CHAPTER 2

THE BUSINESS VISION AND MISSION

CHAPTER OBJECTIVES:
1. 1. Describe the nature and role of vision and mission statements in strategic management .
2. 2. Identify the components of mission statements.
3. 3. Evaluate mission statements of different organizations.
4. 4. Write good vision and mission statements.
5.
 W H AT D O W E WA N T TO B E C O M E ?

• It is especially important for managers and executives in any

organization to agree on the basic vision that the firm strives to achieve
in the long term.

• 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.
 WHAT IS OUR BUSINESS?

• Current thoughts on mission statements is based largely on guidelines set forth in the
midst 1970’s by Peter Drucker who is often called ”the father of modern management.”

• Drucker says that asking the question “What is our business?” is synonymous with
asking the question: “What is our mission?.”

• An enduring statement of purpose that distinguishes one organization from other similar
enterprises, the mission statement is a declaration of an organization’s reason for being.

• It answers the pivotal question ” What is our business?”

• A clear mission statement is essential for effectively establishing objectives and
and formulating strategies.
 THE PROCESS OF DEVELOPING
V I S I O N A N D M I S S I O N S TAT E M E N T S

• 1. Select several articles about these statements and ask managers to read these
as background information.
• 2. Ask managers themselves to prepare a vision and mission statement for the
organization.
• 3. A facilitator or committee of top managers should then merge these
statements into a single document
• 4. Distribute the draft statements to all managers.
• 5. A request for modifications, additions or deletions is needed along with a
meeting to revise the document.
 IMPORTANCE OF
VISION AND MISSION STATEMENTS

 To ensure unanimity of purpose within the organization

 To provide a basis or standard for allocating organizational resources
 To serve as a focal point for individuals to identify with the organization’s
purpose and direction
 To facilitate the translation of objectives into a work structure
 To specify organizational purposes to translate them into objectives in such a
way that cost, time and performance parameters can be assessed and
controlled.
 INDICATORS OF A GOOD MISSION STAT EME NT

 Describes an organization’s purpose, customers, products or services,

markets, philosophy and basic technology.
 Reflects the anticipations of customers
Rather than developing a product and then trying to find a market, the
operating philosophy of the organization should be to identify customers’ needs
and then provide a product or service to fulfill those needs.
 Identify the utility of the firm’s products to its customers
 UTILITY STATEMENTS RELEVANT IN
DEVELOPING A MISSION STATEMENT

• Do not offer me things.

• Do not offer me clothes, offer me attractive looks.
• Do not offer me shoes, offer me comfort for my feet and the pleasure
of walking.
• Do not offer me a house, offer me security, comfort and a place that is
clean and happy.
• Do not offer me books, offer me pleasure and the benefit of
knowledge.
• Do not offer me tools, offer me the benefits that come from making
beautiful things.
• Do not offer me things, offer me ideas, emotions, ambience, feelings
and benefits.
• Please, do not offer me things.
 MISSION STATEMENT COMPONENTS

• 1. customers
• 2. products or services
• 3. markets
• 4. technology
• 5. concern for survival, growth, and profitability
• 6. philosophy-
• What are the basic beliefs, values, aspirations and ethical priorities of the firm? 7. self-concept
• 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?
 BISU VISION & MISSION STATEMENT

• Vision: A premier Science and Technology university for the

formation of a world class and virtuous human resource for
sustainable development in Bohol and the country.
•  
• Mission: BISU is committed to provide quality higher education in
the arts and sciences, as well as in the professional and technological
fields, undertake research and development, and extension services for
the sustainable development of Bohol and the country.