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The Business

Vision
and Mission

Chapter Two
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Chapter Objectives
1.
2.

3.
4.
5.
6.

Describe the nature and role of vision and mission


statements in strategic management.
Discuss why the process of developing a mission
statement is as important as the resulting document.
Identify the components of mission statements.
Discuss how clear vision and mission statements can
benefit other strategic-management activities.
Evaluate mission statements of different
organizations.
How the core values are defined in accordance with
companies vision and mission.
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A Comprehensive StrategicManagement Model

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Vision

We choose to go to the moon.(John F Kennedy


1962)
I have a dream.Dr. Martin Luther King, Jr.
August 28, 1963
It is my unique responsibility as the leader to
shine a spotlight on the future.(Margaret
Thatcher,)Former Prime Minister of England

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What Do We Want to Become?


A vision statement should answer the basic

question, What do we want to become?


A short, inspiring statement of where youd
like to get to. It provides a unified
direction for everyone in an organization
and
is a continual source of inspiration
which cannot be achieved
A strong aspiration; Desired future state

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Vision
Criteria for a Meaningful Vision

A vision engages the heart and the spirit.


... leads toward a worthwhile goal.
... gives meaning to an effort.
... is simple.
... is attainable.
... can change over time.

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Some examples
Walt Disney:
To make people happy
Nike:
To experience the emotion of

competition, winning and crushing


competitors

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Vision Statement Examples

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Vision

Clear Business
Vision
Comprehensive
Mission Statement

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Mission Statement

Answers the question:


What is our business?

Reveals:
what the organization wants to be
whom we want to serve

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The fundamental
purpose that sets a
firm apart from other
firms of its type and
identifies the scope
of its operations in
product and market
terms(pearce)

An overriding
purpose in line with
the values and
expectations of
stakeholders .
Johnson & Scholes

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Mission
A mission is a brief statement that reflects the
core values of an organization.
A mission communicates an organizations
long-term objectives

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Questions Addressed By a Mission


Statement(pearce)

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Why is this firm in business?


What are our economic goals?
What is our operating philosophy in
terms of quality, company image, and
self-concept?
What are our core competencies and
competitive advantages?
What customers do and can we serve?
How do we view our responsibilities to
stockholders, employees, communities,
environment, social issues, and
competitors?

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Objectives of
developing mission
statement
A Mission Statement
Serves as a communication tool for an organization
Aligns people with a purpose; it fosters commitment and unity
Defines directions for change and growth
Acts as an evaluation tool to help measure activities and programs
reveals what an organization wants to be and whom it wants to serve

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Mission Statements are also called

Creed statement
Statement of purpose
Statement of philosophy
Statement of beliefs
Statement of business principles
A statement defining our business
Ch
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2013 Pearson Education, Inc. publishing as Prentice Hall

Characteristics of a Mission
Statement

First, a good mission statement allows for the


generation and consideration of a range of feasible
alternative objectives and strategies without unduly
stifling management creativity.
Second, a mission statement needs to be broad to
reconcile differences effectively among, and appeal to,
an organizations diverse stakeholders
Third, include employees, managers, stockholders,
boards of directors, customers, suppliers, distributors,
creditors, governments (local, state, federal, and
foreign), unions, competitors, environmental groups,
and the general public.
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Interest Groups

Shareholders /
Board
Senior
Management

Government /
Professional
associations

Middle Managers
/ Operating Core

Interest Groups

Technostructure
/ Support staff

Customers /
Competitors

Suppliers
Contract Staff /
Special Interest
Groups

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Products or
Services

Markets

Customers

Employees

Mission
Components

Technology

Survival,
Growth,
Profits

Public
Image
Self-Concept

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Philosophy

Mission Statement Components


1. CustomersWho are the firms
customers?
2. Products or servicesWhat are the
firms major products or services?
3. MarketsGeographically, where does
the firm compete?
4. TechnologyIs the firm technologically
current?
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Mission Statement Components


5. Concern for survival, growth, and
profitabilityIs the firm committed to
growth and financial soundness?
6. PhilosophyWhat are the basic beliefs,
values, aspirations, and ethical priorities
of the firm?
7. Self-conceptWhat is the firms
distinctive competence or major
competitive advantage?
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Mission Statement Components


8. Concern for public imageIs the firm
responsive to social, community, and
environmental concerns?
9. Concern for employeesAre
employees a valuable asset of the firm?

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Characteristics of a
Mission Statement

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Example Mission Statements

Fleetwood Enterprises will lead the recreational vehicle


and manufactured housing industries (2, 7) in providing
quality products, with a passion for customer-driven
innovation (1). We will emphasize training, embrace
diversity and provide growth opportunities for our
associates and our dealers (9). We will lead our
industries in the application of appropriate technologies
(4). We will operate at the highest levels of ethics and
compliance with a focus on exemplary corporate
governance (6). We will deliver value to our
shareholders, positive operating results and industryleading earnings (5).
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Example Mission Statements


We aspire to make PepsiCo the worlds (3)
premier consumer products company, focused
on convenient foods and beverages (2). We
seek to produce healthy financial rewards for
investors (5) as we provide opportunities for
growth and enrichment to our employees (9),
our business partners and the communities (8)
in which we operate. And in everything we do,
we strive to act with honesty, openness,
fairness and integrity (6).
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Example Mission Statements


Dells mission is to be the most successful
computer company (2) in the world (3) at
delivering the best customer experience in
markets we serve (1). In doing so, Dell will meet
customer expectations of highest quality; leading
technology (4); competitive pricing; individual and
company accountability (6); best-in-class service
and support (7); flexible customization capability
(7); superior corporate citizenship (8); financial
stability (5).
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Example Mission Statements


Procter & Gamble will provide branded
products and services of superior quality and
value (7) that improve the lives of the worlds
(3) consumers. As a result, consumers (1) will
reward us with industry leadership in sales,
profit (5), and value creation, allowing our
people (9), our shareholders, and the
communities (8) in which we live and work to
prosper.

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Example Mission Statements


At LOreal, we believe that lasting business
success is built upon ethical (6) standards
which guide growth and on a genuine sense
of responsibility to our employees (9), our
consumers, our environment and to the
communities in which we operate (8).

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Process of developing strategic


directions

Vision

Life-changing fitness experiences


every time, everywhere

Mission

To be number one in Group Fitness


experiences in all its markets and to be
a top 100 global brand

Values

Brave, Change the world, One tribe

Goal(s)

15,000 clubs, a four-program average


per club and 10 million people per
week working out in LES MILLS
classes by 2010

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The Process of Developing Vision


and Mission Statements
Select several articles about these
statements and ask all managers to read
these as background information.
Ask managers themselves to prepare a
vision and mission statement for the
organization.

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The Process of Developing Vision


and Mission Statements
Merge these statements into a single
document and distribute the draft
statements to all managers
Process should create an emotional
bond and sense of mission between
the organization and its employees

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Importance of Vision and


Mission Statements

To ensure unanimity of purpose within the organization


To provide a basis, or standard, for allocating organizational resources
To establish a general tone or organizational climate
To serve as a focal point for individuals to identify with the organizations purpose and direction
To facilitate the translation of objectives into a work structure
To specify organizational purposes
To serve as a focal point for individuals to identify with the organizations purpose and direction
To facilitate the translation of objectives into a work structure
To specify organizational purposes
Arouse positive feelings & emotions
Motivate readers to action
Generate favorable impression of the firm
Generate strategic alternatives
Not overly specific
Reconciles interests among diverse stakeholders

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Benefits of Having a Clear


Mission and Vision

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Newest Trends in Mission


Components

Sensitivity to customer wants

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The customer is our top priority!


Emphasis on extensive product safety programs
Concern for quality
Quality is job one!
Emphasis on quality in manufacturing
New philosophy quality is the norm
Statements of company vision
Developed to express the aspirations of the executive
leadership
Presents the firms strategic intent
A computer on every desk, and in every home, running on
Microsoft software

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Values
Guiding principles which affect how
will behave every day on the way to
fulfilling your mission
Values are core beliefs or desires that
guide or motivate our attitudes and
actions

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Origins of Values
Principles or standards
Personal Qualities
Character Traits
Codes of Ethics
Goals

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Examples

Walt Disney
No cynicism
Nurturing of wholesome American values
Creativity, dreams and imagination
Fanatical attention to consistency and detail
Preservation and control of the Disney Magic
Merck
Corporate social responsibility
Unequivocal excellence in all aspects of the company
Science based innovation
Honesty and integrity
Profit from work that benefits humanity

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Goals
Key benchmarks for achieving your
mission (must include quantifiable
targets)

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Organisational Objectives [2]

Generally SMART:

Specific
Measurable
Achievable
Realistic
Timely

Consistent with the Mission and Aim.


One direction, avoid dissonance!!!

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Objectives - Examples
A larger market share
Quicker design-to-market times than rivals
Higher product quality than rivals
Lower costs relative to key competitors
Broader / more attractive product line than rivals
A stronger reputation with customers than rivals
Superior customer service
Recognition as a leader in technology and/or

product innovation
Wider geographic coverage than rivals
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Concluding Remarks(Some
expert views)

To be an effective change leader, you must have strong vision.(HBR)


Vision& mission statements should be professionally developed and communicated through
broader stakeholders participation (HBR)
Statements are Difficult to develop particularly in turbulently changing time(HBR)
These Should reflect followers aspirations(James)
Leaders should be able to articulate vision overtime(James)
Statements should be straightforward and clear(Baldoni)
Create organizational and personal expectations(Baldoni)
Directs organizations and individuals(Baldoni)
Vision directs and inspire people in the right direction(Cohen)
Core values and core purpose remains same while strategies and practices have to be
changed(Collins)
Success depends upon successful balancing of continuity and change.(Collins)
Effective vision essentially give general direction, motivates people to take actions and
coordinate actions of different people.(Kotter)
Strong and influential vision is starting point of change
Vision should be constantly and effectively communicated to get peoples support(Kotter)

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