Company Overview

CLC-Mission and Vision Statements Analysis and Company Overview

Fabienne Schmidt, Matthew Orr, Michael Lucarelli, Rimbu Titus, Sunya Rogers

Colangelo College of Business, Grand Canyon University

MGT-660: Strategic Management

Dr. McDonald

June 01, 2022

Company Overview (Dick’s Sporting Goods)

Dick’s Sporting Goods, founded in 1948, is a holding, publicly owned company traded on the NASDAQ stock exchange under the symbol DKS. The company was founded by Richard Dick Stack at the age of 18 in Binghamton, New York with $300 given by his grandmother to pursue his dream. In 1952, he offered more products, including work clothes and fishing tackle. In 1977, his son Edward joined the company and by he took over the role of the company’s CEO. In 1994, the company expanded its operation to four states and its headquarters was relocated to Pittsburgh, PA. By 2000 Dick’s had opened 100 stores as well as its first distribution center. The company was then made to be public in 2002. In 2004 Dick’s acquired Galyan’s Trading company. In the years since, Dick’s established its foundation, opened more and more stores, and distribution centers, launched Buy online and pick-up in all stores, and went into strategic partnerships (“About Us”, n.d.).

By now, Dick’s is a leading omnichannel retailer in the sporting goods industry serving athletes and outdoor enthusiasts. The company has a divisional-by-product type structure containing three main segments, hardlines, softlines, and team sports (David et al., 2020). Dick’s generates revenue through the sale of sports footwear, apparel, equipment, and accessories, through its retail stores, online, and through its mobile apps. The company has a chain of superstores that offer equipment for various team sports, including hiking, fishing, and hunting. The company also owns and operates other unique specialty shop-in-shops, such as Golf Galaxy, and Public Lands. In the fiscal year ended December 31, 2021, total sales equaled $12.29 billion, 44% coming from hardlines, 34% from apparel, 21% from footwear, and 1% from other (“Annual Reports”, 2021). Some of the brand merchandise that Dick’s supplies include Columbia Sportswear, Adidas, Nike, and Calloway. It also supplies private label brands such as Walter Hagen for men and Ativa apparel for women.

The company’s corporate headquarters is located in Coraopolis, Pennsylvania, United States. Employing more than 50,700 employees and operations spanning 861 stores in 47 states as of January 29, 2022, DICK’S has a wide reach within the United States to equip all athletes to achieve their dreams (“Annual Reports”, 2021). Its major competitors are Academy Sports + Outdoors, Hibbett Sports, Bass Pro Shops, and Big 5 Sporting Goods, but also Amazon, eBay, and other online competitors. The company has been rethinking customer relationships, focusing on filling an immediate need, providing a tangible experience, and talking to an expert. It has also adopted the right in-store technology to meet digital behaviors. For instance, the company has an app that allows customers to see the size of sportswear and purchase it online. Also, the company has partnered with many brands, including Nike and Adidas, and it continues to build brand relationships with other private brands (“Annual Report”, 2021). These sale strategies have facilitated the success of Dick’s Sporting Goods.

Company’s Mission and Vision Statements

Mission Statement (“About Us”, n.d.)

We create an inclusive environment where passionate, skilled, and diverse teammates thrive.

We create and build leading brands that serve and inspire athletes.

We deliver shareholder value through growth and relentless improvement.

We make a lasting impact on communities through sport.

Vision Statement

not available

Analysis of Dick’s mission and vision statements

Dick’s Sporting Goods does not have a vision statement, which clearly shows a weakness of the company. They should create a vision statement that is clear, futuristic, concise, unique, and inspiring, and that should be doable but challenging (David et al., 2020). Usually, companies want their employees to align their values with their own that follow the company’s vision. Dick’s should quickly develop a vision statement because it also lays the foundation for its mission statement. Managers and executives should agree on this vision, so they can strive for long-term success.

Reading through the mission statement, it’s not complex to identify the direction and goals of the company. Dick’s Sporting Goods incorporates its mission statement in its business operations. The statement explains the organization’s purpose, philosophy, a sense of identity and should provide motivation and inspiration (Davis et al., 2020). It helps the company to succeed by following through with what it believes and stands for. The mission statement shows what a company aims to do now and how the firm is successful. Dick’s Sporting Goods’ mission statement defines its commitment to serving customers who are the athletes. It also shows its dedication to improving various aspects of its business operation, including the store’s culture, strategic partnerships, annual profits, stakeholder value, and community support. A key sentiment expressed in the mission statement is the ability of Dick’s sporting goods to facilitate the improvement of lives and over-deliver on established expectations. The desire to improve themselves and others is a servant-leadership principle. The mission statement shows that the company’s focus is to provide superior care and experience to the individual athlete, shareholders, and the community.

However, there are weaknesses in Dick’s Sporting Goods’ mission statement. The company does discuss all necessary components mentioned by Davis et al. (2020). It is missing its markets, technology, concern for public image, and concern for survival and growth. It does not guarantee its customers affordable and high-quality products. Rather, it vaguely states its dedication to improvement. The products offered could be of higher prices than other brands that offer the same products with minimum prices. Another potential drawback of both the mission statement is the failure of commitment to expand into new athlete-related services. Furthermore, the mission statement could’ve been an effective means of communication to express their commitment to sustainability amid increased pressure for companies to cut back on their carbon and environmental footprint. The company’s operations must reflect the athletes and communities it serves and consistently works hard to maintain its level of commitment to all stakeholders.

New and Improved Mission and Vision Statements

Formulating a new vision and mission statement should entail and capture the essence and direction of the company. Also, a consideration of the potential direction of the company should align with a national and global approach to striving for substantiality. In the following, a suitable mission and vision statement will be expressed:

Mission Statement:

Our quality name brand products, excellent selection, and fair prices offer outdoor enthusiasts and an array of athletes the ability to achieve their goals and dreams. As the #1 sports and fitness specialty omnichannel retailer serving the United States, we employ the highest trained in-store advisors that guide our clientele to the right products which are in line with the belief that sports make people better and that giving back and doing what’s right is ultimately what makes us all successful. In a world where the retail market has become more online, Dick’s provides a great online experience, but we hold to the belief that there is no replacement for the hands-on experience provided in our stores. Dick’s will exceed the expectations of athletes and outdoorsmen around the world.

Vision Statement:

To inspire, guide, and equip outdoor enthusiasts and athletes to achieve their goals and dreams.

Proposed Mission and Vision Statements

Considering that Dick’s Sporting Goods does not have a vision statement it is not possible to compare it and describe how it is better than the existing one. However, a vision statement is important and should describe the company’s desired future and drive its strategic plan, which our proposed one describes (MacLeod, 2016). The new mission statement addresses four missing sections from Dick’s existing mission statement. Dick’s current mission statement does not specify the geographic markets they serve, address technology, concerns for survival, and public image (David et al., 2020). In the new mission statement, we added that Dick’s currently serves the United States and added a future-looking statement by stating that Dick’s wants to exceed the expectations of athletes and outdoorsmen around the world. We addressed technology and concerns for survival by mentioning the online retail threat, but that Dick’s has invested in technology and has an online presence, but that the hands-on experience provided in the store cannot be beaten. Lastly, public image is addressed in our new statement about giving back and doing what’s right.

References

About us. (n.d.). DICK’S Sporting Goods. https://investors.dicks.com/about-us/default.aspx

Annual report (2021). DICK’S Sporting Goods. https://investors.dicks.com/financials/annual-reports/default.aspx

David, F. R., David, F. R., & David, M. E. (2020). Strategic management concepts and cases: A competitive advantage approach (17th ed.). Cengage Learning.

MacLeod, L. (2016). Mission, Vision and Values Statements: The Physician Leader’s Role. Physician Leadership Journal, 3(5), 18–25. https://lopes.idm.oclc.org/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=117613807&site=ehostlive&scope=site&custid=s8333196&groupid=main&profile=ehost