Chapter 2: The Business Vision & Mission Strategic Management: Concepts & Cases © 2001 Prentice Hall

Prentice Hall, 2001© 2001 Prentice Hall Chapter Outline What Is Vision Statement? What Is Mission Statement? The Importance of Mission Statement Components Of A Mission Statement Prentice Hall, 2001© 2001 Prentice Hall

Vision & Mission While a company must continually adapt to its competitive environment, there are certain core values that remain relatively steady and provide guidance in the process of strategic decision-making. These unchanging ideals form the business vision and are expressed in the company’s mission. © 2001 Prentice Hall

Vision Statement Vision statement answers the question: “What do we want to become?” © 2001 Prentice Hall

Vision Statements Vision statement developed first Short – preferably one sentence Broad management involvement © 2001 Prentice Hall

Comprehensive Mission Statement Vision Clear Business Vision Comprehensive Mission Statement Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Example VISION STATEMENT OF UPM “The vision of Universiti Putra Malaysia (UPM) is to become a world class university, an internationally reputable community of intellectuals who will make the nation proud for their contributions to scholarly writing and discoveries, and continue to give new meaning to the progress, growth and development of the nation and the world.” © 2001 Prentice Hall

Vision Statement Examples Our vision is to be the world’s best quick service restaurant. (McDonald’s)

Vision & Mission (Cont’d) Mission statement answers the question: “What is our business?” Reveals: what the organization wants to be whom we want to serve © 2001 Prentice Hall

Mission Statements Mission Statements Essential for effectively establishing objectives and formulating strategies. It sets the foundation for priorities, strategies, plans and work assignments. © 2001 Prentice Hall

Examples Mission of UPM: "The University's mission is to be a leading Centre of Learning and Research, contributing not only towards human advancement and discovery of knowledge but also to the creation of wealth and nation building.” © 2001 Prentice Hall

Vision & Mission Many companies develop both Shared vision can motivate employees Develops a commonality of interests Helps focus on opportunity & challenge © 2001 Prentice Hall

Organizational Climate Focal point for work structure Importance of Mission Benefits from a strong mission Unanimity of Purpose Mission Resource Allocation Organizational Climate Focal point for work structure © 2001 Prentice Hall

Developing 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 © 2001 Prentice Hall

9 Components Of Mission Statement Products Services Markets Customers Technology 9 Components Of Mission Statement Employees Survival Growth Profit Public Image Philosophy Self-Concept © 2001 Prentice Hall

Components of Mission (Cont’d) Components of mission and corresponding questions to be answered: 1. Customers: “Who are the firm’s customers?” 2. Products or services: “What are the firm's major products or services?” © 2001 Prentice Hall

Components of Mission (Cont’d) 3. Markets: “Geographically, where does the firm compete?” 4. Technology: “Is the firm technologically current?” © 2001 Prentice Hall

Components of Mission (Cont’d) 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?” © 2001 Prentice Hall

Components of Mission (Cont’d) 7. Self-concept: “What is the firm’s distinctive competence or major competitive advantage?” 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?” © 2001 Prentice Hall