Copyright 2007 Prentice Hall Ch 2 -1 Chapter 2 The Business Vision & Mission Strategic Management: Concepts & Cases 11 th Edition Fred David
Copyright 2007 Prentice Hall Ch 2 -2 Shared Vision -- Creates commonality of interests Reduce daily monotony Provides opportunity & challenge Vision & Mission
Copyright 2007 Prentice Hall Ch 2 -3 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! Vision Statement Examples -- Atlanta Web Printers, Inc.
Copyright 2007 Prentice Hall Ch 2 -4 “What is our business?” Mission Statement
Copyright 2007 Prentice Hall Ch 2 -5 Mission Statements Enduring statement of purpose Distinguishes one firm from another Declares the firm’s reason for being
Copyright 2007 Prentice Hall Ch 2 -6 Vision & Mission Profit & vision are necessary to effectively motivate a workforce
Copyright 2007 Prentice Hall Ch 2 -7 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. Mission Statement Examples -- The Bellevue Hospital
Copyright 2007 Prentice Hall Ch 2 -8 Importance of Mission Mission Resource Allocation Unanimity of Purpose Organizational Climate Focal point for work structure Benefits from a strong mission
Copyright 2007 Prentice Hall Ch 2 -9 Define what the organization is Define what it aspires to be Limited to exclude some ventures Mission & Customer Orientation – Vern McGinnis Broad enough to allow for growth Distinguishes firm from all others Stated clearly – understood by all
Copyright 2007 Prentice Hall Ch Social Policy & Mission Social policy should be integrated in all strategic-management activities Mission should convey the social responsibility of the firm
Copyright 2007 Prentice Hall Ch x average return on shareholder’s equity Positive relationship to company performance 30% higher return on certain financial measures Vision & Mission Research results are mixed, however, firms with formal mission statements --
Copyright 2007 Prentice Hall Ch Mission Elements Customers Markets Employees Public Image Self-Concept Philosophy Survival Growth Profit Products Services Technology
Copyright 2007 Prentice Hall Ch Mission Scoring Mission Statement Scoring Matrix 1-1.xls
Copyright 2007 Prentice Hall Ch 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 Mission Statement Evaluation Matrix COMPONENTS OrganizationCustomers Products ServicesMarkets Concern for Survival, Growth, ProfitabilityTechnology PepsiCoYesNo YesNo Ben & Jerry'sNoYes No
Copyright 2007 Prentice Hall Ch Mission Statement Evaluation Matrix COMPONENTS OrganizationPhilosophy Self- Concept Concern for Public Image Concern for Employees PepsiCoYesNo Ben & Jerry'sNoYes
Copyright 2007 Prentice Hall Ch Matson Mission and Vision Matson's mission is to provide our customers with an efficient, reliable service of superior quality and value. Matson’s vision is to sustain and expand Matson’s market leadership and profitability in ocean transportation and logistics by: building on historic island strengths in the Pacific, leveraging the brand into compatible new territories and services, enabling and rewarding continuous improvement, and doing the right thing by our customers, employees and the communities that we serve.
Copyright 2007 Prentice Hall Ch Pick a mission! Crowley Marine