Chapter # 5

Vision and Mission Analysis

Vision Statements: What Do We Want to
Become?
• It is especially important for managers and executives in any
organization to agree on the basic vision that the firm strives to
achieve in the long term.
• Vision Statement: 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.
• Many organizations have both a vision and mission statement, but the
vision statement should be established first and foremost.
• The vision statement should be short, preferably one sentence.
Vision Statement Analysis
• Starbucks Coffee’s corporate vision is “to establish Starbucks as the
premier purveyor of the finest coffee in the world while maintaining
our uncompromising principles while we grow.”
• McDonald’s corporate vision is “to move with velocity to drive
profitable growth and become an even better McDonald’s serving
more customers delicious food each day around the world.”
• Unilever’s corporate vision is “to make sustainable living
commonplace. We believe this is the best long-term way for our
business to grow.”
Mission Statement Analysis
• McDonald’s corporate mission is “to be our customers’ favorite place
and way to eat and drink.”
• Starbucks Coffee’s corporate mission is “inspire and nurture the
human spirit – one person, one cup and one neighborhood at a
time.”
• Unilever’s corporate mission is “to add vitality to life. We meet
everyday needs for nutrition, hygiene and personal care with brands
that help people feel good, look good and get more out of life.”
Mission Statement: What is Our Business?
• A mission statement is a short statement of why an organization
exists, what its overall goal is, identifying the goal of its operations:
what kind of product or service it provides, its primary customers or
market, and its geographical region of operation.
The Process of Developing Vision and
Mission Statements
• As many managers as possible should be involved in the process of
developing these statements because, through involvement, people
become committed to an organization.
• During the process of developing vision and mission statements, some
organizations use discussion groups of managers to develop and
modify existing statements.
• Other organizations hire an outside consultant or facilitator to
manage the process and help draft the language.
The Importance (Benefits) of Vision and
Mission Statements
• King & Cleland recommend that organizations carefully develop a
written mission statement in order to reap the following benefits:
1. To make sure all employees/managers understand the firms purpose
or reason for being.
2. To provide a basis for prioritization of key internal and external
factors utilized to formulate feasible strategies.
3. To provide a basis for the allocation of resources.
4. To provide a basis for organizing work, departments, activities, and
segments around a common purpose.
• A Resolution of Divergent Views:
Table 5-2: Ten Benefits of Having a Clear Mission and Vision
Characteristics of a Mission Statement
• A mission statement is a declaration of attitude and outlook. It usually is broad
in scope for at least two major reasons.
1. First, a good mission statement allows for the generation and consideration
or a range of feasible alternative objectives and strategies.
2. Second, a mission statement needs to be broad to reconcile differences
effectively among, and appeal to, an organization’s diverse stakeholders
(individuals and groups).
Stakeholders 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.
• Mission statement should be reconciliatory
Table 5-3: Characteristics of a Mission Statement
• A customer Orientation
An effective mission statement describes an organizations purpose, customers,
products or services, markets, philosophy, and basic technology.
According to Vern Mcginnis, a mission should be:
1. Define what the organizations 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
5. Be stated in terms sufficiently clear to be widely understood throughout the
organization
Components of a Mission Statement
Evaluating and Writing Mission
Statements
• Two Mission Statement Critiqued
• Five Mission Statement Revised
• Two Mission Statements Proposed
Table 5-4: Mission Statement Components Written from a Customer
Perspective