Chapter Two

The Business Vision

and Mission
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Education Inc. publishing as Prentice Hall
 Chapter Objectives
1.Describe the nature and role
of vision and mission
statements in strategic
management.
2.Discuss why the process of
developing a mission
statement is as important as
the resulting document.
3.Identify the components of
mission statements.
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4. Discuss how clear vision
and mission statements can
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benefit other strategic-
management activities.
5. Evaluate mission
statements of different
organizations.
6. Write good vision and
mission statements
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 VISION ANSWERS - What
Do We Want to Become?
VISION MEANING
CRITERIA/CHARACTERISTICS
• A vision statement should

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• The vision statement
answer the basic question,
“What do we want to become?” should be:
• short,
• A vision is a vivid mental image of
what you want your business to be at • preferably one sentence,
some point in the future, based on your and
goals and aspirations. • Many managers if
• A vision statement captures, in writing, possible should have
the essence of where you want to take input and involved into
your business, and can inspire you and developing the statement
your staff to reach your goals. • This will allow views 2-3
from all levels of
management
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 Vision Statement Examples

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 MISSION ANSWERS -What Is Our
Business?

MISSION STATEMENT
IN ADDITION, MISSION ALSO
Namely are: • reveals what an organization

• a declaration of an
organization’s “reason
for being.”
• Also called a creed statement, a
• answers the pivotal
question “What is our
business?”
• essential for effectively
establishing objectives
and formulating
strategies
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wants to be and whom it wants
to serve
statement of purpose, a
statement of philosophy, a
statement of beliefs, and a
statement of business principles
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 A Comprehensive Strategic-Management
Model

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 Vision AND Mission
• Shared vision creates a
commonality of interests that can

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lift workers out of the monotony of
daily work and put them into a new
world of opportunity and challenge.

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 The Process of Developing Vision and Mission Statements
–advice to managers and organizations

• Select several • Merge these

articles about these statements into a
statements and ask single document and

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all managers to read distribute the draft
these as background statements to all
information. managers
• Ask managers • Process should
themselves to create an “emotional
prepare a vision and bond” and “sense of
mission statement for mission” between the
the organization. organization and its
employees 2-8

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 Importance of Vision and
Mission Statements
1. To ensure unanimity of 4. To serve as a focal
purpose within the point for individuals to
organization identify with the

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2. To provide a basis, or organization’s
standard, for allocating purpose and direction
organizational resources 5. To facilitate the
3. To establish a general translation of
tone or organizational objectives into a work
climate structure
6. To specify
organizational
purposes
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CHARACTERISCTICS OF A MISSION • Second, a mission
STATEMENT statement needs to be
broad to reconcile
differences effectively
among, and appeal to, an
organization’s diverse
stakeholders

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 Benefits of Having a Clear
Mission and Vision

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 A Customer A mission statement
should also:
Orientation
serve as a framework
for evaluating both
current and prospective
A mission statement activities
should: be stated in terms
define what the sufficiently clear to be
widely understood

organization is and what
the organization aspires
to be
be limited enough to
exclude some ventures
and broad enough to
allow for creative growth
distinguish a given
organization from all
others
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throughout the
organization
• A good mission statement
reflects the anticipations of
customers.
• The operating philosophy of
organizations should be to
identify customers’ needs and
then provide a product or 2-12

service to fulfill those needs.

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 Mission Statement Components
1. Customers—Who are the 5.
firm’s customers?
2. Products or services—
What are the firm’s major 6.
products or services?
3. Markets—Geographically,
where does the firm 8.
compete?
4. Technology—Is the firm
technologically current?
5. Concern for survival, 9.
growth, and profitability—
Is the firm committed to
growth and financial
soundness?
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Philosophy—What are the basic
beliefs, values, aspirations, and
ethical priorities of the firm?
Self-concept—What is the firm’s
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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?
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 Characteristics of a
Mission Statement

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 Example Mission Statement
• Fleetwood Enterprises will lead the recreational
vehicle and manufactured housing industries (2, 7)

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in providing quality products, with a passion for
customer-driven innovation (1). We will emphasize
training, embrace diversity and provide growth
opportunities for our associates and our dealers (9).
We will lead our industries in the application of
appropriate technologies (4). We will operate at the
highest levels of ethics and compliance with a focus
on exemplary corporate governance (6). We will
deliver value to our shareholders, positive operating
results and industry-leading earnings (5). 2-15

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 Example Mission Statement
• We aspire to make PepsiCo the world’s (3)
premier consumer products company,

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focused on convenient foods and beverages
(2). We seek to produce healthy financial
rewards for investors (5) as we provide
opportunities for growth and enrichment to
our employees (9), our business partners
and the communities (8) in which we
operate. And in everything we do, we strive
to act with honesty, openness, fairness and 2-16

integrity (6).
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 Example Mission Statement
• Dell’s mission is to be the most successful
computer company (2) in the world (3) at

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delivering the best customer experience in
markets we serve (1). In doing so, Dell will
meet customer expectations of highest quality;
leading technology (4); competitive pricing;
individual and company accountability (6);
best-in-class service and support (7); flexible
customization capability (7); superior
corporate citizenship (8); financial stability (5).
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 Example Mission Statement
• Procter & Gamble will provide branded
products and services of superior quality and

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value (7) that improve the lives of the world’s
(3) consumers. As a result, consumers (1)
will reward us with industry leadership in
sales, profit (5), and value creation, allowing
our people (9), our shareholders, and the
communities (8) in which we live and work to
prosper.
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 Example Mission Statement
• At L’Oreal, we believe that lasting
business success is built upon ethical (6)

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standards which guide growth and on a
genuine sense of responsibility to our
employees (9), our consumers, our
environment and to the communities in
which we operate (8).

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 Your task is to write your
own personal mission
statement

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