The Business Vision

and Mission

Chapter Two
 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.

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

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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.

2-4
Vision Statement Examples

2-5
 What Is Our Business?
• Mission statement
– a declaration of an organization’s “reason for
being.”
– answers the pivotal question “What is our
business?”
– essential for effectively establishing objectives
and formulating strategies

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 Mission Statement
• 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

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A Comprehensive Strategic-Management
Model

2-8
 Vision versus Mission
• Shared vision creates a commonality of
interests that can lift workers out of the
monotony of daily work and put them into
a new world of opportunity and challenge.

2-9
 The Process of Developing Vision and
Mission Statements
• 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.

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 The Process of Developing Vision and
Mission Statements
• Merge these statements into a single
document and distribute the draft
statements to all managers
• Process should create an “emotional
bond” and “sense of mission” between the
organization and its employees

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 Importance of Vision and
Mission Statements
1. To ensure unanimity of purpose within the
organization

2. To provide a basis, or standard, for

allocating organizational resources

3. To establish a general tone or

organizational
climate
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.
 Importance of Vision and
Mission Statements
4. To serve as a focal point for individuals to
identify with the organization’s purpose
and
direction

5. To facilitate the translation of objectives

into
a work structure

6. To specify organizational purposes 2-13

Benefits of Having a Clear Mission and
Vision

2-14
.
Characteristics of a Mission Statement

• First, a good mission statement allows for

the generation and consideration of a
range of feasible alternative objectives and
strategies without unduly stifling
management creativity.

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Characteristics of a Mission Statement

• Second, a mission statement needs to be

broad to reconcile differences effectively
among, and appeal to, an organization’s
diverse stakeholders

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Characteristics of a Mission Statement

• Stakeholders
– include employees, managers, stockholders,
boards of directors, customers, suppliers,
distributors, creditors, governments (local,
state, federal, and foreign), unions,
competitors, environmental groups, and the
general public.

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Characteristics of a
Mission Statement

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.
 A Customer Orientation
A mission statement should:
•define what the organization is and what
the organization aspires to be
•be limited enough to exclude some
ventures and broad enough to allow for
creative growth
•distinguish a given organization from all
others

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 A Customer Orientation
A mission statement should also:
•serve as a framework for evaluating both
current and prospective activities
•be stated in terms sufficiently clear to be
widely understood throughout the
organization

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.
 A Customer Orientation
• A good mission statement reflects the
anticipations of customers.
• The operating philosophy of organizations
should be to identify customers’ needs and
then provide a product or service to fulfill
those needs.

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 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? 2-22
 Mission Statement 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 2-23
.
 Mission Statement 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?

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C
 Example Mission Statements
• Fleetwood Enterprises will lead the recreational vehicle
and manufactured housing industries (2, 7) in providing
quality products, with a passion for customer-driven
innovation (1). We will emphasize training, embrace
diversity and provide growth opportunities for our
associates and our dealers (9). We will lead our
industries in the application of appropriate technologies
(4). We will operate at the highest levels of ethics and
compliance with a focus on exemplary corporate
governance (6). We will deliver value to our
shareholders, positive operating results and industry-
leading earnings (5).

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 Example Mission Statements
• We aspire to make PepsiCo the world’s (3)
premier consumer products company, focused
on convenient foods and beverages (2). We
seek to produce healthy financial rewards for
investors (5) as we provide opportunities for
growth and enrichment to our employees (9), our
business partners and the communities (8) in
which we operate. And in everything we do, we
strive to act with honesty, openness, fairness
and integrity (6).

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 Example Mission Statement
• We are loyal to Royal Caribbean and Celebrity and strive
for continuous improvement in everything we
do. We always provide service with a friendly greeting
and a smile (7). We anticipate the needs of our
customers and make all efforts to exceed our customers’
expectations (1). We take ownership of any
problem that is brought to our attention. We engage in
conduct that enhances our corporate reputation
and employee morale (9). We are committed to act in the
highest ethical manner and respect the rights
and dignity of others. (6).

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x.
 Example Mission Statements
• Dell’s mission is to be the most successful
computer company (2) in the world (3) at
delivering the best customer experience in
markets we serve (1). In doing so, Dell will meet
customer expectations of highest quality; leading
technology (4); competitive pricing; individual and
company accountability (6); best-in-class service
and support (7); flexible customization capability
(7); superior corporate citizenship (8); financial
stability (5).

x 2-28
 Example Mission Statements
• Procter & Gamble will provide branded products
and services of superior quality and value (7)
that improve the lives of the world’s (3)
consumers. As a result, consumers (1) will
reward us with industry leadership in sales, profit
(5), and value creation, allowing our people (9),
our shareholders, and the communities (8) in
which we live and work to prosper.

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 Example Mission Statements
• At L’Oreal, we believe that lasting business
success is built upon ethical (6) standards
which guide growth and on a genuine sense
of responsibility to our employees (9), our
consumers, our environment and to the
communities in which we operate (8).

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 2-31
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