Chapter#02 STRATEGIC MANAGEMENT

Prepared by Marruhk Qureshi

E.mail# marruhkqureshi@gmail.com

VISION AND MISSION ANALYSIS

A vision statement should answer the basic question, “What do we want to become? A clear
vision provides the foundation for developing a comprehensive mission statement. Many
organizations have both a vision and mission statement, but the vision statement should be
established first and foremost. The vision statement should be short,

What Is Our Business?

•Mission statement • a declaration of an organization’s “reason for being.” • answers the pivotal
question “What is our business?” •essential for effectively establishing objectives and
formulating strategies

Mission Statement

•Mission statement •reveals what an organization wants to be and whom it wants to serve • Also
called a creed statement, a statement of purpose, a statement of philosophy, a statement of
beliefs, and a statement of business principles

Differences between vision and mission

Vision Mission

Purpose Tells what an organization States what a company is currently

aims to achieve. doing.
Basic What do we want to become? What do we do?
Standard
Focal point Objectives Customers, Products/Services
Values Markets, Technology
Concern for survival, Philosophy
Self-Concept, Concern for public
image, Concern for employees
Time? Talks about the future Talks about the present
How often Rarely changes because it takes Product-oriented missions change
does it years to achieve most of the every time when a company decides
change? objectives to venture into a new product
market.

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Chapter#02 STRATEGIC MANAGEMENT
Prepared by Marruhk Qureshi
E.mail# marruhkqureshi@gmail.com

Characteristics of a Mission Statement:

1. A Declaration of Attitude

a. A mission statement is more than a statement of specific details; it is a declaration of

attitude and outlook.
b. A mission statement is broad in scope for two reasons:
c. A good mission statement allows for the generation and consideration of a range of
feasible alternative objectives and strategies without unduly stifling management
creativity.
d. A mission statement needs to be broad to effectively reconcile among and appeal to an
organization’s diverse stakeholders.

2. A Customer Orientation

• A good mission statement reflects the anticipation of customers. Rather than developing a
product and then trying to find a market, the operating philosophy of organizations should be to
identify customer’s needs and then provide a product or service to fulfill those needs.

A Mission Should be:

A Good mission statements should identify the utility of a firms product to its customers. For
instance:

i. Do not offer clothes. Offer attractive look.

ii. Do not offer shoes. Offer comfort for feet and pleasure of walking.

iii. Do not offer books. Offer hours of pleasure and benefit of knowledge.

Components of a Mission Statement:

Because a mission statement is the most visible and Public of strategic management process, it is
important that it includes all these essential components.

1. Customers: who are the firm’s customers?

2. Products and services: what are the firm’s major products and services?

3. Markets: geographically where does the firm compete.

4. Technology: is the firm technologically current?

5. Concerns for survival, growth, and profitability: is the firm committed to growth and financial
soundness?

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Chapter#02 STRATEGIC MANAGEMENT
Prepared by Marruhk Qureshi
E.mail# marruhkqureshi@gmail.com

6. Philosophy: what are the basic beliefs, values, aspirations and ethical priorities of the firm?

7. Self-concept: what is the firm’s distinctive competence or major competitive advantage?

8. Concern for public image: is the firm responsive to social, community and environmental
concerns?

9. Concerns for employees: are the employees the valuable assets of the firm?