Chapter 2

College for Research & Technology of Cabanatuan
Burgos Ave., Cabanatuan City 3100

Tel. No (044) 463 2735 email: crt.cabanatuan@gmail.com
Website: CRT.edu.ph Facebook: https://www.facebook.com/crtcab1988
Chapter 2
Strategy Formulation – Vision and Mission
This chapter focuses on the concepts and tools needed to evaluate, write and learn
the importance of business vision and mission. The global economic recession has
resulted in many firms changing directions and thereby altering their entire vision and
mission in order to survive.
Starting a new business rests on a set of beliefs that the new organization can
offer some product or service to some customers. A new business owner typically
believes that the management philosophy of the new enterprise will result in favorable
public image and that this concept of the business can communicated to, and will
adopted by important constituencies.
Vision and Mission statements often found in the front of annual reports. They
often displayed throughout a firm’s premises.
What is Business Vision Statement?
We define Strategic Vision as “What the organization hopes to become…the

business you will be in tomorrow.” There are a few common paths to creating a strategic
vision. Some executive teams like to start with a clear and compelling Strategic Vision
Statement to inspire and align the troops to a bigger and better future.
Other leaders prefer to start with the company’s Mission Statement to ground the
company with their “organization’s business and fundamental purpose.” Starting with a
Strategic Mission Statement allows the team to create a Strategic Vision Statement that
clearly articulates the organization’s future state if the Mission were fully accomplished.
Regardless of where you start, a clear vision and mission combined with your
corporate values provide the very foundation for strategic success. Without those three
strategic drivers, it is difficult to develop annual strategic goals and actions that propel
the enterprise forward in an aligned and differentiated manner.
Five Attributes of an Effective Strategic Vision Statement

While there is no perfect formula, based upon over 25 years of strategic clarity
facilitation with high growth companies, here are five key components of an effective
Strategic Vision statement to consider.
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 Future Oriented
What will the organization look like, feel like, think and say in the future?
Where is the organization headed? What does your full potential look like?
 Inspiring and Challenging
What vivid and energizing image do you want to create for people about
your desired outcomes and goals? What is your dream? What mountaintop are
you striving to reach? What catalyst will impel the organization to move toward
that dream?
 Motivating and Memorable
What notable and emotionally connecting future direction do you want to
keep reaching and pushing toward?
 Purpose-driven
What is the larger sense of purpose you are striving to obtain? Are you
building a cathedral or are you laying stones?
 Unique
Can you substitute your strategic vision statement for others inside or
outside your industry? If you can, your unique value proposition needs some more
work.
Importance (Benefits) of Vision Statements

Vision is a vivid mental image of what you want to your business at some point in
the future. Having a vision will give your business a clear focus and can stop you heading
in the wrong direction.
Vision is important to any business or organization it serves as a strategic plan for
success it can act as a guide when employee encounter challenge. Having a clear vision,
it will avoid wasting resources, gives you direction and help to prevent mistakes.
Importance of vision is always bring you back and keep motivated. You cannot lead if
you do not have a vision. Vision statement will answer the question "what do we want to
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become”? A vision statement describes; the company's purpose, what the company is
striving for and what it wants to achieve.
 Vision statement might be inspired by certain aspects of your business such as:
 Reputation - among customers, staff and competitors
 Service quality standards - to make customers priority
 Growth - you offer new products, innovate, get more customers and increase
locations
 Passion - which you and your staff enjoy what to do
 Sustainability - that you are financially and environmentally sustainable.
 Here some essential tips that will have to remember in creating vision statement
 Managers and executive agree to basic vision that the company strives to
achieve in the long term
 should be short
 should reveal the types of business
 be clear and inspiring
3 Key Reason Why Having A Business Vision is Crucial
 It is Unifying
When a clear vision is defined within a company, it provides a gathering
point or common interest that making everyone feel as though they are part of
a greater whole.
 It is Inspiring
Defining a powerful vision is inspiring. It has a clear motivational effect
on everyone within the organization.
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 It provides a focal point for goal setting and business planning

Having a vision provides a sense of purpose direction for the business.
Your vision will help you define your short term and long term goals , and
guide the decisions you make along the way. The best way to formalize and
communicate the vision you have for your business is to write a vision
statement.
Characteristics of Business Vision

A vision statement is an inspirational statement of an idealistic emotional future
of a company or group. Vision describes the basic human emotion that a founder intends
to be experienced by the people the organization interacts with, it grounds the group so it
can actualize some existential impact on the world.
 Brevity
A good vision statement is succinct, which makes it easy for managers and
leaders to communicate and employees to remember. Vision statements are
less effective when they are too short (such as a one-sentence vision
statement) or too long (such as a two or three page vision statement). But
exactly how long should it be? The average vision statement is about 35
words, or two to three sentences. This length seems to be about right for
effectively communicating the vision statement to employees. It is long
enough to clearly describe the vision but not so long as to be difficult to
remember.
(An example of a vision statement of typical length is the following: We strive

to bring pleasure to our customers by providing superior architectural
woodwork at affordable prices. We want to make it possible for others to
enjoy the beauty of high quality wood products. Toward that end, we build
long-term relationships with suppliers, employ and reward skilled employees,
maintain modern machinery and production methods, and minimize waste. )
 Clarity - A vision should unite the organization and provide a stable,

transcendent goal. The vision should avoid using jargon and buzz words and
should use understandable terminology. Writing concise sentences is another
way of clarifying a vision statement.
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 Abstract and Challenging - An effective vision statement sets an abstract

yet challenging goal. The goal should not be stated too concretely (e.g., “to
build a new building”) but rather at a higher level of abstraction (e.g., “to
create beautiful living spaces”). This allows it to be relevant to all employees,
thus permitting it to guide their daily actions and decisions. Abstractness also
provides for flexibility.
(The following vision statement does a good job at communicating an

abstract, challenging goal in a manner that is both clear and succinct: Our
business vision is to make interior environments more beautiful through the
valuable, careful, and efficient production of architectural millwork, thereby
providing an enriched quality of life to all who view and use our work.)
 States the Organization’s Purpose - A vision should state a general idea of

why the organization exists but should avoid including overly general
statements such as to “develop new markets” or “to be the best”. These types
of vision statements will not provide effective guidance to employees who are
responsible for developing ideas for new products/services or addressing new
competitors.
(An effective vision statement should describe what the organization intends
to achieve. The statement of purpose can include the organization’s current
or desired products or services, its markets (industry, sub-industries,
geographic locations, or customers) in which it intends to offer those products
and services, and the impact that its products and services are intended to
have.)
 Future Focused Good vision statements are long-term, describing the

organization’s desired end-state well into the future. Effective vision
statements often describe on-going actions in which the organization will
engage.
(The following is an example of a future-oriented vision statement: Our goal

is to achieve 100% customer satisfaction for every product that we sell. We
will be relentless in the pursuit of that goal and will never vary from the
principles of customer satisfaction: Quality, Value, and Company Image.)
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 Sets a Desirable Goal A good vision statement inspires followers by setting a

desirable goal. It may emphasize:
 Fundamental values
(We will nurture long-term partnerships with employees,
customers, and suppliers built on consideration, trust, open
communications, integrity, and professionalism. )
 A collective identity
( We will strive to be the professional team of choice, offering
quality engineering and technical services focused on customer
satisfaction. We will provide a quality product, on time and within
budget, which will exceed our customers’ expectations. )
 The organization’s uniqueness

(its employees, customers, resources, etc.) We will be known for
the striking beauty of veneer cabinets that we will sell to the
nation’s most famous hotels.)
 Employees’ worth and efficacy

(We are determined to become a university whose people take
pride in their accomplishments and their future potential. )
What is Business Mission Statement?

Your mission statement answers the question, “Why do we exist?” It gives the
organization purpose and meaning. It speaks to why employees want to work for your
company. It begins to answer the question, “what is strategic management and
planning?”. If you’re a for-profit organization, the fundamental mission of the business is
to create shareholder value. But that won’t attract anyone to come work for you, and it
does not give rise to a bigger corporate purpose. It doesn’t inspire any employees nor
align with their individual values.
Every organization needs to define its fundamental purpose, philosophy, and
values as part of the corporate strategy process. The mission statement answers the basic
questions of why your company exists and describes the needs your company was created
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to fulfill. It is NOT about your products and services or customers. It is about why you
provide them.
For instance, the mission of Achieve It is “equipping business leaders to achieve
their most important initiatives.” It is about accelerating the results curve. We come to
work every day driven by the idea of transforming businesses. We strive for more results
and better results faster, whether for our own company or for the customers we serve.
The mission statement points us in the right direction. Our strategic and operational plans
become the road map. Our goals and objectives help us measure success along the way.
Without the guidance of our mission statement, programmatic priorities would be
difficult to establish and the corporate strategy process would become muddled
A mission statement, therefore, provides the basis for judging the success of an
organization and its goals. It helps the organization verify if it is on the right track and
making the right decisions. It provides direction when the organization is tempted by
distractions and forced to adapt to new demands. Attention to company mission helps the
organization adhere to its primary purpose and serves as a touchstone for decision-
making during times of conflict. With a strong mission statement in place, it is very easy
to identify your goals, objectives, strategies, and tactics.
A mission statement can also be used as a tool for resource allocation for staff,
donors, volunteers, and community involvement.
Mission statements provide a clear goal for employees and can improve their job
performance. They are a great way to motivate employees to work towards a company's
long-term plans for growth. . Employees can engage with a company's core values by
reading its mission statement and applying those ideas to their work.
A mission statement is a summary of an organization's goals and values. The
quality and content of a company's mission statement can affect every part of a business,
including its customers and employees. Employees can benefit from understanding why a
mission statement is important in their work and the overall success of the company they
work for.
Importance (Benefits) of Mission Statements

A mission statement encompasses an entire company or project, so there are
several reasons why a mission statement is important. A mission statement is essential
throughout all aspects of a company, influencing it in these key ways:
 Creating identity
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Mission statements create the core identity of a company and establish a

basis for everyone in the company to make decisions. Mission statements
contribute to a company's brand and encourage unity among everyone who
supports or works with the company. A company's identity differentiates it from
competing organizations, and the mission statement is one of the most defined
ways to express that identity to others.
 Attracting talent
When looking for a job, many people use a company's mission statement
to decide if they want to apply. A strong mission statement that people can relate
to encourages talented people to get involved with the company. Mission
statements allow like-minded people with similar goals to naturally work together
on projects that are most important to them.
 Guiding culture
A company's mission statement provides a guide for the company culture
and workplace environment to develop positively. The values, norms and beliefs
of a company create a unique cultural environment, and mission statements
provide an official method for expressing that culture. A mission statement should
clearly reflect these values to guide employee actions and organizational
initiatives.
 Developing purpose
A strong mission statement gives employees purpose and improves
engagement in their work. Mission statements help employees see the meaning
and purpose of their work by giving them clear reasons their job benefits a larger
goal. Mission statements help employees see the positive aspects of their daily
activities, boosting morale and creating long-term employee investment in the
workplace culture.
 Improving performance
Mission statements provide a clear goal for employees and can improve
their job performance. They are a great way to motivate employees to work
towards a company's long-term plans for growth. A good mission statement
creates an environment that encourages everyone to produce high-quality work
and hold high standards for themselves. Employees can engage with a company's
core values by reading its mission statement and applying those ideas to their
work.
 Building community
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Mission statements help companies and employees connect with members

of their community and establish a good reputation among customers, clients and
business partners. Working for a company that has a great mission statement can
help you network with like-minded people who share a similar mission. A
mission statement should be appealing to potential customers and community
members to build positive associations with their brand.
 Envisioning the future
A mission statement provides an ideal vision for the company's future and
directs its growth. Mission statements encourage employees to think about how
their actions will impact future business success and positive company culture.
Because mission statements direct employee actions, they can have a significant
impact on people's futures within the company and how the organization itself
will grow over time.
 Aligning behaviors
Mission statements help everyone on a team align their behaviors toward
the same goals. They can use mission statements to evaluate a business structure
or make decisions about policies and procedures. Following a mission statement
makes sure different departments work together and that every aspect of the
workplace contributes to progress. Mission statements keep behaviors consistent
with ideal outcomes, regardless of the situation.
 Encouraging critical thinking
Mission statements encourage people to think critically about the
influence their actions will have on company goals in both the long and short
term. Having a clear mission statement helps people consider how the company
could grow in different contexts while still upholding their values. A mission
statement is important because it provides a concise strategy and philosophy that
applies to any situation within a company.
Characteristics of Business Mission

A mission statement defines the basic reason for the existence of that
organization. Such a statement reflects the corporate philosophy, identity, character, and
image of an organization. It may be defined explicitly or could be deduced from the
management’s actions, decisions, or the chief executive’s press statements. When
explicitly defined it provides enlightenment to the insiders and outsiders on what the
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organization stand for. In order to be effective, the following characteristics of mission

statement need to be present in an organization.
 It should be feasible.
A mission should always aim high but it should not be an impossible
statement. It should be realistic and achievable its followers must find it to be
credible.
 It should be precise.
A mission statement should not be so narrow as to restrict the
organization’s activities nor should it be too broad to make itself meaningless.
 It should be clear.
A mission should be clear enough to lead to action. It should not be a high
sounding set of platitudes meant for publicity purposes. Many organizations do
adopt such statements but probably they do so for emphasizing their identity and
character.
 It should be motivating.
A mission statement should be motivating for members of the
organization and of society, and they should feel it worthwhile working for such
an organization or being its customers.
 It should indicate major components of strategy.

A mission statement along with the organizational purpose should indicate
the major components of the strategy to be adopted.
 It should indicate how objectives are to be accomplished.

Besides indicating the broad strategies to be adopted, a mission statement
should also provide clues regarding the manner in which the objectives are to be
accomplished. These mission statements specially deal with the objectives to be
achieved within a given time period.
Examples of Business Vision and Mission
 Jollibee Food Corporation

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Mission
To serve great tasting food, bringing the joy of eating to everyone.
Vision
*We excel in providing great tasting food that meets local preferences better than
anyone.
*We provide superior dining experience, through FSC (Food, Service,
Cleanliness) excellence in every encounter.
*We are the most cost efficient restaurant company in our business segments,
allowing us to price at the most popular levels.
*Our people are passionate about their work and thrive in a high performance
culture.
*We strive to become a model corporate citizen by being relevant to the
communities we serve.
*Our brands are either #1 or #2 in each of our market segments.
*It is the vision of JFC to become one of the three largest and most profitable
restaurant companies in the world by 2020.
 Resorts World Manila
Vision
Thrill the world every chance we get.
Mission
Create world-class experiences with a Filipino touch.
 Philippine Airlines
Vision
*To be the airline of choice in all markets we serve.
*To be the source of pride for Filipinos everywhere.
Mission
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*To deliver safe, reliable, efficient, and pleasant travel experience exceeding
passenger expectations.
*To provide a satisfying career to our employees and adequate returns to
stockholders.
*To represent the best of the Philippines, the Best of Filipino to the world.
 2GO Group Inc.
Vision
We envision to go where our clients want to go as their first choice for logistics in
the Philippines.
Mission
*In integrating our capabilities and expertise across the Group, we make it our
everyday mission to deliver goods on time, consistently, in their best condition,
and to transport our passengers reliably, comfortably, safely.
*In serving our clients, we are here to deliver competitive returns for our
shareholders and uphold the highest standards of corporate governance.
*We also make it a practice to look after the welfare of our employees and create
a fulfilling environment of growth and shared achievement.
*Moreover, our objective is to yield mutually beneficial long-term partnerships
with our service providers.
*At 2GO, it is our goal to be responsible corporate citizens, looking after the
environment and the community.
Conclusion
Appropriate vision and mission statements enable an organization to attain

competitiveness in the market. This implies that mission and vision statements of an
organization should be designed following the right criteria for the organization to
succeed. Every organizations has a unique purpose and reasons for being. This
uniqueness should be reflected in vision and mission statements. As the first step in
strategic management, the vision and mission is the “first direction for all planning
activities”.
They should focus on the needs of customers and the market since satisfaction of
customer’s needs is a critical issue that an organization should focus on. They should
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motivate employees and treat them as important individuals who contribute towards
organizational success.
In addition, developing and communicating a clear business vision and mission
are the most commonly overlooked tasks in strategic management. Moreover, mission
and vision statements should assist the management to make critical decisions, which
play an important role towards achievement of organizational goals.
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College for Research & Technology of Cabanatuan

Burgos Ave., Cabanatuan City 3100

Strategy Formulation – Vision and Mission

What is Business Vision Statement?

We define Strategic Vision as “What the organization hopes to become…the

Five Attributes of an Effective Strategic Vision Statement

Importance (Benefits) of Vision Statements

 Service quality standards - to make customers priority

 Passion - which you and your staff enjoy what to do

 Sustainability - that you are financially and environmentally sustainable.

 should reveal the types of business

 be clear and inspiring

3 Key Reason Why Having A Business Vision is Crucial

 It provides a focal point for goal setting and business planning

Characteristics of Business Vision

(An example of a vision statement of typical length is the following: We strive

 Clarity - A vision should unite the organization and provide a stable,

 Abstract and Challenging - An effective vision statement sets an abstract

(The following vision statement does a good job at communicating an

 States the Organization’s Purpose - A vision should state a general idea of

 Future Focused Good vision statements are long-term, describing the

(The following is an example of a future-oriented vision statement: Our goal

 Sets a Desirable Goal A good vision statement inspires followers by setting a

 The organization’s uniqueness

 Employees’ worth and efficacy

What is Business Mission Statement?

Importance (Benefits) of Mission Statements

Mission statements create the core identity of a company and establish a

Mission statements help companies and employees connect with members

Characteristics of Business Mission

organization stand for. In order to be effective, the following characteristics of mission

 It should indicate major components of strategy.

 It should indicate how objectives are to be accomplished.

Examples of Business Vision and Mission

 Jollibee Food Corporation

 Resorts World Manila

 2GO Group Inc.

Appropriate vision and mission statements enable an organization to attain

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