The Business Vision and Mission

Chapter-2

“A business is not defined by its name, statutes, or articles of incorporation. It is defined by the business mission. Only a clear definition of the mission & the purpose of the organization make possible clear & realistic business objectives” Peter Drucker

“A corporate vision can focus, direct, motivate, unify, & even excite a business into a superior performance. The job of a strategist is to identify & project a clear vision” John Keane

“The job of a strategist to see the company not as it is …. but as it can become.” John W. Teets Chairman of Greyhounds.Inc.

The Purpose & Objectives of The Chapter
 Tools

& Concepts  Role of Vision & Mission  The Importance Of Process

Understanding Vision & Mission Statement
A

new business is a collection of ideas  Management Philosophy  Is profit the primary corporate motivator • These ideas underlie the vision & mission statements.  Living documents  Part of all important documents

The Vision Statement
 Desirable  Long

future state

term  framed first  Be short  In a global environment

The Mission Statement (creed, purpose, philosophy, beliefs)
 What

is the organization’s business  Reason for being, statement of purpose  More associated with present & with behavior  Not designed to express concrete ends but to provide motivation, direction, image, tone & a philosophy to guide the enterprise

The Process of developing a Mission Statement:- the first step in SM
Involve as many managers as possible. • Reading material • Statements • Merged & referred back • Communication

Importance of Vision & Mission Statements
 Commonality A

cause for motivation  Help in formulation & implementation of strategies  Performance  Sets tone for organizational culture & climate

Essential for setting priorities, objectives, strategies, plan, allocation of resources. Starting point for design of managerial jobs, managerial structures etc.(a change in mission / vision leads to changes in these)  Alignment of short term & long term interests

Mission Statement Components:- A Frame Work for writing &Evaluating Statements
        

Customers Product or services Markets Technology Concern for survival, growth, and profitability Philosophy Self concept Concern for public image Concern for employees

Some Further Characteristics
 Broad • • •

in scope Define what the organization is & what it aspires to be Distinguish it from others Frame work for evaluating both current & prospective activities Be clearly & simply stated

 

 

Reflects the anticipations of customers & identify the utility of products Recommended length Business is being conducted in socially responsible way Arouses a positive feeling & motivates readers to action. Creates impression Criteria for selecting among alternate strategies.

Comparison
Mission Statement of Pepsi:- to increase the value of our shareholders’ investment. We do this through sales growth, cost controls, & wise investment resources. We believe our commercial success depends upon offering quality & value to our consumers & customers; providing products that are safe, wholesome, economically efficient, & environmentally sound; & providing a fair return to our investors while adhering to the highest standards of integrity

 Dell:-

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 & company accountability, best in class service & support; flexible customization capability; superior corporate citizenship[; financial stability

The Bellevue Hospital (BH) Vision  The BH is the leader in providing resources necessary to realize the community’s highest level of health throughout life Mission  The BH , with respect, compassion, integrity & courage, honors the individuality & confidentiality of our patients, employees, & community, & is progressive in anticipating & providing future health care services

John Deere(JD), Inc Vision  JD is committed to providing genuine value to the Company’s stake holders, including our customers, dealers, shareholders, employees & communities. In support of that commitment, Deere aspires to  Grow & pursue leadership positions in each of our businesses  Extend our preeminent leadership position in the agriculture equipment market worldwide  Create new opportunities to leverage the John Deere brand globally Mission  JD has grown & prospered through a longstanding partnership with the world’s most productive farmers. Today, JD is a global company with several equipment operations & complementary service businesses. These businesses are closely interrelated, providing the company with significant growth opportunities & other synergistic benefits.