EVER JEAN A.

JAVILLO MM 507

JUNE 30, 2012

Chapter 2 The Business Mission

Strategic Management: Concepts and Cases. 8th edition Fred R. David

TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES - MANILA

Fred R. David Prentice Hall

Ch. 2-2

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 and Evaluating Mission Statements

Chapter 2 The Business Mission

Vision & Mission

Vision describes where we are going. Mission describes what we are going to do to get there

An organization's Vision sets A Mission Statement is a more specific description of out its aspirations for the what the organization actually future. The Vision is the does - its contribution to the 'dream' of the future, a world and society - so that picture painted in words. employees, customers and other stakeholders know what the business needs to excel at.

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Vision

Vision statement answers the question:

What do we want to become?

Chapter 2 The Business Mission

Vision

Vision is the art of seeing things invisible -- Jonathan Swift The very essence of leadership is that you have to have vision. You cant blow an uncertain trumpet. -- Theodore Hesburgh

Chapter 2 The Business Mission

Vision
Clear vision Provides foundation for comprehensive mission statement Vision statement developed first Short preferably one sentence Broad management involvement

Chapter 2 The Business Mission

Vision Statements

Chapter 2 The Business Mission

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Mission Statements
Mission statement answers the question:

What is our business?

Chapter 2 The Business Mission

Peter Drucker

The father of modern management

Peter Ferdinand Drucker (November 19, 1909 November 11, 2005) was an influential writer, management consultant, and selfdescribed social ecologist.

A business is not defined by its name, statutes, or articles of incorporation. It is defined by the business mission. Only a clear definition of the mission and purpose of the organization makes possible clear and realistic business objectives."

Mission Statements
Recent Data indicate that:

90% of all companies have used a mission statement sometime in the previous five years.

Chapter 2 The Business Mission

Mission Statements
Mission Statement:

Enduring statement of purpose Distinguishes one organization from another in similar enterprises Declaration of an organizations reason for being

Chapter 2 The Business Mission

Mission Statements
Mission Statements also referred to as:

Creed statement Statement of purpose Statement of philosophy Statement of business principles

Chapter 2 The Business Mission

Mission Statements
Mission Statements

Reveal what an organization wants to be and whom it wants to serve Essential for effectively establishing objectives and formulating strategies

Chapter 2 The Business Mission

Mission Statement of TUPT

Provide continuous training development and advancement of highly qualified and competent technical manpower for national and global and socio-economic and industrial growth/progress and prosperity. Develop globally competitive technicians, engineers and technology-oriented managers Conduct researches that will support enhance existing technical knowledge technology and

Provide quality extension service for the community and industry, and Implement realistic resource generation

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Chapter 2 The Business Mission

Importance of Mission

Unanimity of purpose within the organization Basis for allocating resources Establish organizational climate Focal point for direction Translate objectives into work structure Cost, time and performance parameters assessed and controlled
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Chapter 2 The Business Mission

Mission Characteristics
A Declaration of Attitude Effective mission statements: Broad in scope Not excessively specific Finely balanced between specificity & generality Arouse positive feelings and emotions Motivate readers to action Generate the impression that firm is successful, has direction, and is worthy of time, support, and investment Reflect judgments re: future growth

Basis for generating & screening strategic options

Chapter 2 The Business Mission

Customer Orientation
According to Vern McGinnis, mission should: Define what the organization is Define what the organization aspires to be Broad enough to allow for creative growth Distinguish the firm from all others Serve as framework to evaluate current activities Stated clearly so that it is understood by all

Chapter 2 The Business Mission

A good mission statement reflects the anticipations of customers. Identify customer needs Provide product/service to satisfy needs
AT&Ts mission focuses on communications, not telephones Exxons mission focuses on energy, not on oil and gas

Chapter 2 The Business Mission

Social Policy & Mission

Managerial philosophy and thinking at the highest levels in the organization reflect social policy. Affects development of vision & mission Responsibilities to consumers, environmentalists, minorities, communities, & other groups Social policy should be integrated in all strategicmanagement activities. Mission statement is an effective instrument for conveying the social responsibility of the firm.

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Chapter 2 The Business Mission

Components of Mission
Mission statements vary in Length Content Format Specificity

Must include the 9 elements, as the mission statement is the most public and visible part of the strategic-management process.

Chapter 2 The Business Mission

Mission Components
1. 2. 3. 4. 5. 6. 7. 8. 9. Customers Products or services Markets Technology Survival, growth, and profitability Philosophy Self-concept Concern for public image Concern for employees

Chapter 2 The Business Mission

Components of Mission
Components of mission and corresponding questions to be answered: Customers:

Who are the firms customers?

Products or services:

What are the firm's major products or services?

Chapter 2 The Business Mission

Components of Mission

Markets:

Geographically, where does the firm compete?

Technology:

Is the firm technologically current?

Chapter 2 The Business Mission

Components of Mission
Concern for survival, growth, and profitability:

Is the firm committed to growth and financial soundness?

Philosophy:

What are the basic beliefs, values, aspirations, and ethical priorities of the firm?

Chapter 2 The Business Mission

Components of Mission
Self-concept:
What is the firms distinctive competence or major competitive advantage?

Concern for public image:

Is the firm responsive to social, community, and environmental concerns?

Concern for employees:

Are employees a valuable asset of the firm?

Chapter 2 The Business Mission

"Our mission: to inspire and nurture the human spirit one person, one cup and one neighborhood at a time."

To accomplish Starbucks has guide all of its go about their

its mission, principles that employees as they daily business:

Our Coffee It has always been, and will always be, about quality.
Chapter 2 The Business Mission

Starbucks Coffee Mission Statement:

Our Partners We always treat each other with respect and dignity. And we hold each other to that standard.

Our Customers When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers even if just for a few moments.
Our Stores Its about enjoyment at the speed of life sometimes slow and savored, sometimes faster. Always full of humanity. Our Neighborhood We can be a force for positive action bringing together our partners, customers, and the community to contribute every day. Our Shareholders - We are fully accountable to get each of these elements right so that Starbucks and everyone it touches can endure and thrive.
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TUP Taguig Mission and Vision Mission

Provide continuous training development and advancement of highly qualified and competent technical manpower for national and global and socio-economic and industrial growth/progress and prosperity. Develop globally competitive technicians, engineers and technologyoriented managers Conduct researches that will support technology and enhance existing technical knowledge Provide quality extension service for the community and industry, and Implement realistic resource generation

Vision
The Technological University of the Philippines Taguig Campus shall be a center of excellence for technology and engineering education in the country.

References:

Strategic Management: Concepts and Cases. 8th edition Fred R. David

www.wikipedia.com www.google.com http://www.maersksupplyservice.com/AboutUs/Pages/Finan cials.aspx

Chapter 2 The Business Mission