Chapter 2

The Business Vision & Mission

Strategic Management:
Concepts & Cases
Fred David

Ch 2 -1
Last lecture query
If any?

Ch 2 -2
Activity time!
Write a short idea about your own desirable
business?

Ch 2 -3
Chapters objectives:
1. Role of vision & mission statement
2. Process of developing a mission statement is as
important as a resulting document.
3. Identify the components of mission statement
4. Evaluations
5. Good vision & mission statement.

Ch 2 -4
Dollar General Corporation
(Case study)
Mission statement and Vision statement provides
practical framework.

625 new stores

6,000 new employees
214% profit increment
Mass retailing and “promotional campaign”.

Ch 2 -5
 What Research says?
In a recent study, researchers concluded that
90 percent of all companies have used a
mission statement in previous last 5 years.

Ch 2 -6
Chapter Initials!
oConcepts & tools to evaluate
oPractical framework
oTypes of organization
oInternal & external factors should be considered
oIdeas/belief
oRevision the set of belief
oDisplay

Ch 2 -7
Vision statement (Foundation)
What do we want to become?

Shared Vision helps to --

◦ Creates commonality of interests
◦ Reduce conflicts
◦ Provides opportunity & challenge

◦ “Firms strives to achieve in a long term!”

Ch 2 -8
Vision Statement Examples

To be the first choice in the printed communications

business. The first choice is the best choice, and
being the best is what Atlanta Web pledges to work
hard at being—every day!

-- Atlanta Web Printers, Inc.

Ch 2 -9
Example no 2!
General motors’ Vision:

“To be the world leader in

transportation products and related
services.”

Ch 2 -10
Mission Statement

“What is our business?”

Ch 2 -11
 Mission Statements
(Reason of existence)
•Contribution of Peter Drucker
•Enduring statement of purpose
•Helps to proceed
•Distinguishes one firm from another
•Creed statement
•First step of Strategic management process
(foundation)
Ch 2 -12

•Sometimes for fashion and trend

Vision & Mission

Worldwide development.
•Strategic part should not be
overlooked.
•Profit & vision are necessary to
effectively motivate a workforce

Ch 2 -13
Mission Statement Examples

The Bellevue Hospital, with respect, compassion,

integrity, and courage, honors the individuality and
confidentiality of our patients, employees, and
community, and is progressive in anticipating and
providing future health care services.

-- The Bellevue Hospital

Ch 2 -14
 Process of developing Vision &
Mission statement
Group of managers or outside consultant develop and
modify existing statement.
Several articles reading, analysis, preparation of first draft,
then modification, additions, deletion is needed and the
revised and finalized after the consent of all relevant
concerns.

Emotional bond
Sense of mission

Ch 2 -15
Importance of Mission

Benefits from a strong mission

Unanimity of Purpose

Resource Allocation
Mission
Organizational Climate

Focal point for work

structure

Ch 2 -16
Mission statement
A Declaration of attitude
Customer Orientation

• Broad enough to allow for growth

• Distinguishes firm from all others
• Stated clearly – understood by all

Ch 2 -17
Social Policy & Mission

Social policy should be integrated in all

strategic-management activities.

Mission should convey the social

responsibility of the firm.

Ch 2 -18
Vision & Mission

Research results are mixed, however,

firms with formal mission statements --

2x average return on shareholder’s equity

Positive relationship to company performance
30% higher return on certain financial measures

Ch 2 -19
Benefits of having a clear
vision & mission
Achieve clarity
Provide basis
Direction
Focal point resolve divergent views
Sense of shared expectations
Project a sense of worth
Project an organized way (motivation)
Organizational performance
Synergy

Ch 2 -20
 Products
Services Markets
Customers

Technology

Employees
Mission
Elements

Survival
Growth
Profit
Public
Image
Self-Concept Philosophy

Ch 2 -21
Components…

Ch 2 -22
Cont..

Ch 2 -23
Another perspective!
According to Bart, commercial mission statement of an organization
consists of 3 components:
1. Key market:
Who is your target client/customer?
2. Contribution:
What product or service do you provide to that client?
3. Distinction:
What makes your product or service unique so that the client would
choose you?

Ch 2 -24
Characteristics of good
mission statement
1. Scope (broad)
2. Words (preferable less than 250 words)
3. Inspiring
4. Utility of products
5. Social aspects
6. Environmental aspects
7. 9 components
8. Reconciliatory
9. Enduring

Ch 2 -25
Writing & evaluating
mission statement
Comparison
Components
Justified
Consent
Informative & clarity

Ch 2 -26
Ch 2 -27
Pepsi company’s mission (2013)
“Our mission is to be the world's premier
consumer products company focused on
convenient foods and beverages. We seek to
produce financial rewards to investors as we
provide opportunities for growth and enrichment
to our employees, our business partners and the
communities in which we operate. And in
everything we do, we strive for honesty, fairness
and integrity.”

Ch 2 -28
 Whole foods mission statement 2013

Whole Foods Market doesn’t have an official mission statement, but expresses it
through the core values:
Our Core Values:
We sell the highest quality natural and organic products available
We satisfy, delight and nourish our customers
We support team member excellence and happiness
We create wealth through profits & growth
We serve and support our local and global communities
We practice and advance environmental stewardship
We create ongoing win-win relationships with our suppliers
We promote the health of our stakeholders through healthy eating education”

Ch 2 -29
Mission Statement Evaluation Matrix

COMPONENTS          

Concern for
Survival,
Products Growth,
Organization Customers Services Markets Profitability Technology

           

PepsiCo

Whole foods

           

Ch 2 -30
Mission Statement Evaluation Matrix

COMPONENTS          

Self- Concern for Concern for

Organization Philosophy Concept Public Image Employees

         

PepsiCo

Ben & Jerry's

         

Ch 2 -31
Task for the next class
Develop vision and mission statement of your
company (business idea), which you have explored
earlier in this chapter.

Ch 2 -32
Thank you

Ch 2 -33