CORPORATE and

COMMUNITY
Chapter 4 Lecture 2
What is the purpose of corporations?
What activities do they then pursue in
communities?

ORGANIZATIONS & COMMUNITY

CORPORATE and
COMMUNITY
COMMUNITY BEGINS WITH
CORPORATIONS KNOWING
THEIR PURPOSE, THEIR MISSION
AND WITH PEOPLE WHO KNOW
THEIR PURPOSE/MISSION IN LIFE
ORGANIZATIONS & COMMUNITY

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?

ORGANIZATIONS & COMMUNITY

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.

ORGANIZATIONS & COMMUNITY

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

ORGANIZATIONS & COMMUNITY

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.

ORGANIZATIONS & COMMUNITY

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

ORGANIZATIONS & COMMUNITY

Decisions About Enterprise,

Corporate, Business and
Operational Strategies
Define

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

structures are needed to satisfy these objectives

ORGANIZATIONS & COMMUNITY

Decisions About
Enterprise, Corporate,
Business and Operational
Strategies Define

individual objectives, job assignments, employee

activities

ORGANIZATIONS & COMMUNITY

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

ORGANIZATIONS & COMMUNITY

Since 1997, Time Warners

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

ORGANIZATIONS & COMMUNITY

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

ORGANIZATIONS & COMMUNITY

Argus Computers
India

As you watch this, be looking for these points:

what is the founder's purpose?
how are people developed?
how is the organization structured?

ORGANIZATIONS & COMMUNITY