© 2001 Prentice Hall Ch. 2-1 Chapter 2: The Business Vision & Mission Strategic Management: Concepts & Cases

Prentice Hall, 2001© 2001 Prentice Hall Ch. 2-2 Chapter Outline What Is Vision Statement? What Is Mission Statement? The Importance of Mission Statement Components Of A Mission Statement

Ch 2 -3

© 2001 Prentice Hall Ch. 2-4 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 Ch. 2-5 Vision Statement Vision statement answers the question: “What do we want to become?”

© 2001 Prentice Hall Ch. 2-6 Vision Statements Vision statement developed first Short – preferably one sentence Broad management involvement

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch 2 -7 Comprehensive Mission Statement Vision Clear Business Vision

© 2001 Prentice Hall Ch. 2-8 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.”

Ch 2 -9 Our vision is to be the world’s best quick service restaurant. (McDonald’s) Vision Statement Examples

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

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

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

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

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

© 2001 Prentice Hall Ch 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 Ch 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?”