Chapter 2

The Business Vision & Mission

 Mission statements are more about defining current roles, operations, and
objectives.
 Vision statements are more about setting a long-term aspirational direction.

Characteristics of a Vision Statement:

 Future-oriented: Describes where the organization wants to be in the future;

it’s aspirational.
 Inspirational: Motivates and inspires stakeholders by presenting an idealized
image of the future.
 Broad: Provides a wide scope without specifying how the vision will be
achieved.
 Abstract: More about the 'what' (the desired future state) than the 'how.'

Characteristics of a Mission Statement:

 Present-focused: Describes the organization's current business activities and

purpose.
 Practical: Focuses on how the organization serves its stakeholders today.
 Specific: Includes practical details about what the company does and for
whom.
 Concrete: More about the 'how' of achieving goals than the 'what.'

Effective Mission Statement:

 Customer Needs: predict’s and understands customer needs.

 Product/Service Offering: Delivers products/services that meet these needs.
 Value Demonstration: Demonstrates the practical benefits of its products to
customers.

Mission Statement:

 Purpose: Describes what the company does and its reason for existence.
 Clarity: Broad yet clear, easily understandable without detailed numbers or
objectives.
 Length: Concise, ideally under 250 words.
Components of a Mission Statement:

1. Customers: Who the company serves.

2. Products or Services: What the company offers.
3. Markets: Where the company operates.
4. Philosophy: The beliefs and ethical positions of the company.
5. Survival, Growth, Profits: The company’s basic goals.
6. Public Image: How the company wants to be viewed by the public.
7. Self-concept: How the company sees itself.
8. Employees: How the company views and treats its employees.
9. Technology: The tech the company uses or creates

Clear Business Vision (leads to) Comprehensive Mission Statement:

The image shows a relationship between a business vision and mission statement:

 Clear Business Vision: This is like a dream of what the business aims to be in
the future.
 Comprehensive Mission Statement: This is a detailed description of the
business’s purpose and how it plans to achieve that vision.

The arrow indicates that a clear vision leads to creating a comprehensive mission
statement. In simple terms, knowing what you want your business to become helps
you explain your business’s goals and plans.

A mission statement is a company’s declaration of its core purpose and focus that
remains unchanged over time. It answers, "What is our business?"

and usually includes:

Mission statement include’s

Company’s Aim:
 The company's aim.
Target audience:
 The target audience it serves.
Differentiation :
 It sets a company apart from others.
Reason for existing :
 It's a company’s declaration of its reason for existing
  It's often seen as a creed, purpose, philosophy, beliefs, and principles
statement.
 It defines the business for everyone.

Example of a Mission Statement: Imagine a company that makes camping cars and
houses. Their mission statement might say they aim to lead in quality and innovation,
care about customer needs, focus on team training, value different cultures and
ideas, and want to grow. They’ll use new technologies wisely, act ethically, and look
after their shareholders by making good money.

Vision and Mission: When a company keeps checking and updating its vision and
mission, treating them as guides for actions and attitudes, they can become a strong
part of its culture, helping it to succeed.

Importance of Vision and Mission:

1. Team Unity: A shared vision brings the team together.

2. Guidance for Actions: A clear mission helps in making and executing
decisions.
3. Role’s known
4. Cultural Integration: When these statements are an integral part of the
company culture, they guide everyday actions and decisions at all levels of the
organization..
5. Updating Regularly: Keeps vision and mission relevant and effective.

Motivation:

 Vision and profits are key to motivating employees.

Strategy:

 You need a clear mission to create good strategies.

Involvement:

 Many managers should help create the mission statement for better
commitment.
Steps for Creating Vision and Mission Statements:

1. Research: Managers educate themselves by reading relevant articles.

2. Individual Input: Each manager drafts their own vision and mission for the
company.
 3. Consolidation: Combine all individual drafts into a single document.
4. Feedback: Distribute the document to managers for suggestions.
5. Finalization: Hold a meeting to agree on and finalize the version together.

Benefits of Mission Statements:

 Unity: Provides a shared goal for everyone in the company.

 Culture: Shapes the company's character and values.
 Roles Known for People: Clarifies everyone's roles within the organization.
 Resources: Guides decisions on allocating resources like money and
personnel.
 Work Structure: Influences the organizational structure and operational
methods.
 Solving Differences: Offers a reference point for resolving internal conflicts.
 Evaluation: Serves as a benchmark for measuring success.
 Financial Performance: Potentially improves financial outcomes through
focused efforts.

Characteristics of Vision and Mission Statements:

 Unite the Team: Both aim to align the team around a common goal.
 Set Shared Expectations: Establish what the organization aspires to achieve
and how it operates.
 Support Core Values: Reflect and reinforce the core values of the company.
 Responsibility: Emphasize the company’s commitment to ethical behavior.
 Appropriate Scope: They are broad but avoid excessive detail, providing
general direction without limiting flexibility.
 Stakeholder Balance: Consider the needs of various stakeholders in the
organization’s strategies.
 Inspiration and Action: Motivate employees and stakeholders to engage
with the company’s goals.
 Reputation: Enhance the public perception of the company.
 Support Growth: Underpin the company's strategic growth plans.
 Strategic Decisions: Assist in selecting and evaluating strategic directions.
 Adaptability: Adapt to changes in the company or market conditions.

Can You Combine Them? While it is possible to combine the discussion of benefits
and characteristics when writing about vision and mission statements, it’s important
to maintain clarity about their distinct purposes:
When documenting these elements, clearly differentiating between the two helps
stakeholders understand how each contributes to guiding the organization's
strategic direction and daily operations.

A mission statement should clearly state the company's purpose, be easy to

understand, and distinguish the company from others. It should also allow room for
growth.

Mission and Customer Orientation: A good mission statement addresses and

anticipates customer needs by focusing on the value and benefits of its products and
services, rather than just the products themselves.

Utility to Customers: Customers seek experiences and benefits from products, such
as comfort from shoes, security from homes, and knowledge from books. A
company's mission should aim to enhance customers' lives beyond just selling
products.

Mission Statement:

 Purpose: Describes what the company does and its reason for existence.
 Clarity: Broad yet clear, easily understandable without detailed numbers or
objectives.
 Length: Concise, ideally under 250 words.

Effective Mission Statement:

 Customer Needs: predict’s and understands customer needs.

 Product/Service Offering: Delivers products/services that meet these needs.
 Value Demonstration: Demonstrates the practical benefits of its products to
customers.
Mission & Customer Orientation(direction or focus of something/meeting
need’s ):

 Purpose and Goals: Defines the company's purpose and future aims.
  Exclusivity: Clearly states what the company does and does not do.
 Flexibility: Flexible enough to accommodate future changes.
 Uniqueness: Differentiates the company from competitors.
 Evaluation Standard: Provides a benchmark for evaluating company actions.
 Clarity: Simple and clear for easy understanding.

Utility of firm’s Products:

The "utility of a firm's products" refers to the practical benefits and satisfaction
that these products provide to customers.
 Homes: Ensures safety and happiness.
 Clothing: Provides a sense of style.
 Shoes: Offers comfort and joy in walking.
 Furniture: Adds comfort to living spaces.
 Tools: Makes crafting enjoyable.
 Books: Educates and entertains.
 Music: Delivers relaxation and enjoyment.
 Experience Focus: Emphasizes delivering experiences and value beyond the
physical items.
 Enhancing Life: Products improve customers' daily lives.

Components of a Mission Statement:

1. Customers: Who the company serves.

2. Products or Services: What the company offers.
3. Markets: Where the company operates.
4. Philosophy: The beliefs and ethical positions of the company.
5. Self-concept: How the company sees itself.
6. Public Image: How the company wants to be viewed by the public.
7. Survival, Growth, Profits: The company’s basic goals.
8. Employees: How the company views and treats its employees.
9. Technology: The tech the company uses or creates.

Characteristics of a Mission Statement:

 Inspirational.
 Shows the benefit of products.
 Shows the company is socially and environmentally responsible.
 Includes all nine components mentioned.
  Is reconciliatory and enduring, meaning it balances different views and lasts
over time.
Declaration of Attitude: A "Declaration of Attitude" in a business context refers to a
statement that expresses a company's outlook or approach towards its goals, values,
and operations. It sets the tone for how the company behaves and interacts with its
stakeholders.

Key Points of a Declaration of Attitude:

 Broad Scope: Covers a wide range of aspects without being confined to

specific details.
 Strategic Flexibility: Allows for the generation of various strategic
alternatives.
 Balance: Maintains a fine line between being too vague and too detailed.
 Stakeholder Reconciliation: Addresses and harmonizes the interests of
different stakeholders.
 Emotional Engagement: Aims to evoke positive feelings and motivate action.
 Corporate Image: Creates a favorable impression of the company.
 Future-Oriented: Reflects aspirations for growth and provides a framework
for strategy selection.
 Strategic Framework: Serves as a foundation for developing and assessing
strategic options.
 Dynamic: Adaptable to changes in the business environment and market
conditions.