Chapter 2 The Business Vision & Mission

Strategic Management: Concepts & Cases 11th Edition Fred David

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Vision

Agreement on the basic vision for which the firm strives to achieve in the long run is critically important to the firms success.

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Vision

What do we want to become?

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Vision

Clear Business Vision Comprehensive Mission Statement

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Vision & Mission

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

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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

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Vision Statement Examples

The Vision of USGS is to be a world leader in the natural sciences through our scientific excellence and responsiveness to societys needs

-- U.S. Geological Survey (USGS)

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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 beingevery day!

-- Atlanta Web Printers, Inc.

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Mission Statements

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

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Mission Statements

What is our business?

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Mission Statements

Enduring statement of purpose

Distinguishes one firm from another Declares the firms reason for being

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Mission Statements
Also referred to as:

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

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Mission Statements

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

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Mission Statements

Essential for effectively establishing objectives and formulating strategies

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Vision & Mission

Many organizations develop both vision & mission statements

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Vision & Mission

Profit & vision are necessary to effectively motivate a workforce

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Vision & Mission

Shared vision creates a community of interests

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Developing Vision & Mission

Clear mission is needed before alternative strategies can be formulated and implemented

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Developing Vision & Mission

Participation from diverse managers is important in developing the mission

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Mission Statement Examples

It is the California Energy Commissions 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

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ProPakistani
Mission Throughout, ProPakistani remained intact with its commitment to bring To promote Pakistans Telecom and IT industry by not only promoting positive things, but also by providing transparent picture of industry for a better environment and eventually Developed Pakistan Unbiased Reporting; supported by facts and figures instead of fiction. To Inform & Educate readers by notifying them about latest cellular packages, tutorials, telecom FAQs, reviews, tips, tricks and anything that encircles Telecom and IT To Protect Consumer rights by bringing those elements to front that incline to violate
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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

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Importance of Mission
Benefits from a strong mission

Unanimity of Purpose

Resource Allocation

Mission
Organizational Climate Focal point for work structure

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Effective Missions

Broad in scope Generate strategic alternatives Not overly specific Reconciles interests among diverse stakeholders Finely balanced between specificity & generality

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Effective Missions

Arouse positive feelings & emotions Motivate readers to action Generate favorable impression of the firm

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Effective Missions

Reflect future growth

Provide criteria for strategy selection

Basis for generating & evaluating strategic options Are dynamic in nature

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Vision & Mission

Research results are mixed, however, firms with formal mission statements generally see a:

2x average return on shareholders equity Positive relationship to company performance 30% higher return on certain financial measures

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Customers

Products Services

Markets

Technology Employees

Mission Elements
Survival Growth Profit Self-Concept Philosophy

Public Image

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PepsiCo Mission
PepsiCos 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.

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Ben & Jerrys Mission

Ben & Jerrys 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 communitylocal, national and international.
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Mission Statement Evaluation Matrix

COMPONENTS Concern for Survival, Growth, Profitability

Organization

Customers

Products Services

Markets

Technology

PepsiCo Ben & Jerry's

Yes No

No Yes

No Yes

Yes Yes

No No

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Mission Statement Evaluation Matrix

COMPONENTS

Organization

Philosophy

SelfConcept

Concern for Public Image

Concern for Employees

PepsiCo Ben & Jerry's

Yes No

No Yes

No Yes

No Yes

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For Review (Chapter 2)

Key Terms & Concepts
Concern for Employees Customers

Concern for Public Image

Survival, Growth, & Profitability Creed Statement

Markets
Mission Statement Components Managerial Philosophy
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For Review (Chapter 2)

Key Terms & Concepts
Self Concept Stakeholders

Social Policy

Vision Statement

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Mission statment
The Bank of New York We strive to be the acknowledged global leader and preferred partner in helping our clients succeed in the world's rapidly evolving financial markets. Dean Foods Corporation The Company's primary objective is to maximize long-term stockholder value, while adhering to the laws of the jurisdictions in which it operates and at all times observing the highest ethical standards.
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Mission Statement
Fedex Corporation FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards.

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