CHAPTER FOUR
BUSINESS PLAN BASICS
CHAPTER OBJECTIVES
This chapter aims to help the
learner:
r Understand and define a
mission statement, vision
statement, and core values;
Understand and differenti
ate between a mission and
a vision statement;
Formulate his/her own
mission statement, vision
statement, and core values;
and
Classify possible strategic
or financial objectives.
PROPOSED ACTIVITY
Discussion of mission,
vision, and core values,
and how they relate to the
individual.
36 CHAPTER FOUR BUSINESS PLAN BASICS
Vision
Su cess Mission
Values
Ye often find mission and vision statements posted on the walls of
W: frms,
companies, and corporations, bigor small. These may also be found in company
handbooks and manuals, or in the About section of company Web sites.
Mission and vision statements are indeed everywhere, but why the need for constant
reminders?
Imagine the business as a map. A map provides directions and tips. Maps indicate
the good path versus the bad path. It provides information on much needed short cuts,
pit stops, and other services that one might need while headed to a desired destinacion.
Or think about baking a cake. You grab a cook book, or fnd instructions on the
back of an easy-bake box. The cooking instructions specify how many cups of iour are
needed, how many eggs, how often (or how vigorously) to stir, and how long you would
need to bake. Cookbooks tell you what ingredients are needed to get your
delicious, delectable cake.
outputa
Mission, vision, and core value satements work the same way. These give proper
instructions to the reader-in the case of the company, its employeesin order to direct
them toward the preferred end results.
What must we do to get to where we want to be? Where do we want to be in the
first place? What is our end goal in the grand scheme of things?
Ihe answer to these questions and others sinilar to thenm lie in the company's
mission, ision, and core values.
Lesson 1
What is a Mission
Statement?
The Business Dictionary definition of a mission statement is that it is a GUIDE QUESTIONS

T written declaration of an organization's purpose and focus. In Alfred Marcus' 1. What is a mission state
Management Strategy, he briefly defines the mission statement as a statement of
the basic purpose and scope of theorganization's operations (Cabrera, Altarejos, Riaz
ment?
2. Why do companies or
individuals create mission
2016). statements?
Companies and individuals create corporate or personal mission statements for 3. What guidelines must one
themselves for the following reasons: follow in creating a mission
1. Statement of Purpose - Purpose is the motivation why somnething is done or why statement?
something exists. It is the reason you exist.
Example:
Tobring inspiration and innovation to every athlete* in the world.
"If youhave a body, you are an athlete. - NIKE
Source: http://nikeinc.com/pages/about-nike-inc

2. Statement of Focus - Focus, tells us what the center of interest or attention is. This
may be a service or a product or goals and objectives.
Example:
Googles mission is to organize the world's information and make it universally accessible
and useful. -Google
Source: https://www.google.com/about/company/
A mission statement is a
written declaration of an
organization's purpose and
focus.

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Lesson 1 What is a Mission Statement? 37


TRIVIA
Did you know that a great
mission statement should con
tain four key elementS: value,
inspiration, plausibility, and
specificity? Business Insider
writer Dave Smith cited these
elements as must-haves for
businesses to come up with
mission statements that "serve
a real purpose"
http://www. inc.com/ss/5
tips-on-de veloping-an-effec
tive-mission-statement
38 CHMAPTER FOUR BUSINESS PLAN BASICS
3. Statement of Transparency - A statement of transparency revolves on four key words:
clarity, sheerness, obviousness, and truth. This statement is openly
declared so as not
tocause ambiguity or confusion for members of your organization (e.g.,
employees,
partners, administrators) and people outside (e.g., potential investors, customers).
Example:
We provide safe, affordable and sustainable water solutions that enable those we serve to
lead healthier, more comfortable lives. - Maynilad
Source: http://www.mayniladwater.com.ph/company-vision.php
4. Statement of Direction-By knowing who you are now, you can set your mark and
plan for a furure. This is where you begin and from here you will know where and
how to move forward.
Example:
SM Foundation sees itself as a channel for its employees, cuStomers, tenants, suppliers
and service providers, media, local and national government units, government and
non-government organizations, national and foreign agencies, civic organizations, and
corporate and private sectors to extend immediate and long-range assistance to deprived
communitis in areas served by the SM Group of Companies. - SM Foundation
Source: http://www.sm-foundation.org/aboutsnfi.html
The mission statement answers the questions: Why am I here? What am I here for?
Other questions that may help in the formulation of your very own mission
statemment are:
a. Who am I?
b. What do I do?
C Why do I do it?
d Who am I serving?
Activity
Craft your own mission statement by answering the questions above. It would be good to
note that an objective is different from amission statement. While the mission statement
gives youthe direction in the broader sense,the objective gets down to the nitty-gritty.
These objectives help in the achievement of our mission (and vision), and it helps if your
objectives are S.M.LA.R.T.
a. S- Specifñc
What is it that you would like to achieve? Be exact. Use specific terms and avoid
ambiguous terms when formulating objectives.
Bad example: i want to be attractive.
Good example: iwant to improve my physical appearance and maintain a healthy body.
b M- Measurable
These are the detaiis that help us see whether we are close or far from our objectives.
Objectives need to be measurable so we can gauge our progress.
Bad example: Ineed to lose a LOT of weight.
Good example: Based on my BMI (body mass index), Ineed to lose 30 pounds in order
to reach my ideal weight.
 A- Achievable
Is it attainable or something that you pulled out of a hat? Achievable objectives are
realistic ones.
Bad example: I need to lose 100 pounds, stat!
Good example:Ineed to lose 30pounds. Iplan tò see a nutritionist to see how this can
be possible.
d. R-Relevant
You know yourself better than anyone. Hence, you would know whether or not your
goal issignificant to you. Your passion for your goal is what will drive youto achieve
it.
Bad example: Losing 30 pounds might make me popular!
Good example: My doctor advised that I need to lose at least 30 pounds before Ican
qualify for the organ donor program.
T-Time Bound
Time is a crucial factor to consider in setting objectives. Normally, short-term goals
span a period from days to approximately a year. You do not want the period of time
allotted to reach an end to be too long that you end up losing sight of your goals.
Breaking down your goal into milestones or periods should help. In setting your
objective, you may need to create a timetable to reflect these milestones.
Badexample:I need to lose 30 pounds in a week!
Good example: The nutritionist said that Ican lose up to two pounds a week if Ifollow
the diet and exercise regimen she laid out for me, that would give me at least eight
pounds per month and approximately 30 pounds in four months!

Lesson1 What is a Misslon Statement? 39


GUIDE QUESTIONS
1. What is a vision statement?
2. How does the vision
statement differ from the
mission statement?
3. What is the importance of
creating a vision state
ment?
40 CHAPTER FOUR BUSINESS PLAN BASICS
Lesson 2
What is a Vision
Statement?
n the previous lesson, we mentioned that the mission is anchored in the past (what a
company is good at). Alfred Marcus Management Strategy, weighs in on the vision as
well, stating that the vision is where a company wouldlike togo and what it would
like to be good at in the future.
By the word itself, the vision is something that we set our sights to. It is what we
want to achieve. Often, the vision statement is worded to inspire the reader to go for
the gold.
It acts much the same way an inspirational message or pep talk wouldit motivates
the reader, but to add to that, it sets the tone and direction of the company. It answers
the questions "Where am I headed?" or "What do I want (to be)?"
The vision is a motivational statement which is also time bound. The reason for this
is that it is a goal you set your sights on. After some time, you achieve this particular
vision and have to rethink and reinvent yourself and set your sights on a new one.
Vision 2020: Inspire the World, Create ihe Furure.
Samsung Electronics
Source:www.samsung.com/ph/aboutsamsung/
sansungelectronicsision2020.htm!
people?
Vision
&
STRATEGY
devebpnent
GoalMarkot1ng! Partner
 The vision statement is linked to the mission statement. This is also why Some
statements are lumped together as mission-vision statements. As seen below, the mission
of Samsung Electronics provides further information on how to attain the vision
indicated on the opposite page.

Mision:To inspire theworld with innovative technologies,

products and detgns that enrich peoples lives and
contribute to a socially responsible, sustainable future.
Samsung Electtontcs

Source:www.samsung.com/phlaboutsamsung/
samsungelectronics/vision2020.html

Activity
Fillin the blanks.
By (time period),
(you) will

(vision/goal/objective).

Lesson 2 What is a Vision Statement? 41

 Lesson 3

What are Core Values?

GUIDE QUESTIONS The core values state the principles, standards, ethics, morals, ideals, or
1. What are core values?
2. How do core values differ
from a mission statement
T philosophies a firm, company, or corporation upholds and adheres to.
These core values may be found together with or following the mission
statement. The Coca Cola Company states that "(our) values serve as a compass for our
and a vision statement?
actions and describe how we behave in the world."
3. Why is it important to es Example:
tablish an enterprise's core
values?

Company Resorts World Manila Coca Cola Company

Vision To be the premier Our vision serves as

world-class integrated the frarmework for our
entertainment and tourism Roadmap and guides every
destination in Asia. aspect of our business by
describing what we need
toaccomplish in order
tocontinue achieving
sustainable, quality growth.
People: Be a great place
to work where people
are inspired to be the
best they can be.
Portfolio: Bring
to the world
a portfolio of quality
beverage brands that
anticipate and satisfy
people's desires and
needs.
Partners: Nurture a
winning network
of customers and
suppliers, together we
Create mutual, enduring
value.
Planet: Be a responsible
citizen that makes
adifference by
helping build and
Support sustainable
Communities.
Profit: Maximize
long-temreturn to
shareowners while
being mintful of our
overallresponsibilities.
Productivity: Be a highly
effective, lean and fast
moving organization.

42 CHAPTER FOUR BUSINESS PLAN BASICS

 To thrill the world. Our Roadmap starts with
Mission
To set the benchmark our mission, which is
for service excellence. enduring. It declares our
Toempower our people purpose as a company
to realize their full and serves as the standard
potential. against which we weigh our
actions and decisions.
To refresh the world.
Toinspire moments
of optimisrn and
happiness.
Tocreate value and
make a dfference.

Core Values Inspiring Excellence Qur values serve as a

Innovation is in our DNA. compass for our actions arnd
We live to "wowify:" describe how we behave in
Mediocrity is our enemy. the world.
Leadership: The courage to
Unyielding Integrity shape a better future
We do what is right.
Collaboration: Leverage
True Compassion collective genius
We genuinely care for our Integrity: Be real.
guests, ourteam and other Accountability: If it is to be,
stakeholders. it's up to me.
Passion: Committed in
heart and mind
Diversity: As inclusive as
Our brands
Quality: What we do, we do
well.

Source http//www.wmanila.com/ http//www.coca-mission

Vision and-valuescolacompany.
com/our- company/
mission-vision-values

Activity
Enumerate five core values of your would-be business. Describe or explain each core
value that you identify.

Lesson 3 What are Core Values? 43

 Lesson 4

What is the Difference

Between a Mission
Statement and a Vision
Statement?
GUIDE QUESTIONS The previous lessons defined and provided examples of whata mission staternent
1. What are the key differ and a vision statement are and can be; the table below sums up and provides a
ences between a mission
comparison between a mission statement and a vision statement.
statement and a vision
statement?

2. Why do you think is it A Mission Statement.. A Vision Statenent..

important to acknowledge
the differences between a
In creating the mission statement,you In creatingthe vision statement. you must
missiorn statement anda
must try toanswer the following questions: try to answer the following question:
vision?
Who am ? Where am Iheaded?
What am Ihere for? Why amlhere? Where do Iwant to go?
What am ldoing? Howdo Iget there?
Why am i doing this?

Is time bound: Is time bound:

It looks at your present situation with the It acknovwledges the present but looks
future in mind forward into the future

Illustrates goals, purpose, and values llustrates goals, purpose, and values
Aims to inform (informative) Aims to inspire (inspirational)

CHAPTER FOUR BUSINESS PLAN BASICS

Activity
ldentify the key differences between a mission statement and a vision statement:
1.

3.

4.

ASSESSMENT
PART I. Proposal
Applying the concepts and principles discussed in this chapter and recalling your previous
ABM courses, prepare a proposal for a potential business enterprise you would like to set
up. Be sure to include the following information:
Proposed enterprise (name, nature, etc.)

Rationale (or your basis for selecting or identifying this product/service/enterprise)

Mission, vision, and core values

What is your proposed enterprise's mission? Compose a mission statement for your
enterprise.

Where do yousee your enterprise in the future? Formulate avision statement for your
enterprise.

Lesson 4 What is the Difference Between a Mission Statement and a Vision Statement? 45
 What core values will your enterprise embody and uphold? Give at least three and
explain each.

Feasibility
Justify the need for or the viability ofyour proposed product/service by presenting the
analysis framework/methodology you used in deducing this need or coming up with
the product/service. Put into consideration the market,operations, and financials.
Market. What sets your product/service/enterprise apart from the rest of the
market players? Who are the potential users/consumers/market of your product/
service?

Operations. What technology, procedures, and activities would producing/perfor

ming your product/service entail?

Financials. What possible financial allocations would be necessary to perform each

process in your operations? Would the cost of production still allow for proñt?

46 CHAPTER FOUR USNESS PLAN BASICS