Vision Mission Goal

Fred R. DavidPrentice Hall

Ch. 2-1

Chapter 2Chapter 2The Business MissionThe Business Mission

Strategic Management:

Concepts and Cases. 9th edition

Fred R. David

PowerPoint Slides by

Anthony F. Chelte

Western New England College


Ch. 2-2

Chapter OutlineChapter Outline

• What Do We Want to Become?

• What Is Our Business?

• Importance of Vision and Mission Statements


Ch. 2-3

Chapter OutlineChapter Outline

• Characteristics of a Mission Statement

• Components of a Mission Statement

• Writing and Evaluating Mission Statements


Ch. 2-4

Vision & MissionVision & Mission

Vision is the art of seeing things invisible

-- Jonathan Swift

The very essence of leadership is that you have to have vision. You can’t blow an uncertain trumpet.

-- Theodore Hesburgh


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VisionVision

Management and executive agreement on the basic vision for which the firm strives to achieve in the long run is critically important.


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Vision statement answers the question:

“What do we want to become?”

VisionVision


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Clear vision

– Provides foundation for comprehensive mission statement

VisionVision


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Vision & MissionVision & Mission

• Vision statement developed first

• Short – preferably one sentence

• Broad management involvement


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Vision StatementsVision Statements

The Vision of the National Pawnbrokers Association is to have complete and vibrant membership that enjoys a positive public and political image and is the focal organization of all pawn associations.

--National Pawnbrokers Association


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The Bellevue Hospital is the LEADER in providing resources necessary to realize the community’s highest level of HEALTH throughout life.

--The Bellevue Hospital


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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.


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It is the vision of the California Energy Commission for Californians to have energy choices that are affordable, reliable, diverse, safe, and environmentally acceptable.

--California Energy Commission


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Mission StatementsMission Statements

Recent Data indicate that:

– 90% of all companies have used a mission statement sometime in the previous five years.


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Mission statement answers the question:

“What is our business?”


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Mission Statement:

– Enduring statement of purpose– Distinguishes one organization from

another in similar enterprises– Declaration of an organization’s “reason for

being”


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Mission Statements also referred to as:

– Creed statement– Statement of purpose– Statement of philosophy– Statement of business principles


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Mission Statements

– Reveal what an organization wants to be and whom it wants to serve


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Mission Statements

– Essential for effectively establishing objectives and formulating strategies


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Vision and MissionVision and Mission

• Many organizations develop both vision and mission statements

• Profit and vision are necessary to effectively motivate a workforce

• Shared vision creates a commonality of interests


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Developing Vision & MissionDeveloping Vision & Mission

• Clear mission is needed before alternative strategies can be formulated and implemented

• Important to have as broad range of participation as possible among managers in developing the mission


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Mission Statement

“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.”


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The Mission of USGS is to serve the Nation by providing reliable scientific information to

• Describe and understand the Earth;• Minimize loss of life and property from natural

disasters;• Manage water, biological, energy, and mineral

resources; and enhance and protect our quality of life.



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“It is the California Energy Commission’s mission to assess, advocate, and act through improve energy systems that promote a strong economy and a healthy environment.”



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Importance of MissionImportance of Mission

• Unanimity of purpose within the organization• Basis for allocating resources• Establish organizational climate• Focal point for direction• Translate objectives into work structure• Cost, time and performance parameters

assessed and controlled


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Mission CharacteristicsMission Characteristics

Effective mission statements:

• Broad in scope• Generate range of feasible strategic

alternatives• Not excessively specific• Reconcile interests among diverse

stakeholders• Finely balanced between specificity &

generality


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• Arouse positive feelings and emotions• Motivate readers to action• Generate the impression that firm is

successful, has direction, and is worthy of time, support, and investment



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• Reflect judgments re: future growth• Provide criteria for selecting strategies• Basis for generating & screening strategic

options• Are dynamic in orientation



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Customer OrientationCustomer Orientation

According to Vern McGinnis, mission should:

• Define what the organization is• Define what the organization aspires to be• Limited to exclude some ventures• Broad enough to allow for creative growth• Distinguish the firm from all others• Serve as framework to evaluate current

activities• Stated clearly so that it is understood by all


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A good mission statement reflects the anticipations of customers.

• Identify customer needs

• Provide product/service to satisfy needsAT&T’s mission focuses on communications, not

telephonesExxon’s mission focuses on energy, not on oil

and gas

Customer OrientationCustomer Orientation


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Social Policy & MissionSocial Policy & Mission

Managerial philosophy and thinking at the highest levels in the organization reflect social policy.

• Affects development of vision & mission

• Responsibilities to consumers, environmentalists, minorities, communities, & other groups


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• Social policy should be integrated in all strategic-management activities.

• Mission statement is an effective instrument for conveying the social responsibility of the firm.

Social Policy & MissionSocial Policy & Mission


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Components of MissionComponents of Mission

Mission statements vary in…

Length Content Format Specificity

Must include the 9 elements, as the mission statement is the most public and visible part of the strategic-management process.


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1. Customers2. Products or services3. Markets4. Technology5. Survival, growth, and profitability6. Philosophy7. Self-concept8. Concern for public image9. Concern for employees

Mission ComponentsMission Components


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Components of mission and corresponding questions to be answered:

• Customers: “Who are the firm’s customers?”

• Products or services:“What are the firm's major products or

services?”


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• Markets:“Geographically, where does the firm

compete?”

• Technology:“Is the firm technologically current?”


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• Concern for survival, growth, and profitability: “Is the firm committed to growth and

financial soundness?”

• Philosophy:“What are the basic beliefs, values,

aspirations, and ethical priorities of the firm?”


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• Self-concept: “What is the firm’s distinctive competence or major

competitive advantage?”

• Concern for public image:“Is the firm responsive to social, community, and

environmental concerns?”

• Concern for employees:“Are employees a valuable asset of the firm?”


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Importance of Vision & MissionImportance of Vision & Mission

Although research results are mixed, firms with formal mission statements…

• 2X average return on shareholder’s equity

• Positive relationship to organizational performance

• 30% higher return on certain financial measures


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PepsiCo Mission StatementPepsiCo Mission Statement

PepsiCo’s mission is to increase the value of our shareholders’ investment. We do this through sales growth, cost controls, and wise investment resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.


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Ben & Jerry’s Mission StatementBen & Jerry’s Mission Statement

Ben & Jerry’s mission is to make, distribute and sell the finest quality all-natural ice cream and related products in a wide variety of innovative flavors made from Vermont dairy products. To operate the Company on a sound financial basis of profitable growth, increasing value for our shareholders, and creating career opportunities and financial rewards for our employees. To operate the Company in a way that actively recognizes the central role that business plays in the structure of society by initiating innovative ways to improve the quality of life of a broad community—local, national and international.


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COMPONENTS

Organization CustomersProducts Services Markets

Concern for Survival, Growth,

Profitability Technology

PepsiCo Yes No No Yes No

Ben & Jerry's No Yes Yes Yes No

Evaluation Matrix of Mission StatementsEvaluation Matrix of Mission Statements


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Evaluation Matrix of Mission StatementsEvaluation Matrix of Mission Statements

COMPONENTS

Organization PhilosophySelf-

ConceptConcern for Public Image

Concern for Employees

PepsiCo Yes No No No

Ben & Jerry's No Yes Yes Yes


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Key Terms & ConceptsKey Terms & Concepts

• Concern for Employees

• Concern for Public Image

• Concern for Survival, Growth, and Profitability

• Creed Statement


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• Customers

• Markets

• Mission Statement Components

• Philosophy


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• Self-Concept

• Social Policy

• Stakeholders

• Vision Statement

Documents

Vision Mission Goal