Chapter 2 The Business Vision and Mission - DR - Abdulkaremppt

The Best Way to Entrepreneurship
These slides have been amended by the instructor for the purpose of teaching.
Ch 1 -1 Copyright © 2011 Pearson Education

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- © 2009 Pearson Education, Inc.
2 Publishing as Prentice Hall
Strategic Management: Concepts
and Cases
By
Fred R. David
Chapter 2:
The Business Vision and
Mission
Ch 1 -3
Mission & vision differences V.I.S
Focus Vision Mission

The main Q what do we want to ?Why do we exist
?become ? What is our business
Long Must be short More longer, but brief

) one sentence if possible(
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V.I.S
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Vision Statement V.I.S
 What is the definition of vision ?
Vision is defined as the main target/goal that any

organization strive to achieve in the long term.
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Characteristics of vision statement V.I.S
• It should answer the question what do we want to become?

• It should be short (one sentence if possible).
• Written in clear and simple language.
• Challenging.
• Realistic.
• Optimistic and motivational.
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Vision Statement
The best way to be professional at writing

and evaluating business vision and mission
statements is by reading as much mission
and vision statements as possible.
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Vision Statements examples
“Our vision is to be the preferred world

leader in chemicals .”
(SABIC)
GOOD
“ Our vision is to shape tomorrow’s

financial map as a global gateway for
capital and investment .”
Dubai International Financial Centre (DIFC)
GOOD
Vision Statements examples (Cont’d)
To be the world leader in transportation

products and related services.
General Motors GOOD
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Mission Statements
V.I.S
Mission statement is defined as a brief description of

a company's fundamental purpose.
It answers the question, "Why do we exist?

Mission statement V.I.S
Why organizations must carefully develop a written mission

statement?
To keep the following benefits:-
To ensure unanimity of purpose within the organization.
To establish a general tone or organizational climate.
To facilitate putting the objectives and polices into actions.
To maximizing the efficiency of resource allocation process.
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Mission development as a process
Two ways to write VISION & MISSION statements:
Internally Consultant
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Other names of Mission Statements
V.I.S
Mission statements can also be referred to as:
• Creed statement.
• Statement of purpose.
• Statement of philosophy.
• Statement of business principles.
• Statement of definition.

V.I.S
Balance broad and specific.
Participation from many managers is important in developing the mission

statement. WHY?

A mission statement is a declaration of attitude
• Reflects an emotional bond.
• It must arouse positive feelings and emotion.
• It must generate a good impression that the firm is
successful, has direction, and is worthy of time.
• It must imply the growth directions in the future.
For more information see page 59
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Mission Components V.I.S
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, and growth—commitment to growth or financial
soundness?
6. Philosophy —What are the basic values, and ethical priorities of the firm?
7. Self-concept —What is the firm’s major competitive advantage?
8. Public image —Is the firm responsive to social, and environmental concerns?
9. Concern for employees —Are employees a valuable asset of the firm?
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A mission must be a customer orientation
• 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 furniture. Offer me comfort and the quietness of a

cozy place.
For more information see page 60

Examples of the nine components
Customers
We believe our first responsibility is to the doctors, nurses,

patients, mothers, and all others who use our products and
services. (Johnson & Johnson)
•To earn our customers’ loyalty, we listen to them, anticipate

their needs, and act to create value in their eyes.
(Lexmark International)
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Examples of the nine components (Cont’d)
Products or Services
•We are a unique marketing organization and distribution chain

operating across the middle east and north Africa region,
supplying local industries with their needs of specialty and
industrial chemicals, process products, equipment and
technology. (Reda Specialty Chemicals)
•PDO’s mission is to explore and develop oil and gas in a

sustainable manner to the benefit of all stakeholders.
(Petroleum Development Oman)
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Markets
Our emphasis is on North American markets, although global

opportunities will be explored. (Blockway)
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Technology
•We are actively developing advanced networks that will

enable people to develop, to learn to grow. (Etisalat)
•We will continually strive to meet the preferences of adult

smokers by developing technologies that have the potential to
reduce the health risks associated with smoking. (RJ Reynolds)
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Concern for Survival, Growth, and Profitability
•Inthis respect, the company will conduct its operations

prudently and will provide the profits and growth which will
assure Hoover’s ultimate success. (Hoover Universal)
•While we will be sensitive to the costs of our products and

services and aiming to optimize profitability and maintaining
a continued growth, the output quality of our products and
services are the hallmarks of our success. (Arab Supply and
Trading Company)
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Philosophy
•Our world-class leadership is dedicated to a management

philosophy that holds people above profits. (Kellogg)
•We are dedicated to providing high standards of ethics and

integrity in everything we do. (Dallah Group)
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Self-Concept
•We are bringing cutting edge technology and advanced

services to every country in which we operate by deploying our
true competitive advantage – our human resources – to the front
line. (Zain Telecom)
•Our history is full of almost 150 years of achievements, which

mark the growth of Gandour from a factory store to a leading
Fast Moving Consumer Goods producer, with various
production sites spread around the globe. (Gandour)
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Concern for Public Image
•We believe in responsible industry leadership, creating profitable

growth in harmony with environmental sustainability and
good corporate citizenship. (Tetra Pak Arabia)
•To contribute to the economic strength of society and

function as a good corporate citizen on a local, state, and
national basis in all countries in which we do business. (Pfizer)
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Concern for Employees
•To recruit, develop, motivate, reward, and retain personnel of

exceptional ability, character, and dedication by providing good
working conditions, superior leadership, compensation on
the basis of performance, an attractive benefit program,
opportunity for growth, and a high degree of employment
security. (The Wachovia Corporation)
•Toattract and retain high-caliber people, by providing a

working environment that encourages them to realize
their full potential. (Alghanim Group)
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Evaluating the mission statement
• There is no one best mission statement for a particular organization.
• Good judgment is required in evaluating mission statement.
• Not all companies covers all the nine components in their mission statement.
• The nine basic components serve as a practical framework for evaluating and
writing mission statement.
• The more components are present in mission statement, the more strong
statement it could be.
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Mission Statement Evaluation Matrix
Component 1 Component 2 Component 3 Component 4 Component 5 Component 6 Component 7 Component 8 Component 9
Concern for
Organiza. Products Survival, Concern Concern
Name or Growth, Self- for Public for •Total out
Customer Services Markets Technology Profitability Philosophy Concept Image Employees of 9
IKK
Isam K. Kabbani (IKK) Group

To provide our part of the Arab world with local and reliable services in a variety of
sectors and products. To create employment to thousand of personnel and in-house
training for hundreds of young Arab graduates in crucial sectors to the benefit of the
IKK Group, the graduates themselves and their own communities. To set a good
example of our basic business philosophy: “Hire well, train well, pay well and treat
well.”
Suggested by the author
Ch 2 -35

5
Concern for
Mission
2
Products
Statement Examples
6 7
Survival,
Growth,
8
Concern for 9
1 or 3 4 Profitability philoso Self- Public Concern for
Customers Services Markets Technology phy Concept Image Employees Total out of 9
Yes No Yes No Yes Yes No Yes Yes 5

Isam K. Kabbani (IKK) Group
To provide our part of the Arab world with local and reliable
services in a variety of sectors and products. To create
employment to thousand of personnel and in-house training for
hundreds of young Arab graduates in crucial sectors to the
benefit of the IKK Group, the graduates themselves and their
own communities. To set a good example of our basic business
philosophy: “Hire well, train well, pay well and treat well.”

Tutorial 1
Concern for
Pepsi
Co
We aspire to make PepsiCo the world’s premier consumer products company, focused
on convenient foods and beverages We seek to produce healthy financial rewards for
investors as we provide opportunities for growth and enrichment to our employees,
our business partners and the communities in which we operate. And in everything
we do, we strive to act with honesty, openness, fairness and integrity.

Ch 2 -37

Tutorial 1
Concern for
Pepsi
Co Yes Yes Yes Yes Yes Yes 6
We aspire to make PepsiCo the world’s (3) premier consumer products company,
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 integrity (6). (Statement lacks three components: Customers, Technology,
and Self-Concept Suggested by the author
Ch 2 -38

Tutorial 2
Concern for
Dell
Dell’s mission is to be the most successful computer company in the world at

delivering the best customer experience in markets we serve. In doing so, Dell will
meet customer expectations of highest quality; leading technology; competitive
pricing; individual and company accountability; best-in-class service and support;
flexible customization capability; superior corporate citizenship; financial stability.

Ch 2 -39

Tutorial 2
Concern for
Dell Yes Yes Yes Yes Yes Yes Yes Yes
Dell’s mission is to be the most successful computer company (2) in the world (3) at
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). (Statement lacks only one component: Concern for
Employees) Suggested by the author
Ch 2 -40

5
Concern for
2 Survival, 6 7 8 9
1 Products or 3 4 Growth, philosop Self- Concern for Concern for
Customers Services Markets Technology Profitability hy Concept Public Image Employees Total out of 9
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DIRECT QUESTIONS:
•Define “VISION”, “Mission”,
•In writing a mission statement it is highly recommended to include many managers as
possible, WHY?
Right or Wrong:
•A clear vision and mission positively enhance the organization performance.
• A mission statement provides an answer for the question “What do we want to be?”.
•A vision statement consists off of nine components.
•Having a clear vision and mission helps ensure unanimity of purpose within the
organization.
•As you have studied in the class, there are three ways to write a mission and vision
statement.
•“Why do we exist?” the answer of this question must be found in the mission statement.
•The mission component “Self-concept” is about the competitive advantage of the
organization.
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The Best Way to Entrepreneurship

Ch 1 -1 Copyright © 2011 Pearson Education

Ch 1 -3 Copyright © 2011 Pearson Education

Focus Vision Mission

Long Must be short More longer, but brief

 What is the definition of vision ?

Vision is defined as the main target/goal that any

• It should answer the question what do we want to become?

The best way to be professional at writing

“Our vision is to be the preferred world

“ Our vision is to shape tomorrow’s

To be the world leader in transportation

Mission statement is defined as a brief description of

It answers the question, "Why do we exist?

Ch 2 -16 Copyright © 2011 Pearson Education

Why organizations must carefully develop a written mission

To ensure unanimity of purpose within the organization.

To establish a general tone or organizational climate.

To facilitate putting the objectives and polices into actions.

To maximizing the efficiency of resource allocation process.

Two ways to write VISION & MISSION statements:

Mission statements can also be referred to as:

Ch 2 -20 Copyright © 2011 Pearson Education

Balance broad and specific.

Participation from many managers is important in developing the mission

Ch 2 -21 Copyright © 2011 Pearson Education

• Reflects an emotional bond.

• It must arouse positive feelings and emotion.

• It must generate a good impression that the firm is

successful, has direction, and is worthy of time.

• It must imply the growth directions in the future.

For more information see page 59

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, and growth—commitment to growth or financial

7. Self-concept —What is the firm’s major competitive advantage?

9. Concern for employees —Are employees a valuable asset of the firm?

• Do not offer me clothes. Offer me attractive looks.

• Do not offer me shoes. Offer me comfort for my feet and the

• Do not offer me a house. Offer me security, comfort, and a

• Do not offer me furniture. Offer me comfort and the quietness of a

Ch 2 -24 Copyright © 2011 Pearson Education

We believe our first responsibility is to the doctors, nurses,

•To earn our customers’ loyalty, we listen to them, anticipate

•We are a unique marketing organization and distribution chain

•PDO’s mission is to explore and develop oil and gas in a

Our emphasis is on North American markets, although global

•We are actively developing advanced networks that will

•We will continually strive to meet the preferences of adult

Concern for Survival, Growth, and Profitability

•Inthis respect, the company will conduct its operations

•While we will be sensitive to the costs of our products and

•Our world-class leadership is dedicated to a management

•We are dedicated to providing high standards of ethics and

•We are bringing cutting edge technology and advanced

•Our history is full of almost 150 years of achievements, which

Concern for Public Image

•We believe in responsible industry leadership, creating profitable

•To contribute to the economic strength of society and

Concern for Employees

•To recruit, develop, motivate, reward, and retain personnel of