The Business Vision & Mission

Strategic Management:
Concepts & Cases
Fred David

Ch 2 -1
 Ch 2 -2
Muhammad Muhammad
Adnan Saqib Nisar Ali
Jahangir Arman
68 30
48 36
by
Presented
Nisar Ali

Ch 2 -3
 Chapter Outline
What do we want to become?

What is our business?

Importance of Vision and Mission Statements

Characteristics of a mission statement

Components of a mission statement

Writing & evaluating mission statements

Ch 2 -4
Ch 2 -5
 What Do We Want To Become?

A vision statement should answer this basic question;

It should be established first and foremost;

It should be concise but clear;

A clear vision provides the foundation for developing a

comprehensive MISSION STATEMENT.
Ch 2 -6
 Vision

Agreement on the basic vision for which the firm strives to

achieve in the long run is critically important to the firm’s
success.

Ch 2 -7
 Vision
statments

“The last thing IBM needs right now is a vision.” (July

1993)

What IBM needs most right now is a vision.” (March

1996)

-- Louis V. Gerstner, Jr., CEO, IBM Corporation

Ch 2 -8
“What do we want to become?

Ch 2 -9
 Vision and Mission

Clear Business
Vision

Comprehensive
Mission Statement

Ch 2 -10
 VISION – EMPHASIS ON AMBITION AND
AMBIGUITY
Sony’s vision in early 1950’s:
“becoming the company that
most changes the worldwide
image of Japanese products as
being of poor quality.”
CitiBank’s vision in 1915:
“the most powerful, the most
serviceable, the most far
reaching world financial
institution the world has ever
seen.”
Vision statements
• generally express
long-term action
horizons,
• are ambitious and
force the firm to
stretch.
• their ambiguity
allows flexibility for
changing strategy
or implementation
tactics
Ch 2 -11
What do we want to become

Shared Vision --
• Creates commonality of interests
• Reduce daily monotony
• Provides opportunity & challenge

Ch 2 -12
 Vision Statement Examples

A national organization which represents its members

in all aspects of poultry and eggs on both a national
and international level

-- U.S. Poultry & Egg Association

Ch 2 -13
 Vision Statement Examples

The Vision of Manley Baptist Church is to be the

people of God, on mission with God, motivated
by a love for God, and a love for others

-- Manley Baptist Church

Ch 2 -14
 Vision Statement Examples

The Vision of USGS is to be a world leader in the

natural sciences through our scientific excellence
and responsiveness to society’s needs

-- U.S. Geological Survey (USGS)

Ch 2 -15
 Vision Statement Examples

To be the first choice in the printed

communications business. The first choice is the
best choice, and being the best is what Atlanta
Web pledges to work hard at being—every day!

-- Atlanta Web Printers, Inc.

Ch 2 -16
Muhammad Arman

Ch 2 -17
Ch 2 -18
 Mission

 Reason for being

 Purpose of
Existence
 Way to Achieve
Vision
 Mission is a
Roadmap
Ch 2 -19
Ch 2 -20
 What is Our Business?

A mission statement does answer this basic

question;

It is a declaration of an organization’s “reason

for being”;

It is essential for effectively establishing

objectives and formulating strategies;

Carefully prepared statements of vision and

mission are the FIRST STEP in Strategic
Management
Ch 2 -21
“What is our business?”

Or “Purpose of Existence”

Ch 2 -22
Mission Statements

Enduring
statement of
purpose

Distinguishes
one firm from
another

Declares the
firm’s reason for
being

Ch 2 -23
 Ch 2 -24
One of Xerox’s
core values:
• We succeed through satisfied customers
• “Our strategic intent is to help people find better Mission statement
ways to do great work—by constantly leading in for Xerox”:
document technologies, products and services
that improve our customers’ work processes and
business results.”
VALUES
PURPOSE & CORE
EMPHASIS ON
MISSION –
 Mission Statements
Also referred to as:

Creed
statement

Statement of Statement of
business principles purpose

Statement of
philosophy

Ch 2 -25
 Mission Statements

Reveal what an organization wants to be and whom it wants to

serve.

Essential for effectively establishing

objectives and formulating strategies

Ch 2 -26
Mission Statement of an Institution

Ch 2 -27
 Developing Vision & Mission

Many organizations develop both vision & mission statements

Profit & vision are necessary to effectively motivate a workforce

Clear mission is needed before alternative strategies can be

formulated and implemented

Participation from diverse managers is important in developing

Ch 2 -28
the mission.
 Mission Statement Examples

It is the California Energy Commission’s mission to

assess, advocate, and act through public/private
partnerships to improve energy systems that promote a
strong economy and healthy environment.

-- California Energy Commission

Ch 2 -29
 Mission Statement Examples

The Bellevue Hospital, with respect, compassion, integrity,

and courage, honors the individuality and confidentiality of
our patients, employees, and community, and is progressive
in anticipating and providing future health care services.

-- The Bellevue Hospital

Ch 2 -30
Adnan Saqib

Ch 2 -31
 Importance of mission and Vision
Statements

Unanimity
of Purpose

Resource
Allocation

Mission and
Vision
Organizatio
nal Climate

Focal point for work

structure

Ch 2 -32
Characteristics of Mission Statement

Broad
Broadin
inscope
scope

Generate
Generatestrategic
strategic
alternatives
alternatives

Not
Notoverly
overlyspecific
specific

Reconciles
Reconcilesinterests
interests
among
amongdiverse
diverse
stakeholders
stakeholders

Finely
Finelybalanced
balancedbetween
between
specificity
specificity&&generality
generality Ch 2 -33
Characteristics of Mission Statement

Arouse
Arousepositive
positivefeelings
feelings&&
emotions
emotions

Motivate
Motivatereaders
readersto
toaction
action

Generate
Generatefavorable
favorable
impression
impressionof
ofthe
thefirm
firm

Ch 2 -34
Characteristics of Mission Statement

Reflect
Reflectfuture
futuregrowth
growth

Provide
Providecriteria
criteriafor
for
strategy
strategyselection
selection

Basis
Basisfor
forgenerating
generating&&
evaluating
evaluatingstrategic
strategic
options
options

Are
Aredynamic
dynamicin
innature
nature
Ch 2 -35
Muhammad Jahangir

Ch 2 -36
 Mission & Customer Orientation –
Vern McGinnis

Define what the organization is

Define what it aspires to be

Limited to exclude some ventures

Broad enough to allow for growth

Distinguishes firm from all others

Stated clearly – understood by all

Ch 2 -37
 Mission & Customer Orientation

An Effective Mission Statement --

Anticipates customer needs

Identifies customer needs

Provides product/service to satisfy

needs

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 Social Policy & Mission

Managerial philosophy shapes social policy --

Responsibilities to
Affects –
development of • Consumers
vision & mission • Environmentalists
• Minorities
• Communities

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 Social Policy & Mission

Social policy should be integrated in all strategic-management

activities

Mission should convey the social responsibility of the firm

Ch 2 -40
 Components of Mission Statement

Products
Services Markets
Customers

Technology

Employees
Mission
Elements

Survival
Growth
Profit
Public
Image
Self-Concept Philosophy
Ch 2 -41
 PepsiCo Mission

PepsiCo’s mission is to increase the value of our

shareholders’ investment. We do this through sales
growth, cost controls, and wise investment resources. We
believe our commercial success depends upon offering
quality and value to our consumers and customers;
providing products that are safe, wholesome,
economically efficient and environmentally sound; and
providing a fair return to our investors while adhering to
the highest standards of integrity.

Ch 2 -42
 Ben & Jerry’s Mission

Ben & Jerry’s mission is to make, distribute and sell

the finest quality all-natural ice cream and related
products in a wide variety of innovative flavors
made from Vermont dairy products. To operate the
Company on a sound financial basis of profitable
growth, increasing value for our shareholders, and
creating career opportunities and financial rewards
for our employees. To operate the Company in a
way that actively recognizes the central role that
business plays in the structure of society by
initiating innovative ways to improve the quality of
life of a broad community—local, national and
international.
 Mission Statement Evaluation Matrix

COMPONENTS          

Concern for
Survival,
Products Growth,
Organization Customers Services Markets Profitability Technology

           

PepsiCo Yes No No Yes No

Ben & Jerry's No Yes Yes Yes No

            Ch 2 -44
 Mission Statement Evaluation Matrix

COMPONENTS          

Self- Concern for Concern for

Organization Philosophy Concept Public Image Employees

         

PepsiCo Yes No No No

Ben & Jerry's No Yes Yes Yes

          Ch 2 -45
 Conclusion
Every organization has a unique purpose and reason of
being. This uniqueness should be reflected in vision and
mission statements. An organization achieves a highest
sense of purpose when strategists, managers and
employees develop and communicate a clear vision and
mission.

Well designed vision and mission statements are

essential for formulating ,implementing and evaluating
strategy.

Drucker says” Developing a clear business vision and

mission is the first responsibility of Strategists”.
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Ch 2 -47