Course Code: MGT502

Course Title: STRATEGIC MANAGEMENT

Lecture 03: Strategic Formulation: Vision and Mission

Department : Business Administration

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Contents

S. # Topics Page #
1 Business vision and mission 3–5
2 Importance of vision and mission 6 – 10
3 A Resolution of divergent views. 11 – 12
5 References l Sources 13

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Reference No: 1
Business Vision and Mission

The Business Vision & Mission:

Many Organizations develop both a mission statement and vision
statement whereas the mission statement answer the question “What
is our Business” , the vision statement answer the question “what do we
want to become”(David, 2007,p.60)1
Vision and mission statements are needed before alternatives strategies
can be formulated and implemented.

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Reference No: 2
Business Vision and Mission

1. Nestle vision and mission statement:

“To be a leading, competitive, Nutrition, Health and Wellness

Company delivering improved shareholder value by being a
preferred corporate citizen, preferred employer, preferred supplier
selling preferred products”(Nestle)2

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Reference No: 3
Business Vision and Mission

• Pakistan telecommunication Pvt. Ltd.

• Vision
To be the leading and most admired Telecom and ICT provider in and
for Pakistan.
• Mission
To be the partner of choice for our customers, to develop our people
and to deliver value to our shareholders(ptcl.com.pk)3

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Reference No: 1

Importance of Vision and Mission

The importance(benefits) of vision and mission

statements to effective strategic management is
well documented in the literature, although
research results are mixed.

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Reference No:

Importance of Vision and Mission

Organizations carefully develop a written mission statement in

order to keep the following benefits:

•To ensure unanimity of purpose within the

organization.

• To provide a basis, or standard, for allocating

organizational resources

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Reference No:

Importance of Vision and Mission

•To establish a general tone or organizational climate.

•To serve as a focal point for individuals to identify with

the organization’s purpose and direction, and to deter
those who cannot from participating further in the
organization’s activities.

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Reference No:

Importance of Vision and Mission

•To facilitate the translation of objectives into a

work structure involving the assignment of tasks to
responsible elements within the organization

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Reference No: 3

Importance of Vision and Mission

•To specify organizational purposes and then to translate

these purposes into objectives in such a way that cost,
time and performance parameters can be assessed and
controlled(David,2007,p.62)3 .

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Reference No: 4

A Resolution of Divergent Views

• Developing a comprehensive mission statement is important

because divergent views among managers can be revealed and
resolved through the process.

• The question “ What is our business?” can create

controversy.

• Raising the question often reveals difference among

strategists in the organization(David,2007,p.62) 4.
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Reference No: 5

A Resolution of Divergent Views

• An organization that fails to develop a vision statement as well

as a comprehensive and inspiring mission statement loses the
opportunity to present itself favorably to existing and potential
stakeholders.

• The vision and mission statements are effective vehicles for

communicating with important internal and external stakeholders
(David,2007,p.63 - 64)5.
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References:

Fred R. David(2007), Strategic Management: concept and cases, eleventh (Eds),(p. 60) New Jersey,
Prentice Hall.
Fred R. David(2011), Strategic Management: concept and cases, 16th (Eds),(p. 62) New Jersey,
Prentice Hall.
Fred R. David(2007), Strategic Management: concept and cases, eleventh (Eds),(pp. 63-64) New
Jersey, Prentice Hall.

Sources:
https://www.nestle-esar.com/aboutus/missionvision

https://ptcl.com.pk/Home/PageDetail?ItemId=345&linkId=900
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