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• Reco nize the ke   role of  u er mana ement in 

setting a direction

 for

 the

 organization

• Understand why vision plays a role in a company’s success

• Be able

 to reconcile

 the

 need

 for

 stability

 with

 the

• Uncover & critique underlying assumptions and 

• Think about your own values and assumptions

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•  

– Goals you

 might

 like

 to achieve

 during

 your

 lifetime

• Instrumental values

–   v u  

achieving the terminal values (Column 2)

 , friends or co‐workers, would it matter? Why or 

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Jim Collins: Teacher and Business 

consultant

Jerry Porras: Professor of  

Stanford 

University 

in 

the 

US

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Stabilit coexists with chan e 

Envisioned future

- Stimulates

progress

nc u es:

BHAG

&Vivid description of Core Ideology –

unchanging.

the future

nc u es:Core Values

&

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•  

holds the

 organization

 together

stems from founders core beliefs  – e.g. imagination, equality,  justice, 

sustainability)

– Core purpose: Ideals that underlie the work of  the 

company (e.g. to make people happy, to solve the seemingly 

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•

– Audacious, vivid goals

 stimulate

 progress

–  

– Difficult but not impossible to achieve

– vo   e  e  ave arr ve   syn rome

• Envisioned future: What will the company/the world 

• Motivates people to achieve the end goal. 

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Apply C&P’s “5 whys” to your own decision to study us ness sc oo …

Q1: Why did you choose to study business?

A1: 

It 

seemed 

like 

a 

practical 

choice.– : 

• A2: Business is part of  most disciplines. Art, medicine, technology… they all have a business component.

– Q3: Why

 do

 they

 all have

 a business

 component?

Etc…

• A5: I can enable/facilitate a number of  

about, without having to choose one 

discipline to dedicate

 my

 life

 to,

 right

 now.

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Exercise: 

Vision 

in 

successful 

Canadian 

firms

• Six successful companies M‐C (ch. 7)

– o are

– Methanex

– Fruits & Passion

– Iceberg Vodka

– Extreme CCTV

– Couche‐Tard

• What might be their core ideology? 

• What might be an audacious goal (BHAG)?

• ‐ 

page #s)

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break

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• Pay close attention to the following numbers. Please note to yourself  any pattern that you may detect.

– ,  , 

– 51, 102, 103

– 38, 76,

 77

– 1,  , 

Now, if  you see a 

attern…. come u   with a 

series of  numbers

 (or

 a 

few) that follow the same 

pattern. 

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Ex l r n rl in m ti n 

• = 

principles that form

 the

 bases

 of  our

 beliefs

 & 

•They tell us whether evidence provided for a 

– Reality assumptions

– a ue assumpt ons

• Challenging underlying assumptions

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Evidence: Aldo (198), Bata (99), Bellini (7), Claim: “Outsiders” are 

more likely to build global, ron man  ,  e c mann  ,  ronac

(101)

successful businesses

Underlying reality

 assumptions:

Eac   o  t ese entrepreneurs is an outsi er in Cana a

The number of  outsider entrepreneurs is proportionately greater 

than one would expect (compared to Canadian‐born)

 Are these

 assumptions

 warranted? 

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Evidence: McCain (101); Cirque du Claim: “Outsiders” are 

more likel   to build  lobal, ,  ,  , 

(198‐9) 

successful businesses

Underlying reality

 assumptions:

Each of  these entrepreneurs is an outsider in Canada

 Are these assumptions warranted? 

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o son 

s a poor

marketer of  beer The Beer Store in Ontario

All Molson beer is sold in “the same dirt‐

brown lon ‐neck” bottles 

Rubber gloves & conveyor belts are signs of  disrespect

Brown 

bottles 

are 

unattractive

Underlying reality assumptionClear bottles are more appropriate for selling beer

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Mandel‐Campbell’s underlying reality assumptions?

Successful Less than successful

… and

 some

companies that fall 

Companies that

went global, but Went Global

in this box were arrogant

She describes 

companies that fall ?Stayed Local

  …

Im licit realit   assum tion that there are few or 

no companies 

in 

the 

empty 

box

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•

– Use the

 feedback you

 will

 get

 to revise

 your

– Personalize the cover letter with names and 

contact information of team members 

– Present this to your instructor as soon as possible 

― b   Week 7 at the latest

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Examples of midterm questions: Based on

“ ”,

1. Give an example of  a  first  mover mentioned in the article. 

xp a n your se ec on.

2. “The self 

‐satisfied 

 Eaton

 clan…

 chose

 to

 neglect 

 their 

herita e heirloom.”  How mi ht Greiner assess this 

statement?

3. Would Mandel

‐Campbell

 agree

 with

 this

 article?

 Why

 or why

 not

4. Does the article convince you of  the claim that foreign 

investment is ood? Please ex lain addressin stren ths and 

weaknesses of  the

 evidence,

 and

 at least

 one

 underlying

assumption in the article. 

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Chandler’s claims

• Successful firms

 capitalize

 on

 economies

 of  scale

 &

scope, create management structures and invest in 

research & development

– Once a firm

 loses

 the

 opportunity

 to be

 a first

 mover,

 it is difficult to regain competitive advantage

– Growth through unrelated diversification is a poor 

– Business ownership patterns have diminished the 

likelihood of  long‐term success

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Greiner 

 – ke 

conce ts• Organizational growth = A series of  

developmental 

phases• Management practices that work well in one p ase  ring on a crisis in t e next

• Concept 

list: 

Evolution 

& 

Revolution; 

Crises 

= 

“ ”,  ,  ,  , growth = Creativity, Direction, Delegation, Coordination, Collaboration

• Different management

 styles

 are

 appropriate

 in different phases of  the life cycle

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 – 

• O erational effectiveness vs strate

• Variety‐based

 positioning

• ‐

• Access‐based positioning

‐

• Strategic fit

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Other 

terms 

ou 

should 

know• Shareholders* • Multinational firm&

• Diversification• R&D*

globalization*• Consumerism

• Mergers & acquisitions

• Environmental change

• Claims

• Qualities of evidence

• Chief Executive Office *

• Organizational structure

•assumptions

 *More information & examples inCritical Thinkingpg 86-94

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To prepare for midterm next week

•  

– “Kitchen‐classroom

 conservatives”

“ ”–  

• Read, ponder, take notes, discuss

• erm  s c ose ‐ oo no es– Clean copy of  the two articles

–‐

,‐

– Paper (not electronic) dictionaries allowed