Mission Vision Values - Free Essay Example

Sample details Pages: 5 Words: 1421 Downloads: 1 Date added: 2017/06/26 Category Business Essay Type Narrative essay Did you like this example? Mission, Vision, and Values Paper Strategies for Competitive Advantage Mission, Vision, and Values Paper A mission, vision, and values are an essential part of a company and its success. These contribute to the companys ability to reach its goals and objectives. Once these things have been put into place, the organization can develop a strategic plan to guide them in the decision making process. Company Background- General Motors Corporation General Motors Corporation (GM) was founded in 1908. Based in Detroit, it is the worlds largest automaker, and has been the global industry leader in sales for 76 years (General Motors, 2008a) with the United States being its largest national market, followed by China, Canada, the United Kingdom, and Germany years (General Motors, 2008a). Today, the company employs about 284,000 people worldwide and manufactures cars and trucks in 33 countries. In 2006, the company sold 9.1 million cars and trucks globally under its many brands, which include Buick, Cadillac, Chevrolet, to name a few (General Motors, 2008a). GM has ventured into partnerships with many automobile manufacturers around the world. The company is currently the majority shareholder in GM Daewoo Auto Technology Co. of South Korea (General Motors, 2008a). GM has collaborated with Suzuki Motor Corp. and Isuzu Motors Ltd. of Japan with product, powertrain, and purchasing (General Motors, 2008a). The company has also collaborated with DaimlerChrysler AG, BMW AG of Germany, and Toyota Motor Corp. on advanced technology and ventured in vehicle manufacturing with several automakers, such as Toyota, Suzuki, and Renault SA of France years (General Motors, 2008a). GM currently sells its genuine parts and accessories under many brands including GM Goodwrench, and ACDelco brands (General Motors, 2008a). With all of GMs success in the past, the company is facing challenges during this time of economic hardship. The companys market valu ation has decreased to $5.9 billion and its stock prices are at its lowest in 50 years (Lowenstein, 2008), which is evident with a closing price of $9.69 on July 10, 2008 (Yahoo Finance, 2008a). The skyrocketing price of oil seems to be the immediate cause of GMs problems, decreasing the sale of its sport utility vehicles and trucks (Lowenstein, 2008). The automaker is potentially looking at more layoffs and speculation of a possible sale of Buick and Pontiac (Lowenstein, 2008), however GMs vice president states that Hummer is the only brand the automaker is considering selling at this time (Yahoo Finance, 2008b). Mission/Vision Statement The mission/vision of GM is â€Å"to be the world leader in transportation products and related services† (General Motors, 2008b). Through continuous improvements driven by teamwork, integrity, and innovation, the company has earned its customers trust and enthusiasm. With all the competition and the advancement of hybrid and alternati ve fueled vehicles, GM should look to being a leader of innovation. With this in mind, the mission statement could read GM will become the world leader in quality, innovative, and cost efficient products. The mission is for GM to become the auto industry leader in sales and market share in the global market. Company Values GM has six core values in which employees are to use in conducting daily business practices (General Motors, 2008c). These core values consist of continuous improvement, customer enthusiasm, innovation, teamwork, and individual respect and responsibility (General Motors, 2008c). These values must portray an image to the companys consumers that it values their needs and wants. With this said GM should add customer value and thinking green to its core values. This measure would show the company is focused on achieving high levels of customer satisfaction by providing innovative products that offer customers more choices with alternative fueled vehicles. Thinki ng green will show the company is concerned with doing right by the environment How Mission, Vision, and Values Aid in Reaching Desired End State Mission/Vision In order for GM to achieve its vision, the company understands that many issues must be addressed in order to attain its many goals. In order to become a more sustainable company, GM recognizes the importance of integrating economic, social, and environmental objectives into its daily business objectives and future endeavors. The future success of the company partly depends on technology, innovation, and partnerships (General Motors, 2008b). With technology, GM can efficiently address climate changes and fuel efficiency through its products. By accelerating the development and deployment of new technology, GM is able to improve its existing technology. Innovation provides the company with the tools needed to develop new ways of operating as a company. With increased competition in the global industry, innovation is critical in the future success of the company. In order to continue being responsive to the stakeholders needs and concerns and create a sustainable future, GM understands the importance of continuing to build strong relationships its employees, industries, governments, markets, and communities (General Motors, 2008b). Values GM is based on is six fundamental values.  With these values, the company has adopted and endorsed principles, such as the GM Environmental Principles and the Global Sullivan Principles (General Motors, 2008c). These principles are consistent with the companys values and serve to inform its strategies. The company states, â€Å"These strategies drive our behaviors and actions, which produce the results that matter† (General Motors, 2008c). Components of the Strategic Management Process Needing to be Analyzed Strategic planning involves the decisions and actions needed to formulate and implement plans designed to achieve the companys goal s (Pearce Robinson, 2005). It encompasses long-range planning, with an increased emphasis on environmental forecasting and external considerations in formulating and implementing plans. There are multiple opportunities available to GM to deal with the current trends and threats in the automobile industry. In order to deal with them, the company must clearly identify its strengths and weaknesses. The auto industry as a whole faces issues with the rising fuel costs, as well as political and environmental issues with the rage of going green. As competition increases, there will be an even greater demand for oil. Although GM has a global presence and continues to expand in other markets, the company can reduce more operational costs by eliminating vehicles that are to similar and brands that are not selling. The company can use the savings to invest in further development and production of alternative vehicles that are more fuel-efficient. Strategy Effects on Leadership, Culture, an d Stakeholders There will be numerous affects on the GMs leadership, organizational culture, and stakeholders after implementing the new strategy. Leadership will have to devise an effective method of getting the work done effectively and efficiently to make the new strategy work (Pearce Robinson, 2004). This will entail a plan to organize and educate all staff throughout the organization about accomplishing the mission, roles of leadership, and specific values that will guide the everyday activities. Leadership will also have to assess the competition and address the needs of their customers. In addition, commitment must be gathered amongst the organization and stakeholders to embrace change and implement strategies that allow the organization to be competitive. The stakeholders will face the decisions to accept or reject the new strategy. The organizational culture should be established to provide meaning, direction, and a basis for action (Pearce Robinson, 2004). The organiz ation would benefit if leaders promote and identify key themes and dominant values within the organization to reinforce competitive advantage they seek to maintain and build (Pearce Robinson, 2004). Conclusion GM and the automobile industry as a whole is experiencing tough times, however, there are many opportunities available to GM. The company now has an opportunity to expand market share and once again be the leading automotive manufacturer. The company must look at the trends and threats as new strengths and opportunities by developing and implementing a strategic plan that best positions GM to deal with the threats within the auto industry. References General Motors. (2008a). About GM: Company profile. Retrieved July 10, 2008, from https://www.gm.com General Motors. (2008b). Sustainability and GM: Vision and Strategy. Retrieved July 10, 2008, from https://www.gm.com General Motors. (2008c). 2005/06 corporate responsibility report. Retrieved July 9, 2008, from https://www.gm.com Lowenstein, R. (2008). Siphoning G.M.s future. New York Times, p. A.21. Retrieved July 10, 2008, from ProQuest database. Pearce, J. Robinson, R. (2005). Strategic management: Formulation, Implementation, and control (9th ed.).[University of Phoenix Custom Edition e-Text]. New York: McGraw-Hill. Retrieved July 10, 2008, from University of Phoenix, rEsource,  MBA/580- Strategies for Competitive Advantage Web site. Yahoo Finance. (2008a). General Motors Corporation (GM): Historical prices. Retrieved July 12, 2008, from https://finance.yhoo.com/ Yahoo Finance. (2008b). GM reassures dealers only Hummer brand is for sale. Reuters. Retrieved July 10, 2008, from https://biz.yahoo.com Don’t waste time! Our writers will create an original "Mission Vision Values" essay for you Create order

The Legacy Of The Reagan Revolution - 1592 Words

The phenomenon dubbed the â€Å"Reagan Revolution,† can have its roots traced back decades, as early as the 1950s. It is important to start in this era, as it sets the stage for the 60s, which ultimately leads into the 70s and 80s, as history tends to portray a cause and effect relationship. Each of these generations contribute to this revolution of conservatism becoming the most popular view in the nation because of their cultural and social elements, with the 60s being the most important period. However, there is also an effect that stems from the previous Presidents, and their governing abilities, or lack thereof, that held office before Reagan. Ultimately, it is a blend of these two components at the same time in their respective decades,†¦show more content†¦It is this strong alignment to liberalism, which makes the Reagan presidency a â€Å"revolution,† as it was something unexpected, or at least unexpected at this time. 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Conceptual Framework Accounting and Reporting

Question: Discuss about the Conceptual Framework for Accounting and Reporting. Answer: Introduction Accounting theories refers to the pre defined methodologies and various assumptions that applied in application of financial reporting principles. Accounting theories help in reviewing the accounting practices and how accounting practices are changed to add in the regularity framework that governs the financial reporting. Every organization must follow the accounting theories in order to serve all the mandatory requirements of the financial reporting. Failure to follow the accounting theories will lead to accounting issues and at last complete failure. Such an incidence has happened with the Dick Smith and it led to the complete failure of the organization. In this report, there will be discussion of what are the accounting issues that led to collapse of Dick and who are the shareholders that are impacted by this collapse. Discussion of accounting theories that is being affected and that clearly demonstrate actions of Dick Smith management. Review of Dick Smith Failure Accounting issues that led to collapse of Dick Smith On the basis of report by the McGrath Nicol liquidators that highlighted the accounting issues that led to failure of Dick Smith. Such accounting issues are well in the industry as Real activities management. There are many wrong accounting practices done by the management of Dick Smith that impacted the organization net worth and there was point where the net worth is below the total liabilities. It has been reported that there has manipulation of sales figures and stock inventories (Malley, 2016). Management at Dick Smith is involved in showing the high revenue despite of very low sales. According to the report, major part of reserves has been used to purchase the excessive amount of inventory in order to expand the stores rapidly. Bank loans and rebates taken from suppliers have influence on purchasing decision of managers. It can be said because in year 2014-15 there was earning before interest, tax, depreciation and amortization of $72 million but after excluding rebates and sub sidies the earning figure comes to EBITDA loss of $119 million (Keall, 2016). So it can be clearly said that treatment of rebates in the accounting procedure can be the major issue that led to failure of Dick Smith. The accounting standard Revenue Recognition has been exploited in the case of Dick Smith as there was huge alteration in the earnings due to treatment of rebates (Malley, 2016). The auditing firm Deloitte was also in question on the treatment of non earning elements in the financial statements. The private equity owner (Anchorage Capital) in Dick Smith, earned higher profits when firm was listed at AHX and this point can be said as the turning point in the mystery of the failure of Dick Smith (Malley, 2016). The owners at Dick Smith are attracted towards the IPO and they have expectation to earn more through rapid expansion. This built the pressure on the management to purchase excessive inventory and rest is history (Keall, 2016). Impact on Stakeholders due to collapse There has been huge impact on the Stakeholders due to collapse of Dick Smith. Stakeholders are those who have interest in the success of the business and they are highly influenced due to takeover or merger. Stakeholders are those who are impacted by the management decisions and in addition to shareholders themselves, creditors, employees, customers and communities are severely impacted by the liquidation of Dick Smith. Shareholders are those who invest in the shares of the company to get some part of ownership and they are in expectation of good dividends and best value for their investment (Menicucci, 2014). After collapse of Dick Smith, market value of Dick Smith crashed on the floor and no dividend was paid by the company. Employees refers to people that are involve in day to day activities at the organization and are responsible for the welfare of the organization. Their contribution to the organization are more valued and respected by the management. There are more than 3300 employees in the Dick Smith who are totally dependent on the salaries they received from Dick Smith. On the collapse of Dick Smith all these employees are severely impacted due to unemployment. There are around 2.1 million $ are due to paid to the employees that will cleared in this calendar year. Customers and Communities are the ones that need to be satisfied by the organization. Ability to meet the customers wants are the key success to any business (Pratt, 2010). Customers provide revenue to the organization that helps management to operate the business efficiently. Dick Smith fails to fulfill the customer demands as they do not persists with changing demand and proper supply of required products. Management at Dick Smith has invested quite a huge amount on the supplies that are no longer in demand and have low worth as estimated. This turn into low demand and high supplies at Dick Smith and there is shortage of earnings to fulfill the current and future objectives (Britton Alexander, 2004). Suppliers also impact the business through taking active role in decision making. In case of Dick Smith, it can be said that suppliers are main players who forces the management to manipulate the decisions regarding the purchasing of inventory (Stolowy Lebas, 2006). Dick Smith has received quite a huge amount as rebate from the suppliers and it has affected the decisions taken by the management. Suppliers have suffered a huge loss due to wide up of Dick Smith as million of dollars stands credited in the books and also suffered a loss of valued customer. Management role at Dick Smith and what motivated them to manage as they likely to do On the plain reading of article on Dick Smith it can be implied that management have taken many wrong decisions that led to failure of Dick Smith. The private owners at Dick Smith are overwhelmed by the success on the listing of the company at Australian Stock Exchange. They received quite a huge profit on listing the shares and they were looking for profits through expansion of company rapidly. As per the article it is clearly seen that massive purchasing of inventory and costly expansion are the main cause of failure. Management was forced to purchase inventories at large scale without inspecting the actual requirements and future changes in the inventory list (Bonham, 2008). Private owners were in view that rapid expansion of business will lead to more growth as in year 2013 when listing of shares has been done. On inspection it has been found that either of expansion plans was reviewed by the auditors and it cause to purchase massive stock that are not required in the market. Major accounting issue was that the entire inventory was overvalued as it was valued in the market. As per the report by the market investigator rapid clearance sale was required to keep with the cash requirements in order to finance the current and future needs of business. Management fails to keep the required cash and cash equivalents that cause the company to go under liquidation (Greuning Koen , 2001). Accounting Theories that explains the actions of Dick Smith Management There are various accounting theories that explain the relationship between the company and its stakeholders. In the case of Dick Smith, positive accounting theory explains more about the actions of management at Dick Smith. Positive Accounting theory is concerned with the accounting practices. It is highly linked with the management actions and how they impact the stakeholders. It explains and predicts which organization will or will not uses a particular method for accounting practices. It does guide which method to be applied but highly concerns with the action of management on the organization (Weygandt, Kieso, Kimmel, 2010). Agency theory explains more about the positive accounting theory and it helps to understand the relationship between the shareholders (principles) and managers (agents). According to this theory managers perform to increase the wealth of organization and promote the stakeholders needs. Agents are responsible to enter into such contracts that are beneficial for the stakeholders. Agency theory defines the different models of corporate governance. According to this theory, it is duty of board of directors to act for the best interest of the company shareholders (Staubus, 2013). In the case of Dick Smith, managers had to perform to increase the company performance and to satisfy the needs to company owners. As per the report, managers fail to comply with the agency theory and this ultimately results in collapse of company (Greuning Koen, 2001). Managers have purchased the inventories that are not required to be purchased and this action reduces the reserve capital with the Dick Smith. Stakeholders are not benefited with action of company and company goes under complete wind up. Discussion of accounting theories There are two accounting theories that are clearly relates with the business activities. These two theories are positive accounting theory and other is normative accounting theory. Positive accounting theory as discussed above is related to real life occurrence of accounting transactions and it focus is on how management address the accounting treatment of various transactions. On the other hand, normative accosting theory tells the accounting policy makers on what should be done to confer with the accounting theoretical principles (Macve, 2015). In simple terms, normative theory starts with the theory and with specific policies whereas positive theory starts with the specific policies and ends with the management accounting principles. On the basis of analysis it can be said that positive theory is more important than normative theory as positive theory is related with the real life transaction and it impacts large number of people (Kieso, Weygandt Warfield, 2010). Conclusion On the basis of above discussion it can be said that management role is most important for the organization success. They work as agent for the company owners and they are wholly responsible for every act they perform to complete various activities in the organization. In the case of Dick Smith it can be said that one wrong action of management regarding the purchase of excessive inventory leads to collapse of Dick Smith. Bibliography Bonham, M. 2008. International GAAP 2008: generally accepted accounting practice under international financial reporting standards. Wiley. Britton, A. and Alexander, D. 2004. Financial Reporting. Cengage Learning EMEA. Greuning, H. Koen, M. (2001). International Accounting Standards: A Practical Guide Other World Bank Bks. World Bank Publications. Keall, C. 2016. Five serious questions about Dick Smith collapse. [Online]. Available at: https://www.nbr.co.nz/opinion/five-serious-questions-about-dick-smith-collapse [Accessed on: 4 September, 2016]. Kieso, D., Weygandt, J. and Warfield, T. 2010. Intermediate Accounting: IFRS Edition. John Wiley Sons. Macve, R. 2015. A Conceptual Framework for Financial Accounting and Reporting. Routledge. Malley, A. 2016. Dick Smith collapse raises more questions for accounting profession. [Online]. Available at: https://www.smh.com.au/business/retail/dick-smith-collapse-raises-more-questions-for-accounting-profession-20160721-gqagz5.html [Accessed on: 4 September, 2016]. Menicucci, E. 2014. Fair Value Accounting: Key Issues Arising from the Financial Crisis. Springer. Pratt, J. 2010. Financial Accounting in an Economic Context. John Wiley Sons. Staubus, G.J. 2013. The Decision Usefulness Theory of Accounting: A Limited History. Routledge. Stolowy, H. and Lebas, M. 2006. Financial Accounting and Reporting: A Global Perspective. Cengage Learning EMEA. Weygandt, J.J., Kieso, D.E. and Kimmel, P.D. 2010. Financial Accounting: IFRS. John Wiley Sons.