CMBA917 – Strategic Management

Chapter-2
Vision and Mission Statement

Dr. Jayendira P.Sankar

 Vision - Meaning
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.
The vision statement should be short, preferably one
sentence, and as many managers as possible should have
input into developing the statement.
Vision - Examples
1. General Motors’ vision is to be the world
leader in transportation products and
related services.
2. Dell’s vision is to create a company
culture where environmental excellence
is second nature.
3. Procter & Gamble’s vision is to be, and be
recognized as, the best consumer
products company in the world.
 Mission - Meaning
The mission statement is a declaration of an organization’s
“reason for being.” It answers the pivotal question “What is
our business?” A clear mission statement is essential for
effectively establishing objectives and formulating strategies.
A statement “defining our business,” a mission statement
reveals what an organization wants to be and whom it wants
to serve.
Mission - Examples
1. Dell’s mission is to be the most successful
computer company in the world at delivering
the best customer experience in markets we
serve. In doing so, Dell will meet customer
expectations of highest quality; leading
technology; competitive pricing; individual
and company accountability; best-in-class
service and support; flexible customization
capability; superior corporate citizenship;
financial stability.
Mission - Examples
2. Procter & Gamble will provide branded
products and services of superior quality
and value that improve the lives of the
world’s consumers. As a result, consumers
will reward us with industry leadership in
sales, profit, and value creation, allowing
our people, our shareholders, and the
communities in which we live and work to
prosper.
 Developing Vision & Mission
1. Select several articles about that statement and managers to
prepare background information.
2. All managers themselves to prepare a vision and mission
statement.
3. Committee of top managers merge the managers into single
document and prepare the draft.
4. A request for modifications, addition and deletion with
meeting to revise.
5. All managers have input into and support final documents.
 Benefits of Vision & Mission
1.Achieve clarity of purpose among all managers and
employees.
2.Provide a basis for all other strategic planning activities,
including the internal and external assessment, establishing
objectives, developing strategies, choosing among
alternative strategies, devising policies, establishing
organizational structure, allocating resources, and
evaluating performance.
3.Provide direction.
 Benefits of Vision & Mission
4. Provide a focal point for all stakeholders of the firm.
5. Resolve divergent views among managers.
6. Promote a sense of shared expectations among all
managers and employees.
7. Project a sense of worth and intent to all stakeholders.
8. Project an organized, motivated organization worthy of
support.
9. Achieve higher organizational performance.
10. Achieve synergy among all managers and employees.
Mission Statement Components
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?
4. Technology - Is the firm technologically current?
5. Concern for survival, growth, and profitability -
Is the firm committed to growth and financial
soundness?
Mission Statement Components
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. Concern for employees - Are employees a
valuable asset of the firm?
Tesla, Amazon
• “To create the most compelling car company
of the 21st century by driving the world’s
transition to the electric vehicle.”
• ” To accelerate the world’s transition to
sustainable transport.”
• “To be earth’s most customer-centric
company where the customer can find and
discover anything they might want to buy
online.”
• “We Strive to offer our customer the lowest
possible prices, The best available selection &
utmost convenience.