What is vision

and mission in
strategic
management?

Class two
 Learning Outcomes

BE ABLE TO DEFINE MISSION AND SEE HOW VALUES ARE IMPORTANT UNDERSTAND THE ROLES OF
VISION. FOR MISSION AND VISION. VISION, MISSION, AND VALUES IN
THE P-O-L-C FRAMEWORK.
What are mission and vision statements?

• A mission statement defines the organization's business, its objectives, and how it will
reach these objectives. A vision statement details where the organization aspires to go.
Why does your company exist? What do you hope to accomplish in the next several
years?
What are the 9 components of
mission statement in strategic
management?

• (1) customers; (2) products or services; (3)

markets; (4) technology; (5) concern for
survival, growth, and profitability; (6)
philosophy; (7) self-concept; (8) concern for
public image; and (9) concern for employees.
What are the 3 parts of a
vision statement?

• It's comprised of three parts: what you do,

how you do it, and why you do it. A vision
statement outlines the company's long-term
goals and aspirations for the future in terms of
its long-term growth and impact on the world
Roles Played
by Mission
and Vision
Roles Played by Mission and
Vision
• The better employees understand an organization’s purpose, through its
mission and vision, the better able they will be to understand the strategy
and its implementation.
• Second, mission and vision create a target for strategy development. That
is, one criterion of a good strategy is how well it helps the firm achieve its
mission and vision.
• To better understand the relationship among mission, vision, and strategy,
it is sometimes helpful to visualize them collectively as a funnel.
• At the broadest part of the funnel, you find the inputs into the mission
statement.
• Toward the narrower part of the funnel, you find the vision statement,
which has distilled down the mission in a way that it can guide the
development of the strategy.
• In the narrowest part of the funnel you find the strategy —it is clear and
explicit about what the firm will do, and not do, to achieve the vision
Roles Played by Mission and
Vision

• Vision statements also provide a bridge between

the mission and the strategy.
• In that sense the best vision statements create
tension and restlessness with regard to the
status quo—that is, they should foster a spirit of
continuous innovation and improvement.
• For instance, in the case of Toyota, its “moving
forward” vision urges managers to find newer
and more environmentally friendly ways of
delighting the purchaser of their cars.
Roles Played by
Mission and Vision
• Third, mission and vision provide a
high-level guide, and the strategy
provides a specific guide, to the
goals and objectives showing
success or failure of the strategy
and satisfaction of the larger set of
objectives stated in the mission.
• In the cases of both Starbucks and
Toyota, you would expect to see
profitability goals, in addition to
metrics on customer and employee
satisfaction, and social and
environmental responsibility.