1

Submitted by: Sharoz Ruben Roll no: 181230006

Strategic Management

Learning Diary 2
Submitted to: Prof. Suleman Anwar
 Learning Diary
Reporting
In today’s session we discuss the 2nd chapter of the strategic management named as The Business

Mission, Vision, and Values. This lecture is boosting our knowledge towards the Mission, Vision

and Values in the business. In this lecture we discussed on the following topics on which I have

given a detailed overview.

The vision, mission and values these are the three things that provide an organization the

direction to proceed in the future and it helps in establishing stakeholder relationship as well as it

sets the tone for organization culture, the commitment of employees and the customers.

Developing a strategic vision: It is the first task of the strategic management. It involves

the strategic thinking that we need to know our industry, product and services, stakeholders and

competitors. For Future we must be specific, that what you would like to become on in the

future. Creating a road map it is not just a direction but we should also know the benchmarks,

the conditions and constraints which would benefit in future. Future Business position is that

we need to know that how we would be positioned among all the stakeholders in the future.

Providing Long-term direction means that our vision statement must be futuristic. Giving firm a

strong identity that how we are going to be identified.

Questions to address in developing a strategic vision:

1. What changes are occurring in the market? (The changes might occur socio-culturally,

economically, technology, politically.)

2. What new or different customer needs should be satisfy? (That how we are going to

balance our product and services).

 Learning Diary
3. What new or different buyer segments should we be concentrating on? (The volume of

purchase and market situations).

4. What new geographic or product market should we be pursuing? (Means what markets to

be explored. What are the opportunities and threats for us in the market).

5. What should be company’s business look like in 5years? (Means Time horizon).

6. What kind of company we would like to become?

Vision Statement Examples: PepsiCo’s and Procter & Gamble vision statement.

Why is a Strategic Vision important? It says that manager should not just think about

today but about the future and particularly should keep his analysis in the things like

 New technologies

 How customers needs and expectations are changing

 How to compete competitor to keep our survival ensure.

 The external & internal factors should be known.

Three elements of Strategic Vision:

 Every person working in an organization should be clear about their thoughts and the

purpose of being.

 Develop a strategic vision that spells out a course of action.

 To vision should be communicated in a clear and exciting manner.

 Learning Diary
Strategic Intent: It is the expression used for the strategic vision means our intentions towards

the strategic vision. For example: how to tackle the internal resources, capabilities and core

competencies.

Strategic Mission: It is an application of strategic intent in terms of product to be offered and

markets to be served.

Vision VS Mission: Vision answers that what we want to become in a future? It concerns

with the firm’s future business path “that where we are going”? Mission answers that “what is

our business”? It focuses on the current situation, product and services and technological &

business activities etc.

Benefits of having a clear mission & vision: There are ten benefits to having a clear

mission and vision. Mission and vision both are not just the combination of the hi-fi words but

the clarity and the future planning is necessary. Mission and vision statement always

complement each other.

The process of developing mission and vision statements:

The managers should go through the background information. Ask managers to prepare the

mission and vision statements. Merge all these statements in a single document and distribute

this statement to all the managers.

We have also studied the Characteristics of Mission Statements. The Comparison (Gift Uni. ,

HBS , LUMS), Components, Characteristics, Broad or Narrow mission statement, Mission

statement for functional Department, Then moving towards the end of our lecture we further
 Learning Diary
discussed Values, what is value, Direction, Value take a variety of forms, Where we get them,

Core Values and the Component of value statement.

Relating

I am going to relate Mission and Vision statements with most of our Past courses like

Introduction to Business, In which we studied the documents required for the Business to set up

and what role it plays in determining the business. Furthermore I am going to relate it with a

course of the Business Law, In which we comprehensively Studied Memorandum and Article of

association containing business nature and its application. And for the Values which is the third

most important statement without which any kind of organization is incomplete, we can relate it

to most of our courses but some are HRM, Introduction to business, and Business Law.

Reasoning

After my learning’s from this chapter the main issue that comes in-front of me is that most of the

organizations, the firm’s or the industries especially in Pakistan actually don’t have not stated

their businesses mission & vision statements well. They don’t know what to do? Where to do?

And when to do? .They don’t have any kind of clear statements of their current and future

activities, so as a result they stuck in some of the situations. Because from the very start they

don’t have make such kind of the strategies that how they are going to progress in future. So in

that case they should adopt the learning’s that how to make the mission & vision statements.
 Learning Diary
Reconstructing

Mission v/s strategic: Vision Mission statement focus on current business activities in this

we discuss our current products, customer needs being served and what technological and

business capabilities we have. On the other hand in vision is concerned with firms future in this

we discuss markets to pursue, future technology-product-customer focus (by new technology we

make product that serve the need of the customer), kind of company management is trying to

create.

Further we discussed the ten Benefits of clear Mission and vision (clarity to manger and

employees, Provide: direction, focal point, worth & intent etc) and we have a discussion on

life vision and mission.

Process of developing mission and vision statement: First select article of the

statements and ask to read it to build up background knowledge for managers(theory building),

then ask them to prepare the vision and mission statement for the organization(keeping in point

of the previously build knowledge from articles), merge the statement in single document and

distribute the draft statement to all, then the Process create emotional bond and sense of mission

between organization and it employees. After this we discussed the Corporate example of the

process.

Characteristics of a Mission statement: In this we have to define our current business

activities and its boundaries, conveys 1) who we are 2) what we do 3) where are we now or

whom we serve, and should be company specific (should not be the same as other but should

define your business in your own context) not generic so as to give a company its own identity.
 Learning Diary
(Mission statement is not to make profit but is what we do to generate the profit as discussed

above that it should not be quantitative)

Examples of Mission and Vision: Then we discussed the Vision and mission statement

(Could be in paragraph or bullet points) of Gift university, LUMS and HBS (Harvard business

school). We compared them and we seen that time frame of institute can contribute to the precise

mission and vision statement (with the passage of time the development of mission and vision

statement changes and improve). Further Mission and Vision can also be the same as they tell us

the purpose of being of the company.

Why Mission statement is important: Unanimity of purpose(purpose of being), provide

basis for allocating resources(we should be clear the internal working and allotting human or

material resource to set SBU’s), to Serve as a focal point for individuals (centrality to some

extent for the individual),reconcile difference among stakeholders, resolve divergent views

among managers (to abolish different views and make a common one among all management),

arouse positive feeling about the firm, provide Basis for goals and strategies and provide the

direction.

Component of Mission statement for making a mission statement we have to

keep these component as the basis:

1. Customers (whom the firm will be serving)

2. Markets (where firm compete geographically)

3. Concern for survival, growth & profitability (commitment for growth and Financial

stability)
 Learning Diary
4. Philosophy (beliefs values and ethical priorities)

5. Concern for public image

6. Products and services (firm’s major products/services)

7. Technology

8. Self concept (competitive advantage and core competencies)

9. Concern for Employees (how firm values them)

Characteristics of mission statement Mission should be broad in scope:

It should be qualitative not quantitative no numbers, percentage or ratio used, less than 250

words, Inspiring, identify utility of firms products (need wants that are served),reveal firm is

socially and environmentally responsible, include components of mission statement (above

mentioned), Reconciliatory (unite the divergent views of the people) ,Enduring (can be used for

direction setting).

Then we discussed the examples of mission statements of PepsiCo’s and Dell. They were the

having few components missing from their mission statement. Further we came across Avon and

L’Oreal having all component used in mission statement. The thing here is that it is not

necessary to add all the components. We also saw Intel and Microsoft mission and vision

statement.

Broad or Narrow mission statement: A mission statements should be narrow enough to

specify the real arena of interest and should serve as boundary (what to do and not to) and

beacon (where management want to take the firm).Diversified companies have broader business
 Learning Diary
definition than single businesses. Then we compared the broad and narrow aspect for business.

The thing here is that we should carefully select the words we use/select for the statement.

Mission statement for Functional department: In this we discussed that the mission

and vision statement of corporate level is made then it is given to the SBU’s and each one then

further make their own mission and vision and then they post it to the departments(Functional

area: Marketing, sales etc) and then everyone of them make their own statements. And in their

statement they should mention their Role and scope of activities, their direction and their

contribution. Then we discussed the Examples of GBS (Gift business school) and (LUMS)

Mission and Vision statements.

Values: It is the third most important statement for the firm. STP (Segmentation, Targeting,

Positioning) in this we first segment our market and then we target that market and then we

position our product or services and with positioning we elaborate all the 7P’s of marketing.

Values statement comes from Culture and core beliefs .We further discussed 4 sources through

which we get values.

1. Environment (our surrounding)

2. Religion (Our Core Belief)

3. Doctrine (Capitalism, communism and all the ism’s)

4. Genetic Code

These all will result in our thought process through which we make values for our business.

Further we discussed CSR (corporate social responsibilities) the responsibilities a company deem

valuable for them by their own will or by law.

 Learning Diary
What is a Value?: Values are qualities, characteristic or ideas about which strongly feel about

it also affect the decisions, goals and behavior. They define what is of worth, beneficial, and

harmful. It also gives direction to your action, judgments, and attitudes.

Direction Values: Define our direction tells us what the preferences are and what is of worth.

Value-Goals- behavior- self value. They give consistency in our behavior and tell on whom or

things we shall be spending the time on. It creates a relationship between you and the world and

tells the direction/path for life.

Forms of Values: In this we discussed the five forms in which we establish values Principles

or standards, Personal qualities, Character traits, Code of ethics and Goals

Where do we get values: We get values from homes, school, society, media. Music, books,

families we belong to, culture we are from, religion, employers, TV, friends and time period we

belong to(different era’s and generation have certain characteristics and values e.g. 70’s was of

peace and 20’s was of information technology etc. then for generation we have generation x, y

,baby boomers etc )

Core values: In this we compared the core values of business with what are not.

Components of Value statement: In this we learned the main components of value

statement without we cannot create/establish corporate values:

1. Quality (maintain high standards an continually improve outcome)

2. Innovation (open to change, innovate, seek better)

3. Teamwork (Collaboration and knowledge sharing)

 Learning Diary
4. Service (fulfill customer expectation)

5. Integrity (high moral principles: trust, respect, honesty, transparency)

6. Compassion (organizational commitment toward supportive environment for stakeholders.)

So when make the value statement the above components should be included or used.

Conclusion:

The lecture was interesting and informative as we discussed the basic statements of the business

that define the business. Vision statement tell about future direction for business while Mission

statement tell about the present business and Value Statement complement the both as it tell by

what standards or values we are going to reach the present or future goals or objectives.