Group 2 - Narrative Report

Don Honorio Ventura State University Villa de
Bacolor, Pampanga, Philippines, 2001
GRADUATE SCHOOL
“Opening Minds, Progressing Technologies, Creating Brighter Future.”
A NARRATIVE REPORT
Chapter II: The Business Vision and Mission
Strategic Management
Submitted to:
DR. MA. ANTONETTE MORALES GUINTU

Strategic Management Professor
Submitted by:
DE LEON, CES AINA S.

REYES, INA KRISTINE JOURLEAN C.
SANCHEZ, MIKEE S.
MBA-1A
July 16, 2021
Chapter II: The Business Vision and Missiony 1

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Chapter II
The Business Vision and Mission
INTENDED LEARNING OUTCOMES:

Understand the nature and role of vision statements in strategic
management; Describe the nature and role of mission statement in
strategic management; Apply the process of developing a vision and
mission statement;
Explain how clear vision and mission statements can benefit other strategic
management activities;
Integrate the characteristics of a good mission statement; and
Analyze the components of a mission statement.
The vision and mission statements are often displayed throughout a firm’s premises and
are distributed with company information sent to constituencies. The statements are
part of numerous internal reports, such as loan requests, supplier agreements, labor
relations contracts, business plans, and customer service agreements.
For us to better understand the concept and tools needed to evaluate and write business
vision and mission statements, let us first look at a new business. In the beginning, a
new business is simply a collection of ideas, which rests on a set of beliefs that the new
organization can offer some products or services to some customers in a geographic
area using some type of technology at a profitable price. When the set of beliefs about a
business at its inception is put into writing, the resulting document mirrors the same
basic ideas that underlie vision and mission statements.
VISION STATEMENTS: WHAT DO WE WANT TO BECOME?


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The vision statement answers the basic question, “What do we want to

become?” It outlines what an organization would like to ultimately achieve or where the
organization is heading over the next five to ten years. Prior to the founding of an
organization’s mission statement, the vision statement should be the first to be
established.
The vision statement should:

answer the basic question, “What do we want to become?”;
be short, preferably one sentence, and as many managers as possible should
have input into developing the statement;
do more than identify the product/service a firm offers;
be written from a customer’s perspective; and
reveal the type of business the firm engages.
Examples of Good Vision Statements:

1. e-Bay – “To provide a global trading platform where practically anyone can
trade practically anything.”
2. Ford Motor Company – “To provide personal mobility for people around the
world.” 3. General Motors – “To be the world leader in transportation products
and related services.”
Examples of Vision Statements for Improvement:

1. PepsiCo – “To continually improve all aspects of the world in which we operate –
environmental, social, economic–creating a better tomorrow than today.”
o Comment: Statement is too vague; it should reveal how the firm’s food and
beverage business benefits the people
2. Royal Caribbean – “To empower and enable our employees to deliver the best
vacation experience for our guests, thereby generating superior returns for our
shareholders and enhancing the well-being of our communities.”

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o Comment: Statement is good but could end after the word “guests”
Vision Statement Analysis
Starbucks Vision Statement

Starbucks strives to be the premier roaster and retailer of specialty coffee globally.
Starbucks “Improved” Vision Statement

Starbucks’ vision is to be the most well-known, specialty coffee, tea, and pastry
restaurant in the world, offering sincere customer service, a welcoming
atmosphere, and unequaled quality.
Comments:
The first vision statement does not state what the company wants to
become. Nor does it acknowledge the firm’s movement into specialty tea
offerings. It is not as customer- oriented as needed.
The improved vision statement reveals the company’s aspirations for the
future and acknowledges that upscale tea and pastries complement their
premium coffee offerings.
MISSION STATEMENTS: WHAT IS OUR BUSINESS?
Peter Drucker, who is often called “the father of modern management” for his pioneering
studies at General Motors and for his 22 books and hundreds of articles, believes that
asking the question “What is our business?” is synonymous with asking “What is our
mission?”

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All organizations must have a reason for being. The mission statement
shows the company’s purpose or serves as a declaration of an organization’s “reason
for being.” It allows the easy spotting of the business the company is presently in and
the customer needs it is undertaking to serve.
The mission statement is sometimes called a creed statement, a statement of purpose,

a statement of philosophy, a statement of beliefs, a statement of business principles, or
a statement “defining our business.”
A Comprehensive Strategic-Management Model
As illustrated above, the vision and mission statements are widely recognized by both
practitioners and academicians as the first step in strategic management.

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Mission Statement
- It answers the pivotal question, “What is our business?”
- It is the foundation for priorities, strategies, plans, and work
assignments. - It is the starting point for the design of jobs and
organizational structure.
Application of the Vision and Mission Statements following the above-mentioned

discussion:
Division Call Center for Tutors and Guidance Counselors
The Division Call Center for Tutors and Guidance Counselors, which was
simultaneously launched with the opening of classes on October 5, 2020, is a
project initiated in the Department of Education - Division of City of San
Fernando, Pampanga. The program aims to provide voice and non-voice
educational and psychological assistance to the parents and learners of the
division in order to fill the gaps brought by the new normal situation in the
educational system.
Parents and learners are provided with assistance through two different
channels: a) Division Call Center for Tutors and Guidance Counselors
Facebook Page, and b) Cell Phone Line.
As of this writing, the Division Call Center for Tutors and Guidance
Counselors of the Department of Education - Division of City of San
Fernando (P), is the sole online educational and psychological assistance
provider among other divisions in Region 3.
VISION
We envision becoming a premier provider of quality online educational assistance
and guidance counseling services in the region augmenting the development of
productive, resilient and well-rounded learners through quality, relevant and
liberating education.
MISSION

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To continuously provide quality education amidst uncertainties, we hereby commit

ourselves to:
Provide inclusive and accessible educational assistance, which supplements the
Modular Learning System;
Deliver autonomous, confidential and fair guidance and counseling services
tailored to the needs of the parents and learners of the division; and
Support learners in developing 21st Century Skills.
As discussed earlier, mission and vision plays an important role in an organization. The
mission statement provides the organization with a clear and effective guide for making
decisions, while the vision statement ensures that all the decision made are properly
aligned with what the organization hopes to achieve. So at this point we will discuss the
process on how the mission and vision statements should be develop.
THE PROCESS OF DEVELOPING VISION AND MISSION STATEMENTS
Step 1: Have managers read related articles.

A facilitator or top manager should select several articles about how to develop
vision and mission statements. Vision and mission of other company within the
same industry where the company operates may also be selected. These articles
should be then read by the managers to serve as background information for
them to have a reference or guide in developing vision and mission statements.
Step 2: Have managers prepare a vision and mission statement for the
organization. The question here is why the managers are involved in preparation
of vision and mission statements. It is because they are responsible in planning
which involves mapping out exactly how to achieve a particular goal. They are
also responsible in organizing of their team and organizational resources
according to plan. Assigning and granting authority are two important elements of
organizing. A manager also discerns his/her area's needs, he /she may decide to
beef up his staffing by recruiting, selecting, training, and developing

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employees. A manager needs to do more than just plan, organize, and staff
his/her team to achieve a goal. He/She must also lead. Leading involves
motivating, communicating, guiding, and encouraging. It requires the manager to
coach, assist, and problem solve with employees. After the other elements are in
place, a manager's job is not finished. He/She needs to continuously check
results against goals and take any corrective actions necessary to make sure
that his area's plans remain on track. Thus, it is important that managers are
involved in developing the company’s vision and mission statement for the
organization to obtain their support for other strategy formulation, evaluation and
implementation of activities .
Step 3: Merge the documents into one and distribute
A facilitator or top manager should merge these statements into a single

document and distribute the draft statement to all managers. An organization with
a strong leadership may facilitated by someone at the board level. Whether the
facilitator is a member of the staff or is contracted through a third party, the
facilitators’ role is to help drive the process without influencing the content.
Step 4: Gather feedback from managers
Feedback is about listening actively, taking the time to analyze, and then thinking
of the best possible solution to perform better. It provides positive criticism and
allows to see what everyone can change to improve their focus and results. It
brings people together and it creates a healthy communication flow. In this step,
it is more on criticizing the merged vision and mission statements wherein
modifications, additions and deletions from managers is needed.

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Step 5: Meet to revise the final document
Hold a meeting to revise the merged vision and mission statements. Revising the
merged vision and mission statements gives an opportunity to step back and re-
envision it. We think about the goals when developing mission and vision
statements and whether these goals are accomplished. We ensure that our ideas
are clearly expressed and well
supported.
THE BENEFITS OF MISSION AND VISION STATEMENTS
1. To ensure unanimity of purpose within the organization.
Unanimity refers to the agreement of all people involved. When there is

unanimity, everyone agrees/support the organizations vision and mission.
Everyone is working hard toward a single purpose. This will help to increase
efficiency and productivity in the organization. As well as, help the organization to
achieve its goals.
For example, at RDF we work with synergy & teamwork. Each of us brings unique
contributions and important expertise to the team. I remember that every time
there is a meeting specially if it’s about planning we always end up by saying “
One Team , One RDF “ that signifies we are united as one to achieve our goals.
2. To provide a basis, or standard, for allocating organizational resources.
Vision and mission statements help to align the resources of organization toward
achieving a successful future. Organizational resources are not only cash but
include all assets that are available to a firm for use during the production
process. The major resources used are often described as follows: (1) human
resources, (2)

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financial resources, (3) physical resources, and (4) information resources.

Managers are responsible for acquiring and managing the resources to
accomplish goals.
For example, RDF goal is to grow sales revenue of at least 15% per annum, with
additional sales revenue growth from Traditional Distributorship and Modern
Trade. Also, net profit growth of 20% on 2021, 13.5% on 2022, and 14% on
2023. The first thing that managers need to decide are strategies in order to
accomplish goals. Let’s say the strategies of the company are market expansion
focusing on econoprem segments in Luzon, dramatically bring down cost-to-
produce for a highly efficient production and develop a highly competent
organization. In line with the strategies, the company needs to allocate resources
which includes financial resources that will be used to carryout main operations
of the company; human resources which can contribute effectively towards the
successful function; physical resources which includes machineries and
equipment, buildings, and even delivery vehicles; and information resources
which are the POS and websites in order for us to sell our products online which
will help us to achieve our goals.
3. To establish a general tone or organizational climate.

The general tone of company describes how brand communicates with the
audience and thus influences how people perceive message. In other words, it
describes how we want to communicate to our audience. Company tone of voice
represents brand personality and values. It means to develop a set of values or
norms for a business to run by.
For example, RDF core values define who we are as an organization. They serve
as our foundation on how we perform our work and how we work together as a
team to accomplish our goals. There is no other fitting acronym to describe our
set of core values - T.R.I. U. M.P. H, which stands for:

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Total Quality and Excellence

We create value-adding solutions and continuously upgrade our business
standards. We are driven to transform RDF into a top-of-the-line business
organization.
Responsibility w/ Accountability
We deliver our commitments and accept responsibility for our
actions! Integrity of Character
We conduct ourselves with honesty and fairness even when no one is
watching, Unity in Diversity
We work with synergy & teamwork. Each of us brings unique contributions and
important expertise to the team.
Mind-set of an Entrepreneur
We love our company! We take responsibility for its success
Pioneering and Innovative
We seize the opportunity to be the prime mover and set new standards of
excellence in our industry.
We are committed to redefine infinite possibilities for RDF’s future business
growth! Heart of True Service
We are committed to go the extra mile to serve and delight our customers AT ALL
TIMES!
Another example is our practice in RDF, to greet each other “Fresh Morning!” at
any time of the day instead of “Good Morning”/ “Good Afternoon”. This is to
promote one of our business unit which is the Fresh Options Meatshop. We also
believe that morning people are usually more successful than evening people
because as a group, they develop tendency to strictly follow plans and getting
things done on time.

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4. To serve as a focal point for individuals to identify with the organization’s purpose
and direction, and to deter those who cannot from participating further in the
organization’s activities.
The mission statement acts as “North Star” where it provides the direction that is
to be followed by the organization while the vision statement provides the goal
(destination) to be reached by following the direction.
5. To facilitate the translation of objectives into a work structure involving the

assignment of tasks to responsible elements within the organization
The objective is easier to achieve by delegating tasks and responsibilities within

the organization.
In RDF, our CEO sets OGSM (Objectives. Goals. Strategies. Measures) every
two years. It is a framework to specify and clarify plans. It also serves as a
mother OGSM. Then, every department will prepare a departmental OGSM
which is aligned on the mother OGSM. In that way assignment of task to
responsible departments/employees within the organization is easier.
6. To specify organizational purposes and then to translate these purposes into

objectives such a way that cost, time and performance parameters can be assessed
and controlled.
Organization purpose must be clear and specific so that objectives will be easy to
manage and to understand in such a way that cost, time and performance
parameters can be evaluated. Also, objectives should be specific, measurable,
attainable, relevant and time bound (SMART).

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The vision & mission statement are important tools of strategic planning and thus,
they help to shape the strategy that will be used by an organization to achieve
the desired future.
Conclusion
The mission and vision statements are very important and they can be best
described as a compass and destination of the organization respectively.
Therefore, every organization should develop clear vision and mission
statements, as not doing so would be like going on a journey without knowing the
direction you are to follow or the destination.
Most people know that a vision statement is a sentence that explains and shows a
company’s or organization’s future outlook. It answers the question, “What do we want
to become?” or “What does a company want to be in the future?”
On the other hand, a mission statement provides a clear explanation/description of a

company or an organization’s reason for existence.
CHARACTERISTICS OF A MISSION STATEMENT
Mission statements provides motivation and general direction that guide an organization.
Good mission statements identify the utility of a firm’s products to its customers. It is the
customer who determines what a business is. The following are the characteristics of a
mission statement:
Broad in scope; do not include monetary amounts, numbers, percentages,

ratios, or objectives
Less than 250 words in length
Inspiring

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Identify the utility of a firm’s products

Reveal that the firm is socially responsible
Reveal that the firm is environmentally responsible
Include nine components customers, products or services, markets, technology,
concern for survival/growth/ profits, philosophy, self-concept, concern for public
image, concern for employees
Reconciliatory
Enduring
With this, mission statements reflect judgments about future growth and strategies that
are based on forward-looking external and internal analyses. A business mission should
provide useful criteria for selecting among alternative strategies. A clear mission
statement provides a basis for generating and screening strategic options
CUSTOMER ORIENTATION
A good mission statement describes an organization’s purpose, customers, products or

services, markets, philosophy, and basic technology. According to Vern McGinnis, a
mission statement should –
1. define what the organization is and what the organization aspires to be, 2.
be limited enough to exclude some ventures and broad enough to allow for
creative growth,
3. distinguish a given organization from all others,
4. serve as a framework for evaluating both current and prospective activities, and
5. be stated in terms sufficiently clear to be widely understood throughout the
organization.
A good mission statement identifies customers’ needs and provide the utility to
fulfill those needs.

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COMPONENTS OF A MISSION STATEMENT

*using Bank of the Philippine Islands as an example
Our Vision
We aim to build a better Philippines.
Our Mission
We nurture every Filipino’s future with a trusted approach to managing money and
innovation that makes life easier every day.
1. Customers—Who are the firm’s customers?

Filipinos: The customers are the depositors and investors.
2. Products or services—What are the firm’s major products or services?

Managing Money: Financial services such as cash and check deposits, cash
withdrawal, check encashment and bills payment
Money: Financial products such as car loans, housing loans, treasury bills
and insurance
3. Markets—Geographically, where does the firm compete?

There is no direct statement that provides geographical market. Indirectly, if
used the word “Filipino”, it conveys national market. But as of now, BPI
has expanded

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its geographic market to other international countries. The bank has a

network of over 800 branches in the Philippines, Hong Kong, and Europe.
4. Technology—Is the firm technologically current?

Innovation: BPI is technologically advanced with its systems and machines
such as BPI Express Assist, or BEA, the newest innovation being rolled
out by the Bank of the Philippine Islands. The service allows bank
customers to enter transaction data and needed service on touch-screen
machines for ease to its customers and employees. Also, the bank has
3,000 ATMs and CAMs (cash accept machines).
5. Concern for survival, growth, and profitability—Is the firm committed to growth and
financial soundness?
Trusted Approach: Yes, since BPI is an established financial institution it

can definitely support itself. The establishment of BPI, originally known as
El Banco Español Filipino de Isabel II, helped in the start of the Philippine
banking and finance industry. The bank back then performed many
functions—from providing credit to the National Treasury to printing and
issuing currency—making it in effect, the country's first Central Bank.
Today, BPI carries on this tradition, financing many private and public
sector initiatives and enterprises in support of economic growth and nation
building.
6. Philosophy—What are the basic beliefs, values, aspirations, and ethical priorities
of the firm?
We nurture every Filipino’s future: BPI believes that its services will make its
customers financial standing better. For example, customers can learn
how to save money and earn money.

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7. Self-concept—What is the firm’s distinctive competence or major competitive

advantage?
To managing money and innovation: BPI wants itself to be seen by its

customers as an up-to-date financial institution since the company invests
in technology such as BEA, which is their queuing machine, and up to
date system.
We nurture every Filipino’s future: BPI wants to be viewed as a financial
institution that offers extra financial service by providing them ideas on
financial planning.
8. Concern for public image—Is the firm responsive to social, community, and
environmental concerns?
We nurture every Filipino’s future with a trusted approach to managing

money and innovation that makes life easier every day: BPI strives to achieve
sustainability by creating shared value for its clients, shareholders, and society
as a whole. For BPI, sustainability means providing opportunities for financial
wellness for individuals, communities, and businesses from different economic
backgrounds, as well as financing geared towards a greener economy and
society.

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9. Concern for employees—Are employees a valuable asset of the firm?

We nurture every Filipino’s future: BPI opens more branches not only to
cater customer’s needs but also create job opportunities to individuals.
Also, it has a competitive salary and focuses on manpower development
thru continuous seminars and trainings. With this, Unibankers meet each
challenge with
determination and drive, opening themselves to unlimited possibilities.
In conclusion, mission statements are unique in nature since it describes a company.

The presence of 9 components tells that a mission statement is well-thought of. A good
mission statement provides clarity and aids in the formulation of strategies to reach their
goals. It also helps employees to see the meaning of their work that helps them to see
the positive aspects of their daily activities, boosting morale and creating long-term
employee investment in the workplace culture.

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Don Honorio Ventura State University Villa de

Bacolor, Pampanga, Philippines, 2001

DR. MA. ANTONETTE MORALES GUINTU

DE LEON, CES AINA S.

July 16, 2021

Chapter II: The Business Vision and Missiony 1

INTENDED LEARNING OUTCOMES:

VISION STATEMENTS: WHAT DO WE WANT TO BECOME?

Don Honorio Ventura State University Villa de

The vision statement answers the basic question, “What do we want to

The vision statement should:

Examples of Good Vision Statements:

Examples of Vision Statements for Improvement:

Don Honorio Ventura State University Villa de

Vision Statement Analysis

Starbucks Vision Statement

Starbucks “Improved” Vision Statement

MISSION STATEMENTS: WHAT IS OUR BUSINESS?

Don Honorio Ventura State University Villa de

The mission statement is sometimes called a creed statement, a statement of purpose,

A Comprehensive Strategic-Management Model

Chapter II: The Business Vision and Missiony 5

Application of the Vision and Mission Statements following the above-mentioned

Division Call Center for Tutors and Guidance Counselors

Don Honorio Ventura State University Villa de

To continuously provide quality education amidst uncertainties, we hereby commit

THE PROCESS OF DEVELOPING VISION AND MISSION STATEMENTS

Step 1: Have managers read related articles.

Don Honorio Ventura State University Villa de

Step 3: Merge the documents into one and distribute

A facilitator or top manager should merge these statements into a single

Step 4: Gather feedback from managers

Don Honorio Ventura State University Villa de

Step 5: Meet to revise the final document

THE BENEFITS OF MISSION AND VISION STATEMENTS

1. To ensure unanimity of purpose within the organization.

Unanimity refers to the agreement of all people involved. When there is

2. To provide a basis, or standard, for allocating organizational resources.

Don Honorio Ventura State University Villa de

financial resources, (3) physical resources, and (4) information resources.

3. To establish a general tone or organizational climate.

Don Honorio Ventura State University Villa de

Total Quality and Excellence

Don Honorio Ventura State University Villa de

5. To facilitate the translation of objectives into a work structure involving the

The objective is easier to achieve by delegating tasks and responsibilities within

6. To specify organizational purposes and then to translate these purposes into

Don Honorio Ventura State University Villa de

On the other hand, a mission statement provides a clear explanation/description of a

CHARACTERISTICS OF A MISSION STATEMENT

Broad in scope; do not include monetary amounts, numbers, percentages,

Don Honorio Ventura State University Villa de

Identify the utility of a firm’s products

A good mission statement describes an organization’s purpose, customers, products or

Don Honorio Ventura State University Villa de

COMPONENTS OF A MISSION STATEMENT

We aim to build a better Philippines.

1. Customers—Who are the firm’s customers?

2. Products or services—What are the firm’s major products or services?

3. Markets—Geographically, where does the firm compete?

Don Honorio Ventura State University Villa de

its geographic market to other international countries. The bank has a

4. Technology—Is the firm technologically current?

Trusted Approach: Yes, since BPI is an established financial institution it