business vision n mission

8/13/2019 Business Vision n Mission

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Copyright 2007 Prentice HallCh 2 -1

Chapter 2

The Business Vision & Mission

Strategic Management:

Concepts & Cases

11thEdition

Fred David


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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 the

firm strives to achieve in the long run is

critically important to the firms success.


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What do we want to become?

Vision


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Comprehensive

Mission Statement

Vision

Clear Business

Vision


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Shared Vision --

Creates commonality of interests Reduce daily monotony

Provides opportunity & challenge

Vision & Mission


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A national organization which represents its

members 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

be the 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

in the 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 printedcommunications business. The first choiceis the best choice, and being the bestiswhat Atlanta Webpledgesto work hard atbeingevery day!


-- Atlanta Web Printers, Inc.


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-- 90% of all companies have used a

mission statement in the previous five

years

Mission Statements


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What is our business?

Mission Statements


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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 both vision &mission statements


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Vision & Mission

Profit & vision are necessary to effectively

motivate a workforce


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Vision & Mission

Shared vision creates a community of

interests


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Developing Vision & Mission

Clear mission is needed before alternative

strategies can be formulated andimplemented


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Developing Vision & Mission

Participation from diverse managers is

important in developing the mission


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It is the California Energy Commissionsmission to assess, advocate, and act through

public/private partnerships to improve energysystems that promote a strong economy andhealthy 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.


-- The Bellevue Hospital


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John Deere has grown and prospered througha long-standing partnership with the worldsmost productive farmers. Today, John Deere

is a global company with several equipmentoperations and complementary servicebusinesses. These businesses are closelyinterrelated, providing the company withsignificant growth opportunities and other

synergistic benefits.


-- John Deere, Inc.


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Importance of Mission

Mission

Resource Allocation

Unanimity of Purpose

Organizational Climate

Focal point for work

structure

Benefits from a strong mission


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Broad in scope

Generate strategic

alternatives

Not overly specific

Reconciles interests among

diverse stakeholders

Finely balanced betweenspecificity & generality

Effective Missions


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Arouse positive feelings &

emotions

Motivate readers to action

Generate favorable

impression of the firm

Effective Missions


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Reflect future growth

Provide criteria for strategy

selection

Basis for generating &

evaluating strategic options

Are dynamic in nature

Effective Missions


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Define what the organization is

Define what it aspires to be

Limited to exclude some ventures

Mission & Customer

OrientationVern McGinnis

Broad enough to allow for growth

Distinguishes firm from all others

Stated clearlyunderstood by all


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Anticipates customer needs Identifies customer needs

Provides product/service to satisfy needs

Mission & Customer

Orientation

An Effective Mission Statement --


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Affects development of vision & mission

Responsibilities to

Consumers

Environmentalists

Minorities

Communities

Social Policy & Mission

Managerial philosophy shapes social policy --


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Social Policy & Mission

Social policy should be integrated in all

strategic-management activities

Mission should convey the social

responsibility of the firm


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Mission Statements

1. Fannie Mae

2. Proctor & Gamble

3. Intel Corporation

4. St. Paul Companies

5. Green Mtn. Coffee

6. Deer & Company

2005 Rated Best in Social Responsibility

7. Avon Products, Inc.

8. Hewlett-Packard Co.

9. Agilent Technologies

10.Ecolab, Inc.

11.Imation Corp

12.IBM


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2x average return on shareholders equity Positive relationship to company performance

30% higher return on certain financial measures

Vision & Mission

Research results are mixed, however,

firms with formal mission statements

generally see a:


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Mission

Elements

CustomersMarkets

Employees

PublicImage

Self-Concept Philosophy

Survival

Growth

Profit

Products

Services

Technology


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Copyright 2007 Prentice Hall

Ch 2 -39

PepsiCo Mission

PepsiCos mission is to increase the value of ourshareholders investment. We do this through sales

growth, cost controls, and wise investment

resources. We believe our commercial success

depends upon offering quality and value to ourconsumers and customers; providing products that

are safe, wholesome, economically efficient and

environmentally sound; and providing a fair return to

our investors while adhering to the higheststandards of integrity.


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Ch 2 -40

Ben & Jerrys Mission

Ben & Jerrys mission is to make, distribute and sellthe finest quality all-natural ice cream and relatedproducts in a wide variety of innovative flavors madefrom Vermont dairy products. To operate theCompany on a sound financial basis of profitable

growth, increasing value for our shareholders, andcreating career opportunities and financial rewardsfor our employees. To operate the Company in away that actively recognizes the central role thatbusiness plays in the structure of society by initiatinginnovative ways to improve the quality of life of abroad communitylocal, national and international.


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Ch 2 -41

Mission Statement Evaluation Matrix

COMPONENTS

Organizat ion Customers

Products

Services Markets

Concern for

Survival ,

Growth,

Prof i tabi l i ty Technology

PepsiCo Yes No No Yes No

Ben & Jerry's No Yes Yes Yes No


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Ch 2 -42

Mission Statement Evaluation Matrix

COMPONENTS

Organizat ion Phi losophySelf-

ConceptConcern forPubl ic Image

Concern forEmployees

PepsiCo Yes No No No

Ben & Jerry's No Yes Yes Yes


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Ch 2 -43

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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Ch 2 -44

Key Terms & Concepts

For Review (Chapter 2)

Self Concept Stakeholders

Social Policy Vision Statement

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