Case Study

Case Study



Case Study

Performance of the Divisions

The Moveright Company has four divisions which help the organization in meeting its strategic goals and objectives by fulfilling the requirements of the company's vision and mission statements. The performance of the divisions of the Moveright Company is said to be satisfactory, however, there are some divisions which are performing exceptionally well and some are not meeting its targets.

For instance, Denton division is unable to meet its target which is making a negative impact on the overall efficiency of the division and as well as the company. Moreover, the performance of the Limster is above standard as this division is not only meeting its objective but also exceeding the target set by the division. Similarly in the case of the Maytree and the Rollington Divisions, the target of revenue and profit are met. So, it can be said that the overall efficiency and effectiveness of most of the divisions are good but the Denton is the only division which has to increase its efficiency in terms of increasing the sales which will ultimately affect the division in increasing the profit and hence the performance of the company will be increased.

Revenue £,000s

Profit £,000s

Target

Actual

Target

Actual

Denton

18

13

2.5

2.3

Limster

15

16

2

2.5

Maytree

13

13

1.9

2.1

Rollington

20

23

3

3

Mission, Vision and Key Performance Indicators

The Performance Impact of KPI's, Mission and Vision Statements

The key to this popularity most probably lies in a myriad of mutually reinforcing factors. The Moveright Company's one essential element is the growing body of literature offering validity to the assumption that developing a KPI's, mission and vision statement generates organizational benefits which should ultimately result in improved (financial) performance. Frequently cited benefits include the following significant and important factors to make an effective mission, vision and the KPI's:

Providing a sense of the organization's direction and purpose.

The Moveright Company's KPI's, mission and vision statements are the starting point of every strategic initiative. Only a clear definition of an organization's purpose makes it possible to formulate realistic and coherent goals (Lipsey & Wilson, 2001), and to choose between strategies.

Focusing the allocation of organizational resources.

The Moveright Company allocate resources by providing a common direction that transcends individual, departmental and transitory needs, the KPI's, mission and vision statement acts as a strategic framework for allocating organizational resources and will facilitate organizational decision-making processes. (Mathieu & Zajac, 1990)

Communicating effectively with important internal and external stakeholders.

The KPI's, mission and vision statement can be an effective vehicle for the Moveright Company in communicating with internal and external stakeholders. By clarifying the organization's goals, the organization can persuade stakeholders to provide the essential (tangible or intangible) resources needed to sustain her activities. (O'Gorman & Doran, 1999)

Describing the values of the organization that will guide and inspire organizational members.

The Moveright Company's KPI's, mission and vision statement serves as a focal point for individuals to identify with the organization's purpose and direction. The resulting shared “sense of mission and vision” hereby acts as a cultural control and coordinating mechanism that focuses employee efforts on the achievement of strategic ...