Chapter 2

The Business Vision and Mission

From Book: Strategic Management ( Concept and Cases) 14th Edition
Author Dr. Fred
BY
FAROOQ
IRFAN
 About Vision
What is vision Statement?
What do we want to become answering this question is synonymously answering a vision
statement.
Why Vision before Mission Statement?
Divergent Views when Making a vision it align interest of all stakeholder specially employees.
 Vision Statement of General Motor
Vision is to be the world leader in transportation products and related services.
Importance of vision Statement
It create a basis for your Mission Statement to be made by considering vision Statement
Align interest of all stakeholder
Shows, where do you want to see yourself in future?
Vision statement is a motivating element for organization
 About Mission Statement
By answering a question what is our business is synonymously answering what is our mission
According to Peter Drucker Father of modern management.
Mission Statement can be called creed statement a statement of purpose, philosophy and belief.
Most Mission Statement are written according to the criteria set by Peter Drucker Father of
Management.
Developing Process of Vision Statement
and Mission Statement
Input from all stakeholder ( Divergent views) while making a vision statement and mission
statement
Most input should be taken from strategists. strategists are people who serve in many
organization. Set on many board of the organizations, have a wide variety of experiences.
Vision statement should be short such as one sentence while Mission Statement should not be
less than 100 words and nor does lengthy.
Both Mission and vision Statement should be eye attractive.
Most mission statements are made according to the criteria set by Peter Drucker father of
modern management.
 Importance Of Mission Statement
Firms using mission statement have higher 30% return on financial measure.
Provide Unity in direction and Purpose.
Facilitate in formulating policies ,Short term objectives, annual objectives and strategies.
Used In facilitating How to and How much resources should be allocated?
 Characteristics of Mission Statement
It differentiate one organization from other.
What it wants to be and Who to serve (Customers)
What Markets to target?
Reconciliatory, Who are will be the stakeholder what makes one stakeholder different from
other?
Components of Mission Statement
Customers: Who will be the Customers?
Market: What Market to Target?
Technology: What Technology to be used?
Growth: Is firm Committed to growth in all aspects?
Philosophy: What are the firm belief, values and what it aspire to be?
Self Concept: What are major competitive advantage of firm?
Corporate Social Responsibility: Does firm value corporate social responsibility
Concern for Stakeholders
 Evaluation of Mission Statement
Evaluation Against the component of mission statement
How good is mission statement to be known against the components such as Concern for
employee , Market, Technology, Purpose, Self- concept, Customers, Concern for growth,
Philosophy and Concern for public image