CHAPTER TWO

THE BUSINESS MISSION ,

VISION AND VALUES

05/24/2021 SM 1
"A corporate vision can focus, direct, motivate, unify,
and even excite a business into superior performance.
The job of a strategist is to identify and project a
clear vision."

John Keane

05/24/2021 SM 2
 Vision Vs Mission
Vision:
 An image of the future we seek to create
 A vision statement describes where an organization
wants to see itself in the future; in the next 10 or
20 years if everything goes as planned.
 A vision statement should answer the basic
question, “What do we want to become?”
 A clear vision provides the foundation for
developing a comprehensive mission statement.

05/24/2021 SM 3
 Sample Vision Statements
• Tyson Foods:- to be the world’s first choice
for protein solutions while maximizing
shareholder value.
(Good statement, unless Tyson provides non-
protein products)
• General Motor: to be the world leader in
transportation and related services.
(Good statement)

05/24/2021 SM 4
 Sample Vision Statements - Poor
• PepsiCo’s:- to continually improve all aspects of the
world in which we operate: environment, social,
economic creating a better tomorrow than today.
(Statement is too vague; it should reveal beverage and
food business)
• Dell: to create a company culture where environmental
excellence is second nature.
(Statement is too vague; it should reveal computer
business in some manner; the word environmental is
generally used to refer to natural environment so is
unclear in its use here)

05/24/2021 SM 5
 Sample Vision
• CBE: “To become a world-class commercial
bank by the year 2025”.

• DASHEN BANK: ‘‘In as much as Mount Dashen excels all

other mountains in Ethiopia, Dashen Bank continues to
prove unparalleled in banking services.’’

• NIB: “To become an Icon of Excellence and the leading

Commercial Bank in Ethiopia.”

• Ethiotelecom: “To be a world-class provider of telecom

services.”
05/24/2021 SM 6
 BENEFITS OF VISION
The benefits accruing to an organization
having a vision are:
 Good visions are inspiring and exhilarating.
 Visions represent a discontinuity, a step
function and a jump ahead so that the
company knows what it is to be.
 Good visions help in the creation of a
common identity, and a shared sense of
purpose.
 Good visions foster risk-taking and
experimentation.
 PROCESS OF ENVISIONING
• A well-conceived vision consists of two major
components
i. Core ideology: It defines the enduring
character of an organization that remains
unchangeable as it passes through the
technology, competition, or management
fads.
ii. Envisioned future: It also consists of two
components:
1. A 10-30 years audacious (general) goal.
2. A vivid description of what it will be like to
achieve that goal.
 CHARACTERISTICS OF VISION
 Shared view: Sharing of views across an
organization.
 Convincing nature: A vision statement should be
able to convince members of the organization.
 Reflect new realities: A vision statement should
recognize the complexity of changing business
trends, and it should be able to reflect new
realities.
 Lack of ambiguity
 Memorable and engaging wording
 Realistic aspiration
 Alignment with organizational values and culture
 MISSION

• Purpose, reason for being, the role of the

organization in the industry and/or society.
• Enduring statement of purpose
• Declares the firm’s reason for being
• A clear mission statement is essential for
effectively establishing objectives and
formulating strategies.

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Characteristics of a Mission Statement

• It should
 Be feasible
 Be precise
 Be clear
 Be motivating
 Be distinctive
 Indicate major components of strategy
 Indicate how objectives are accomplished
MISSION STATEMENT COMPONENTS
1. Customers: Who are the firm’s customers?
2. Products or services: What are the firm’s major products or
services?
3. Markets: Geographically, where does the firm compete?
4. Technology: Is the firm technologically current?
5. Concern for survival, growth, and profitability: Is the firm
committed to growth and financial soundness?
6. Philosophy: What are the basic beliefs, values, aspirations, and
ethical priorities of the firm?
7. Self-concept: What is the firm’s distinctive competence or
major competitive advantage?
8. Concern for public image: Is the firm responsive to social,
community, and environmental concerns?
9. Concern for employees: Are employees a valuable asset of the
firm?
 Mission - Examples
Dell: - To be the most successful computer company in the
world at delivering the best customer experience in markets
we serve.

L’ Oreal: - We believe that lasting business success is built

upon ethical standards which guide growth and on a genuine
sense of responsibility to our employee, our customers, our
environment, and to the communities in which we operate.

Ethiotelecom: “To provide world-class, modern and high quality

telecom services for all citizens equitably so as to transform
the multifaceted development of the country to the highest
level.
05/24/2021 SM 13
 Mission Examples
• CBE: We are committed to best  realize stakeholders'
needs through enhanced financial intermediation globally
and supporting national development priorities, by deploying
highly motivated, skilled and disciplined employees as well
as state-of-the-art technology. We strongly believe that
winning the public confidence is the basis of our success.
• Dashen Bank: ‘‘Provide efficient and customer focused
domestic and international banking services, overcoming the
continuous challenges for excellence through the
application of appropriate technology.’’
• NIB: “To provide customer focused, efficient and effective
full-fledged commercial banking services by utilizing
qualified, honest, motivated staff and state-of-the art
technology and thereby optimize stakeholders’ interest.”
05/24/2021 SM 14
 Mission Statement Evaluation Matrix
MISSION COMPONENTS
Concern for
Organization Products/ Survival,
Customers Markets Technology Employees
Services Growth,
Profitability
 CBE
         

DB

NIB

SM
 DIFFERENCE BETWEEN VISION AND MISSION
VISSION MISSION

 Category of intentions that are  Mission is the fundamental, unique purpose

broad, all inclusive and forward that sets a business apart from other firms of

thinking, its type and identifies the scope of its

operations in product and market terms.

 States aspirations for the firm  It states how it would achieve the vision of

without stating the means to the firm.

achieve them

 Dream, little hazy or intangible  Clear and Tangible.

 Guides in formulation of mission.  Guides in formulation of business

definition, goals and objectives.

 Futuristic in nature.  Current in nature.

Which comes first mission or vision? what is your
stand?

SM
 Which comes first?
 That depends. If you have a new start up business, new
program or plan to reengineer your current services,
then the vision will guide the mission statement and the
rest of the strategic plan.
 If you have an established business where the mission is
established, the mission guides the vision statement and
the rest of the strategic plan.
 Either way, you need to know your fundamental purpose
- the mission, your current situation in terms of internal
resources and capabilities (strengths and/or
weaknesses) and external conditions (opportunities
and/or threats), and where you want to go - the vision
for the future. It's important that you keep the end or
desired result in sight from the start.
SM
 Goals and Objectives

What are Strategic Goals?

• Strategic goals are statements of what
the organization wishes to achieve over
the period of the strategic plan (e.g.
over the next year, five years, ten
years).
05/24/2021 SM 19
 Goals
• A goal is a future expectation. It is something
the organization is trying to accomplish.
• The meaning of a goal is however subject to
many interpretations.
• It can be used in a very broad sense to refer
to the overall purpose or general objective of
an organization.
 Features of Goals
• Each organization, or group of individuals, has some goals.
• Goals may be broad or they may be specifically mentioned.
• Goals may be clearly defined or these may not be clear.
• Goals have hierarchy.
• Organizational goals have social sanction, that is, they are
created within the social norms.
• An organization may have multiple goals.
• Organizational goals can be changed; old goals may be
replaced by new ones.
• Goals address financial and non –financial issue.
• Goal facilitate reasoned trade –offs.
• Organizational calls for stretching the limits.
Organizational goals need to set by stretching the limit to
enhance organizational motivation.
 What Should Strategic Goals Reflect?
• The strategic goals should reflect :
• The general themes of your vision and mission.
• The business realities outside of the company (as
identified in environmental scan).
• The resources and capabilities internal to the
organization (also as identified in the environmental
scan).
In general it should reflect the strengths, weaknesses,
and opportunities and threats identified in your
SWOT analysis.
05/24/2021 SM 22
Cont’d…
 It needs the entire organization to be
aligned, or aimed at the achievement of the
strategic goals, and for this to happen they
need to be aligned with (or be consistent with
and in supporting of) all the other parts of
the strategic plan.

05/24/2021 SM 23
 Objective Setting
• Allow review and appraisal of achievement
• SMART
• Make clear:
 What is to be accomplished
 How much is to be accomplished
 By when it is to be accomplished
 By whom it is to be accomplished

05/24/2021 SM 24
 Goals vs. Objectives Summary
GOALS OBJECTIVES
Very short statement, Longer statement, more
few words descriptive

Broad in scope Narrow in scope

Directly relates to the Indirectly relates to the

Mission Statement Mission Statement

Covers long time period Covers short time period (1

(such as 10 years) year budget cycle)
05/24/2021 SM 25
 Values
• Values are beliefs which your organization's
members hold in common and endeavor to put
into practice.
• The values guide your organization's
members in performing their work.
Specifically, you should ask, "What are the
basic beliefs that we share as an
organization?"

05/24/2021 SM 26
 Values (Cont’d…)
 Values are often rooted in ethical themes, such
as honesty, trust, integrity, respect, fairness,
etc.
 Values should be applicable across the entire
organization
 Values may be appropriate for certain best
management practices – best in terms of
quality, exceptional customer service, etc.

05/24/2021 SM 27
 Values (Cont’d…)
• Examples of values include: a commitment to
excellent services, innovation, diversity, creativity,
honesty, integrity, and so on.
• By developing a written statement of the values of
the organization, group members have a chance to
contribute to the articulation of these values, as
well as to evaluate how well their personal values
and motivation match those of the organization.

05/24/2021 SM 28
 Values (Cont’d…)
• Ethiotelecom
 Customer-centric: We provide quick response to our
customers and employees in line with their interest and
values.
 Excellence: We are committed for quality and efficiency
so that we are able to ensure excellent customer
experience.
 Accountability: We carry out our activities with integrity,
transparency, honesty and full responsibility.
 Impartiality: We are committed to be impartial and serve
without any bias.
 Sharing: We always strive in synergy so as to accomplish
the mission of our company.
05/24/2021 SM 29
 Values (Cont’d…)
CBE
• Integrity
• Customer Satisfaction 
• Employees Satisfaction
• Learning Organization 
• Teamwork and Collaboration 
• Public Trust
• Value for Money
• Decentralization
• Corporate Citizenship
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 Values (Cont’d…)
NIB
 Loyalty;
 Transparency;
 Accountability;
 Honesty and
 integrity;
 Social responsiveness;
 Organizational excellence;
 Equal employment opportunity;
 Prudent and Professional banking practice and
 Competitive services and sustainable growth.
05/24/2021 SM 31
 Values (Cont’d…)
Dashen Bank
 Develop banking habit in the community
 Assist continuous growth of customers
 Sustainable growth and stability
 High integrity and accountability
 Esteemed customers satisfaction
 Non-stop openness for community access
 Brightened and trained employees
 Attend customers’ constructive outlook
 Normative confidentiality
 Keen to consciously build professionalism and service
quality
05/24/2021 SM 32
 Policies
• Goal/objective Refer what is to be done, polices focus
on how organizational objectives will be achieved.
• Polices provide a general guideline to action.
• Polices ensure that the decision will be consistent
with, and contribute to an objective.
• Policies are guides to decision making and address
repetitive or recurring situations.
• Policies are the means by which annual objectives will
be achieved.
• They are most often stated in terms of management,
marketing, finance/accounting, production/operations,
research and development, and computer information
systems activities.
• Polices should be clear and understandable,
stable over time and communicated to
everyone involved.
• They may be stated in positive and negative
terms. They must also allow for some
discretion.
 Procedures
• Whereas polices are general framework to attain the
organizational objectives, procedures are specific steps
required to achieve goals.
• Procedures show chronological sequences of required
action (show sequence of activities).
• They detail the exact manner in which certain activities
must be accomplished.
• They are found in all functions numerous at the lower level
and help in the implementation of polices (out line the how
of the decision).
• They cut across department when many people in the
functions are involved in the task.
• Unlike polices, they limit creativity and initiatives.
• Well-established procedures provide specific instructions
in handling organizational operations.
 Rules
• A rule is a statement that tends to restrict
actions or prescribe specific activities with no
discretion.
• A rule is a specification for actions that must
be taken, or must not be taken in particular
circumstances.
• They spell out specific required actions or no
actions, allowing no discretion.
• Restrict creativity and initiative.
• They are usually the simplest type of plan.
• They are designed to be clear and unambiguous.
• Rules are the principles that govern the
conduct or behavior or a person in an
organization or country.
• Regulations refer to the directives or
statute enforced by law, in a particular
organization or country
Program
• Is a statement of the activities or
steps needed to accomplish a single-use
plan.
• Budget. Budget refers to a statement
of expected results expressed in
numerical terms.
• It relates to a specific time span in the
future. It is used for allocation and
control of resources. It also called
financial plan/profit. It address issues
in very detail manner, and limit freedom.