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Chapter 2The Business Vision & Mission

Strategic Management:Concepts & Cases

10th

EditionFred David

Stolen from:4AAC Batch 2008) Yahoogroups

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Chapter Outline

What do we want to become?

What is our business?

Importance of Vision and Mission Statements

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Chapter Outline ( contd )

Characteristics of a mission statement

Components of a mission statement

Writing & evaluating mission statements

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The last thing IBM needs right now is avision. (July 1993)

Vision

What IBM needs most right now is avision. (March 1996)

-- Louis V. Gerstner, Jr., CEO, IBM Corporation

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Vision

Agreement on the basic vision for which thefirm strives to achieve in the long run iscritically important to the firms success.

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What do we want to become?

Vision

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ComprehensiveMission Statement

Vision

Clear BusinessVision

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Shared Vision --

Creates commonality of interestsReduce daily monotonyProvides opportunity & challenge

Vision & Mission

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A national organization which represents itsmembers in all aspects of poultry and eggson both a national and international level.

Vision Statement Examples

-- U.S. Poultry & Egg Association

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The Vision of Manley Baptist Church is to bethe people of God, on mission with God,motivated by a love for God, and a love forothers.


-- Manley Baptist Church

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The Vision of USGS is to be a world leader inthe natural sciences through our scientificexcellence and responsiveness to societysneeds.


-- U.S. Geological Survey (USGS)

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To be the first choice in the printed

communications business. The first choice isthe best choice, and being the best is whatAtlanta Web pledges to work hard at being every day !


-- Atlanta Web Printers, Inc.

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-- 90% of all companies have used amission statement in the previous fiveyears.

Mission Statements

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What is our business?

Mission Statement

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Mission Statements

Enduring statement of purpose

Distinguishes one firm from another

Declares the firms reason for being

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Mission Statements

Creed statement

Statement of purpose

Statement of philosophy

Statement of business principles

Also referred to as:

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Reveal what an organization wants to be

and whom it wants to serve

Mission Statements

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Essential for effectively establishing

objectives and formulating strategies .

Mission Statements

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Vision & Mission

Many organizations develop bothvision & mission statements.

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Vision & Mission

Profit & vision are necessary to effectivelymotivate a workforce

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Vision & Mission

Shared vision creates a community ofinterests

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Developing Vision & Mission

Clear mission is needed before alternativestrategies can be formulated andimplemented

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Developing Vision & Mission

Participation from diverse managers isimportant in developing the mission.

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It is the California Energy Commissionsmission to assess, advocate, and act tothrough public/private partnerships to improveenergy systems that promote a strongeconomy and healthy environment

Mission Statement Examples

-- California Energy Commission

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The Bellevue Hospital, with respect,compassion, integrity, and courage, honors the

individuality and confidentiality of our patients,employees, and community, and is progressivein anticipating and providing future health careservices.

Mission Statement Examples

-- The Bellevue Hospital

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Importance of Mission

MissionResource Allocation

Unanimity of Purpose

Organizational Climate

Focal point for workstructure

Benefits from a strong mission

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Broad in scope

Generate strategicalternatives

Not overly specific

Reconciles interests amongdiverse stakeholders

Finely balanced betweenspecificity & generality

Effective Missions

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Arouse positive feelings &emotions

Motivate readers to action

Generate favorableimpression of the firm

Effective Missions

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Reflect future growth

Provide criteria for strategyselection

Basis for generating &evaluating strategic options

Are dynamic in nature

Effective Missions

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Define what the organization isDefine what it aspires to be

Limited to exclude some ventures

Mission & CustomerOrientation Vern McGinnis

Broad enough to allow for growthDistinguishes firm from all others

Stated clearly understood by all

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Anticipates customer needsIdentifies customer needsProvides product/service to satisfy needs

Mission & CustomerOrientation

An Effective Mission Statement --

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Affects development of vision & mission

Responsibilities to ConsumersEnvironmentalistsMinorities

Communities

Social Policy & Mission

Managerial philosophy shapes social policy --

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Social Policy & Mission

Social policy should be integrated in allstrategic-management activities.

Mission should convey the socialresponsibility of the firm

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Mission Statements

1. Alexander & Baldwin

2. Johnson & Johnson

3. American Express

4. Altria Group

5. United Parcel Service

2003 Rated Best in Social Responsibility(Wall Street Journal)

6. BP America

7. Procter & Gamble

8. Administaff

9. Medtronic

10. Merck

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2x average return on shareholders equity Positive relationship to company performance30% high return on certain financial measures

Vision & Mission

Research results are mixed, however,firms with formal mission statements --

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MissionElements

CustomersMarkets

Employees

PublicImageSelf-Concept Philosophy

SurvivalGrowthProfit

ProductsServices

Technology

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PepsiCo Mission

PepsiCos mission is to increase the value of ourshareholders investment. We do this through salesgrowth, cost controls, and wise investmentresources. We believe our commercial success

depends upon offering quality and value to ourconsumers and customers; providing products thatare safe, wholesome, economically efficient andenvironmentally sound; and providing a fair return to

our investors while adhering to the higheststandards of integrity.

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Mission Statement Evaluation Matrix

COMPONENTS

Organizat ion Customers

Produc ts

Services Markets

Concern fo rSurvival ,Growth ,

Profi tabi l i ty Technology

PepsiCo Yes No No Yes No

Ben & Jerry's No Yes Yes Yes No

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Mission Statement Evaluation Matrix

COMPONENTS

Organizat ion Phi losophy Self- Concept Concern forPubl ic Image Concern forEmployees

PepsiCo Yes No No No

Ben & Jerry's No Yes Yes Yes

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Key Terms & Concepts

For Review (Chapter 2)

Concern for Employees Customers

Concern for Public Image Markets

Survival, Growth, &

Profitability

Mission Statement

Components

Creed Statement Managerial Philosophy

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Key Terms & Concepts

For Review (Chapter 2)

Self Concept Stakeholders

Social Policy Vision Statement

ppt ch 02 10th ed

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