Chapter Two

Chapter Two
Vision and Mission

Analysis
01/21/2021 2-1
Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall
Chapter Objectives
1. Describe the nature and role of vision and mission
statements in strategic management.
2. Discuss why the process of developing a mission
statement is as important as the resulting document.
3. Identify the components of mission statements.
4. Discuss how clear vision and mission statements can
benefit other strategic-management activities.
5. Evaluate mission statements of different
organizations.
6. Write good vision and mission statements.
01/21/2021 2-2
Vision : What Do We Want to Become?
 A vision statement should answer the basic question, “What

do we want to become?”
 the firm strives to achieve in the long term.
 The vision statement should describe what the ultimate goal
or final result will be.
 The vision statement should be short, preferably one
sentence, and as many managers as possible should have
input into developing the statement.
 A clear vision provides the foundation for developing a

comprehensive mission statement.
01/21/2021 2-3
cont......
VISSION

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BASIC QUESTIONS
what do you like to have in your life?

what you need people say about you?
what you need to contribute to your
family, community and country?
how you need to change community
and what should be your
involvement?

QUOTE
“ The wind never helps the boat

that has no clear destination.”
Seneca
9
CONT...
WHY ESTABLISH VISION?
 1. You take control of your life
 2. You focus on the important things
 3. You will make good decisions
 4. You can finish the task efficiently
 5. You are closer to success

Vision Statement Examples
2-11
Mission statement: What Is Our Business?
 Mission statement
 a declaration of an organization’s “reason for
being.”
 An enduring statement of purpose that
distinguishes one organization from other
similar enterprises,
 answers the pivotal question “What is our
business?”
 essential for effectively establishing
objectives and formulating strategies
01/21/2021 2-12
Mission cont...
 Mission statement
 reveals what an organization wants to be and whom it
wants to serve
 Also called a creed statement, a statement of purpose, a
statement of philosophy, a statement of beliefs, and a
statement of business principles
 A business mission is the foundation for priorities,

strategies, plans, and work assignments.
 It is the starting point for the design of managerial jobs
01/21/2021 2-13
The Process of Developing Vision and
Mission Statements
1. Select several articles about these statements and ask all

managers to read these as background information.
2. Ask managers themselves to prepare a vision and
mission statement for the organization.
3.Merge these statements into a single document and

distribute the draft statements to all managers.
4. Process should create an “emotional bond” and “sense
of mission” between the organization and its employees
01/21/2021 2-14
Importance of Vision and
Mission Statements
1. To make sure all employees/managers

understand the firm’s purpose or reason for
being.
2. To provide a basis, or standard, for allocating
organizational resources
3. To provide a basis for prioritization of key
internal and external factors utilized to formulate
feasible strategies.
01/21/2021 2-15
Importance of cont.......
4. To serve as a focal point for individuals to

identify with the organization’s purpose and
direction
5. To provide a basis for organizing work,

departments, activities, and segments around
a common purpose
01/21/2021 2-16
Benefits of Having a Clear
Mission and Vision
2-17
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?
01/21/2021 2-18
5. Concern for survival, growth, and

profitability—Is the firm committed to
growth and financial soundness?
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?
01/21/2021 2-19
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?
01/21/2021 2-20
Characteristics of a
Mission Statement
2-21

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Chapter Two

Vision and Mission

 A vision statement should answer the basic question, “What

 A clear vision provides the foundation for developing a

Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

what do you like to have in your life?

Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

“ The wind never helps the boat

Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall

 A business mission is the foundation for priorities,

1. Select several articles about these statements and ask all

3.Merge these statements into a single document and

1. To make sure all employees/managers

4. To serve as a focal point for individuals to

5. To provide a basis for organizing work,

1. Customers—Who are the firm’s

5. Concern for survival, growth, and

8. Concern for public image—Is the firm

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