, 2019)
In an article about the study of Strategic thinking and organizational success (Salamzadeh&Vahidi, 2018) the research was made about the link between strategic thinking on the management level and its effect on organizational success. The result of this study was, that there is a positive correlation between strategical thinking and organizational success. If managers lacked in strategical thinking, the result could be considerably decreasing success. It was also recommended that the managers would understand the importance of strategical thinking and empower it also among the staff, by enhancing participative work morale, creativity, entrepreneurial mindset, synergic cooperation and healthy competition among the staff.
Molloy (2017) says that strategic thinking is not important only on management level, but also on employee level, because workplaces are becoming less hierarchical. In strategic thinking, employees in all levels and functions scan new ways to contribute to the company´s success. In changing work life all the employees should keep eye on the future, not just concentrate on the present and become aware of the bigger context they are operating with. I can see, that this would be ideal for the all workplaces, because employee level might have lots of information, that management level needs for the future decisions.
What kind of challenges and opportunities there are in growth of the company?
Expansion, building the industry reputation, employing more staff and growing profit are all good developments in the company, but they might also present new challenges. There are challenges that every growing business can face.
With finding and hiring the right people, all this starts with choosing the right management. Also, the communication, when the business grows, can be a challenge. There might be more management layers needed and therefore the communication can become harder. When thinking about management and employees, also the developing business culture can be a challenge and an opportunity. (Kimmorley, 2015)
Kimmorley (2015) says that understanding the market of the company and keeping updated can be a challenge. Company must understand who the most important competitors are and what are they offering. Company should build a right kind of relationship with a customer and the company, this can be difficult, because sometimes this can turn against the customer, because companies might fall in a trap of treating the customer like a challenge. Challenge can be also the dealing with customer complaints. Other problems can be managing the cash flow. Spending money on the growth period should be careful and cash management should be kept disciplined.
References
Arnott, R. 2015. Mission, Vision and Strategy – and the importance for the Executive Assistant. URL:http://executivesecretary.com/mission-vision-and-strategy-and-the-importance-for-the-executive-pa/
Kimmorley, S. 2015. 10 common challenges in growing any business. URL:https://www.businessinsider.com.au/in-good-company-10-common-challenges-in-growing-any-business-and-how-to-tackle-them-2015-11
McCullogh, K. 2019. The value of strategic thinking and planning: A more robust to the future. 31.3.2019. URL:https://www.rhythmsystems.com/blog/the-value-of-strategic-thinking-a-more-robust-annual-plan
Miller, B.2014. Strategy, Mission, and Vision: How Do They All Fit Together? HR Daily Advisor. URL:https://hrdailyadvisor.blr.com/2014/09/09/strategy-mission-and-vision-how-do-they-all-fit-together/
Molloy, J. 2017. Strategic thinking – Because good ideas come from everywhere. Harvard Business Publishing. URL: https://www.harvardbusiness.org/strategic-thinking-because-good-ideas-can-come-from-anywhere/
Salazadeh & Vahidi. 2018. Strategic thinking and organizational success: Perceptions from management graduates and students. Global Business and Management Research: An International Journal. file:///C:/Users/ekono/Downloads/V10N4_12.pdf
International Business study blog / Anna 