Chapter Four:

The Business Vision and Mission

• What do we want to become?

• What is our business?
• Importance of Mission Statements
• Characteristics of a mission statement
• Components of Mission statement
• Writing & evaluating mission statements
Vision

It is especially important for managers and executives in any

organization to agree on the basic vision that the firm strives to
achieve in the long term.
Vision

“What do we want to become?”

 Vision ….cont’d

A vision statement should be realistic and credible,

well articulated and easily understood, appropriate,
ambitious, and responsive to change.

It should orient the group's energies and serve as a

guide to action.

It should be consistent with the community's values.

In short, a vision should challenge and inspire the

group to achieve its mission.
 Vision

Clear Business
Vision

Comprehensive
Mission Statement

A clear vision provides the foundation for developing a comprehensive mission statement.
Mission

“What is our business?”

Mission

• An enduring statement of purpose that distinguishes

one organization from other similar enterprises,

• The mission statement is a declaration of an

organization’s “reason for being.”

• A clear mission statement is essential for effectively

establishing objectives and formulating strategies.

• A business mission is the foundation for priorities,

strategies, plans, and work assignments.
Mission Statements

• Reveal what an organization• . wants to be and whom

it wants to serve
• Clear mission is needed before alternative strategies
can be formulated and implemented
• Essential for effectively establishing objectives and
formulating strategies
 Importance of Mission
Organizations carefully develop a written mission statement in
order to reap the following benefits:
1. To ensure unanimity/agreement of purpose within the organization
2. To provide a basis, or standard, for allocating organizational resources
3. To establish a general tone or organizational climate
4. To serve as a focal point for individuals to identify with the
organization’s purpose and direction, and to deter/discourage those who
cannot participating further in the organization’s activities
5. To facilitate the translation of objectives into a work structure
involving the assignment of tasks to responsible elements within the
organization
6. To specify organizational purposes and then to translate these
purposes into objectives in such a way that cost, time, and performance
parameters can be assessed and controlled
Characteristics of an effective Mission

Broad in scope

Generate strategic alternatives

Not overly specific

Reconciles interests among

diverse stakeholders

Excellently balanced between

specificity & generality
Effective Missions

Stimulate positive feelings &

emotions

Motivate readers to action

Generate favorable impression of

the firm
Effective Missions

Reflect future growth

Provide criteria for strategy

selection

Basis for generating &

evaluating strategic options

dynamic in nature
An Effective Mission Statement --

• Anticipates customer needs

• Identifies customer needs
• Provides product/service to satisfy needs
Social Policy & Mission

Social policy should be integrated in all

strategic-management activities

Mission should convey the social responsibility

of the firm
 Products
Services Markets
Customers

Technology
Components of Mission
Employees
statement

Survival
Growth
Profit
Public
Image
Self-Concept Philosophy
Components of Mission Statement
 Example: 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.
 Mission Statement Evaluation Matrix

COMPONENTS

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

PepsiCo Yes No No Yes No

 Mission Statement Evaluation Matrix

COMPONENTS

Self- Concern for Concern for

Organization Philosophy Concept Public Image Employees

PepsiCo Yes No No No