Chapter 2

The Business Vision &

Mission

Copyright 2007 Prentice Hall Ch 2 -1

• A vision statement should answer the
basic question,
“What do we want to become?”

• The vision statement should be short,

preferably one sentence, and as many
managers as possible should have
input into developing the statement
Copyright 2007 Prentice Hall Ch 2 -2
Vision & Mission

Shared Vision --
• Creates commonality of interests
• Reduce daily monotony
• Provides opportunity & challenge

Copyright 2007 Prentice Hall Ch 2 -3

Vision Statement Examples

Tyson Foods’ vision is to be the world’s

first choice for protein solutions while
maximizing shareholder value.

Copyright 2007 Prentice Hall Ch 2 -4

… Vision Statement Examples

General Motors’ vision is to be the world

leader in transportation products and
related services.

Copyright 2007 Prentice Hall Ch 2 -5

… Vision Statement Examples
• PepsiCo’s responsibility is to
continually improve all aspects of the
world in which we operate—
environment, social, economic—
creating a better tomorrow than today.
• It is too vague;
• Its engagement on beverage and food
business be stated.

Copyright 2007 Prentice Hall Ch 2 -6

… Vision Statement Examples
• Dell’s vision is to create a company culture
where environmental excellence is second
nature.

• It is too vague; it should disclose its

engagement in computer business in some
manner;
• the word environmental is generally used to
refer to natural environment so is unclear in its
use here
Copyright 2007 Prentice Hall Ch 2 -7
… Vision Statement Examples
• Samsonite’s vision is to provide
innovative solutions for the traveling
world.

• It needs to be more specific, such as

mentioning luggage, as it could refer to
air carriers or cruise lines, which is not
good

Copyright 2007 Prentice Hall Ch 2 -8

… Vision Statement Examples
• Royal Caribbean’s vision is to empower
and enable our employees to deliver the
best vacation experience for our guests,
thereby generating superior returns for
our shareholders and enhancing the
well-being of our communities.
• It is good but could end after the word
“guests”. The statement is too long.

Copyright 2007 Prentice Hall Ch 2 -9

… 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.

Copyright 2007 Prentice Hall Ch 2 -10

Mission Statement

“What is our business?”

Copyright 2007 Prentice Hall Ch 2 -11

Mission Statement

“What is our business?”

is synonymous with asking the
question
“What is our mission?”
Peter Drucker

Copyright 2007 Prentice Hall Ch 2 -12

Mission Statements

•Enduring statement of purpose

•Distinguishes one firm from another
•Declares the firm’s reason for being

Copyright 2007 Prentice Hall Ch 2 -13

Mission Statements

Clear mission statement is essential for

effectively establishing objectives
and formulating strategies

Copyright 2007 Prentice Hall Ch 2 -14

Mission Statements

Is also called as a creed statement,

 a statement of purpose,
 a statement of philosophy,
 a statement of beliefs,
 a statement of business principles,
or a statement “defining our
business,”
 a mission statement reveals what an
organization wants to be and whom
it wants to serve.
Copyright 2007 Prentice Hall Ch 2 -15
Mission Statements

A business mission is the foundation for

priorities, strategies, plans, and work
assignments. It is the starting point for
the design of managerial jobs and, above
all, for the design of managerial
structures.

Peter Drucker

Copyright 2007 Prentice Hall Ch 2 -16

Vision & Mission

Profit & vision are necessary to

effectively motivate a workforce

Copyright 2007 Prentice Hall Ch 2 -17

The Process of Developing Vision and
Mission Statements
• Involve as many managers as possible
( results in committed people in the
organization).
• Select several articles about these
statements and ask all managers to read
these as background information.
• Ask managers themselves to prepare a
vision and mission statement for the
organization.

Copyright 2007 Prentice Hall Ch 2 -18

…The Process of Developing Vision
and Mission Statements
• A facilitator, or committee of top managers,
should then merge these statements into a
single document and distribute the draft
statements to all managers.
• A request for modifications, additions, and
deletions is needed next, along with a
meeting to revise the document.
•

Copyright 2007 Prentice Hall Ch 2 -19

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

Copyright 2007 Prentice Hall Ch 2 -20

Importance of Mission and Vision

Unanimity of Purpose

Resource Allocation
Organizational Climate
Focal point for work
Mission structure
Translation of purpose to
- objective –structure -
- task assignments
A resolution of
divergent views
Copyright 2007 Prentice Hall … Ch 2 -21
Benefits of Having a Clear Mission
and Vision
• Achieve clarity of purpose among all
managers and employees.
• Provide a basis for all other strategic
planning activities, including the internal
and external assessment, establishing
objectives, developing strategies, choosing
among alternative strategies, devising
policies, establishing organizational
structure, allocating resources, and
evaluating performance.
Copyright 2007 Prentice Hall Ch 2 -22
… Benefits of Having a Clear
Mission and Vision
• Provide direction.
• Provide a focal point for all
stakeholders of the firm.
• Resolve divergent views among
managers.
• Promote a sense of shared
expectations among all managers
and employees.
Copyright 2007 Prentice Hall Ch 2 -23
… Benefits of Having a Clear
Mission and Vision
• Project a sense of worth and intent
to all stakeholders.
• Project an organized, motivated
organization worthy of support.
• Achieve higher organizational
performance.
• Achieve synergy among all
managers and employees.
Copyright 2007 Prentice Hall Ch 2 -24
Characteristics of a Mission
Statement

• A Declaration of Attitude

• A Customer Orientation

• Include nine components

Copyright 2007 Prentice Hall Ch 2 -25

Characteristics of a Mission Statement: A
Declaration of Attitude
• is a declaration of attitude and outlook.
• It is broad for two major reasons:
– To allow for the generation and
consideration of a range of feasible
alternative objectives and strategies
without unduly stifling management
creativity.
– to reconcile differences effectively
among, and appeal to, an organization’s
diverse stakeholders
Copyright 2007 Prentice Hall Ch 2 -26
Characteristics of a Mission Statement: A
Declaration of Attitude
• Thus a mission statement should be
reconcilatory.
• Stakeholders include
– employees,
– managers,
– stockholders,
– boards of directors,
– customers,

Copyright 2007 Prentice Hall Ch 2 -27

Characteristics of a Mission Statement: A
Declaration of Attitude
– suppliers,
– distributors,
– creditors,
– governments
– (local, state, federal, and foreign),
unions, competitors, environmental
groups, and
– the general public.

Copyright 2007 Prentice Hall Ch 2 -28

Characteristics of a Mission Statement: A
Declaration of Attitude
• A good mission statement indicates
the relative attention that an
organization will devote to meeting
the claims of various stakeholders.

Copyright 2007 Prentice Hall Ch 2 -29

Characteristics of a Mission Statement: A
Declaration of Attitude
• An effective mission statement
– should not be too lengthy; recommended
length is less than 250 words
– arouse positive feelings and emotions
about an organization
– inspiring
– Enduring
– Generates the impression that a firm is
successful, has direction, and is worthy of
time, support, and investment
Copyright 2007 Prentice Hall Ch 2 -30
Characteristics of a Mission Statement: A
Declaration of Attitude
– reflects judgments about future
growth directions and strategies
– Reveal that the firm is socially responsible
– Reveal that the firm is environmentally
responsible
– provide useful criteria for selecting
among alternative strategies.
– should be dynamic in orientation,

Copyright 2007 Prentice Hall Ch 2 -31

Characteristics of a Mission Statement: A
Customer Orientation
• A good mission statement describes
an organization’s
– purpose,
– customers,
– products or
– services,
– markets,
– philosophy, and
– basic technology.
Copyright 2007 Prentice Hall Ch 2 -32
Mission & Customer
Orientation – Vern McGinnis

• Define what the organization is

• Define what it aspires to be
• Limited to exclude some ventures
• Broad enough to allow for growth
• Distinguishes firm from all others
• Stated clearly – understood by all

Copyright 2007 Prentice Hall Ch 2 -33

Characteristics of a Mission Statement: A
Customer Orientation
• A good mission statement
– reflects the anticipations of customers.

– identify the utility of a firm’s products

to its customers. (Do not offer things,
offer benefits)

Copyright 2007 Prentice Hall Ch 2 -34

Characteristics of a Mission Statement: A
Customer Orientation
• AT&T’s mission statement focuses on
communication rather than on telephones;
• ExxonMobil’s mission statement focuses on
energy rather than on oil and gas;
• Union Pacific’s mission statement focuses
on transportation rather than on railroads;
• Universal Studios' mission statement
focuses on entertainment rather than on
movies.

Copyright 2007 Prentice Hall Ch 2 -35

 Products
Services Markets
Customers

Technology

Employees
Mission
Elements

Survival
Growth
Profit
Public
Image
Self-Concept Philosophy

Copyright 2007 Prentice Hall Ch 2 -36

Characteristics of a Mission
Statement: Include nine 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?
Copyright 2007 Prentice Hall Ch 2 -37
Characteristics of a Mission
Statement: Include nine components
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?
Copyright 2007 Prentice Hall Ch 2 -38
Characteristics of a Mission
Statement: Include nine components
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?

Copyright 2007 Prentice Hall Ch 2 -39

PepsiCo’s Mission

• We aspire to make PepsiCo the world’s

premier consumer products company,
focused on convenient foods and beverages.
We seek to produce healthy financial rewards
for 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 to act with honesty, openness,
fairness and integrity.

Copyright 2007 Prentice Hall Ch 2 -40

Ben & Jerry’s Mission
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.
Copyright 2007 Prentice Hall Ch 2 -41
Mission Statement Evaluation Matrix

COMPONENTS          

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

           

PepsiCo

Ben & Jerry's

Copyright 2007 Prentice Hall Ch 2 -42

Mission Statement Evaluation Matrix

COMPONENTS          

Self- Concern for Concern for

Organization Philosophy Concept Public Image Employees

         

PepsiCo

Ben & Jerry's

Copyright 2007 Prentice Hall Ch 2 -43

Mission Statement Evaluation Matrix

COMPONENTS          

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

           

PepsiCo Yes No No Yes No

Ben & Jerry's No Yes Yes Yes No

Copyright 2007 Prentice Hall Ch 2 -44

Mission Statement Evaluation Matrix

COMPONENTS          

Self- Concern for Concern for

Organization Philosophy Concept Public Image Employees

         

PepsiCo Yes No No No

Ben & Jerry's No Yes Yes Yes

Copyright 2007 Prentice Hall Ch 2 -45

• Fleetwood Enterprises will lead the recreational
vehicle and manufactured housing industries in
providing quality products, with a passion for
customer-driven innovation. We will emphasize
training, embrace diversity and provide growth
opportunities for our associates and our dealers. We
will lead our industries in the application of
appropriate technologies. We will operate at the
highest levels of ethics and compliance with a focus
on exemplary corporate governance. We will deliver
value to our shareholders, positive operating results
and industry-leading earnings
Copyright 2007 Prentice Hall Ch 2 -46
• Dell’s mission is to be the most successful
computer company in the world at delivering
the best customer experience in markets we
serve. In doing so, Dell will meet customer
expectations of highest quality; leading
technology ; competitive pricing; individual
and company accountability; best-in-class
service and support; flexible customization
capability; superior corporate citizenship;
financial stability.
Copyright 2007 Prentice Hall Ch 2 -47
Mission Statement Evaluation Matrix

COMPONENTS          

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

           

Fleetwood
Enterprises’

Dell’s

Copyright 2007 Prentice Hall Ch 2 -48

Mission Statement Evaluation Matrix

COMPONENTS          

Self- Concern for Concern for

Organization Philosophy Concept Public Image Employees

         
Fleetwood
Enterprises’ Yes Yes

Dell’s

Copyright 2007 Prentice Hall Ch 2 -49

Assignment

Write the Mission Statements of Ten

Ethiopian Organizations and evaluate
each organization’s mission statement
based on the nine dimensions.
Similarly evaluate the vision statement of
each of the organization.

Copyright 2007 Prentice Hall Ch 2 -50

Copyright 2007 Prentice Hall Ch 2 -51