1. Year’s Agenda Mission/Vision Statement Chapter 9 Test
Product and Services (Part A)
9.1 Marketing Mix
Pricing Strategy - Business Three
9.2 Promotion
Ad Plan
Advertising Promotion
Sample Promotional
9.3 Marketing Goals
Marketing test Review Chap 9
Chapter 9 Test
Pro Forma Cash Flow
Cash Flow Statement
7.1 Financial Statements
Final Cash Flow
7.2 Edmodo
Income Statement
Chapter 7 Test
FINAL EXAM

2. Strategic Business Planning for Commercial Producers
Strategic Direction
How Are Vision & Mission Statements Used to Set the Strategic Direction?
In this presentation we will discuss what a vision statement is and how it can be an important part of your business. No matter what it is called -- a vision or a mission statement – it has certain qualities, which we will discuss.
© Purdue University, Center for Food and Agricultural Business, 2002

3. Vision/Mission Statements
Strategic Business Planning for Commercial Producers
Strategic Direction
Vision/Mission Statements
Statements that explain who we are
Type of organization
Products/services
Needs we fill
Statements that explain our direction, our purpose, our reason for being
What difference do we make?
Statements that explain what makes us unique
Values
People
Combination of products and services
The vision and mission statements should be designed to answer these basic questions. The Vision statement is very broad and forward looking and should also be inspiring. It should mean something to people besides just the person(s) who write it. The vision statement can serve as key piece of communicating to stakeholders, employees, and customers what the company is all about and how it can affect each of them positively.
© Purdue University, Center for Food and Agricultural Business, 2002

4. Business Vision Statement
Strategic Business Planning for Commercial Producers
Strategic Direction
Business Vision Statement
A statement that clearly defines the firm’s “reason” for being in business
Should significantly stretch the resources and capabilities of the business
Should inspire people in the organization to achieve things they never thought possible
Should unite people in the organization toward the pursuit of one common goal
A vision of success is a statement of what organizational success will look like. The vision should be attainable by the employees and management team, yet a challenge to accomplish. The vision statement helps see how everyone’s role benefits the farm. It provides direction.
Significantly stretch means the vision statement is bold enough to make us think “I’m not sure we have the resources and capabilities to do this.”
Inspire suggests that the vision has to be powerful enough that when owners and employees read it they say “I hope we can do this and I want
Unite suggests that the vision statement is focused enough to have everyone in the organization say “I know what we are trying to do and I will do my part.”
This is a difficult process. Writing a good one will take many months and take many revisions.
Why have a vision and mission statement for your business? 1.The statements are communication tools both inside and outside the business. They show commitment and unity of the management team. They help to communicate ideas and principles to people outside the management team such as employees, lenders, landowners, suppliers and buyers. For them to be effective you have to live them. 2. It’s development brings out each person’s ideas so that they can be discussed and merged into a common direction that all members of the management team can work towards. 3. Can play an important role in goal and strategy development by providing a vehicle to generate and screen options.
© Purdue University, Center for Food and Agricultural Business, 2002

5. Business Vision Statement
Strategic Business Planning for Commercial Producers
Strategic Direction
Business Vision Statement
A guiding philosophy
Consistent with organizational value
Influenced by the strengths and weaknesses of the business
The vision is the overarching goal that you wish to attain. It begins with the things that are already in the business – the values and abilities and resources. Organizational values are the things that are the most important. They are things like the following:
Profits vs. leisure
Building the business vs. building the community
Being independent vs. cooperating with others.
Operating a large acreage vs. good relationships with neighbors
Provide opportunities for the next generation vs. ending the business when you retire
What strengths does the business have relative to its competitors. Is production efficiency above average? Is there special equipment that you have that will be difficult for others to obtain? Are there special relationships with suppliers, product purchasers, or other farmers that can not be easily developed by others?
The vision usually does not change abruptly but will evolve with changes in the business environments and the aging or the composition of management. What philosophy and values means can be is this: if corn were worth $0.05/bu tomorrow this farm business would still be about . . .” The answer is likely to be related to the business philosophy and values.
© Purdue University, Center for Food and Agricultural Business, 2002

6. Components of a Vision Statement
Strategic Business Planning for Commercial Producers
Strategic Direction
Components of a Vision Statement
Core ideology
Core Values - timeless guiding principles
Core Purpose - reason for being
Envisioned future
Big Hairy Audacious Goals (BHAG) clearly articulated goals
Vivid description - a graphic description of what success and the future will be like
Recognition of service to stakeholders
Owners/creditors
Employees
Customers
Won’t change over time. Something you’re after – 20 years, 50 years out, but attainable.
Ask yourself this: What would you still be about if the things you do for money were suddenly worthless? All that would remain would be your values. You take these with you from business to business.
For instance, a farmer in NW Indiana will not bid against young farmers for land. Part of his vision is his role as a respected member of his community. He has built a reputation in the community as being a good neighbor and helping young farmers. His reputation has come back to reward him. For example, when his pig barns burned down, the community supported him helping rebuild them within two weeks.
The BHAG –Describing it to yourself and your staff makes it important and tangible. A good description will help motivate the organization in all its actions.
Recognition of stakeholders says that the vision should answer “What do you do for them that is unique and valuable?”
© Purdue University, Center for Food and Agricultural Business, 2002

7. Strategic Business Planning for Commercial Producers
Strategic Direction
Mission Statements
The mission statement of an organization is normally short, to the point, and contains the following elements:
Provides a concise statement of why the organization exists, and what it is to achieve;
States the purpose and identity of the organization;
Defines the institution's values and philosophy; and
Describes how the organization will serve those affected by its work.
Mission statements say why the business is unique. A mission statement is not developed exclusively by the general manager. It is a collaborative effort and is developed by the management team and line staff. In short, it is developed by those who will live by it, enforce it, and ensure its success. How the mission statement is developed is as important as the statement itself. The process seeks inclusion, values all input, and works by consensus building. The mission belongs to all employees, not just the general manager.
It should evoke some personal response. It needs to be worked on until it gets to be so clear that reminding yourself of it will keep you, on a really bad day, from walking out and quitting.
Research has shown that people who have an understanding or reason for what they are doing, do much better in times of stress. This sense of coherence or mission helps people focus and endure challenges that stand in the way of their realizing their vision. With a clear mission, people know what is important to them and can focus their activity. They can be strategic and pick priorities rather than be reactive.
© Purdue University, Center for Food and Agricultural Business, 2002

8. Strategic Business Planning for Commercial Producers
Strategic Direction
Vision vs. Mission
The vision is more broad and future oriented – the goal on the horizon
The mission is more focused – how you will get to the horizon
The vision you have may not be achieved, but it is the overarching thing you aspire to.
The mission adds specificity to a vision.
There are no numbers associated with a vision or mission – these are long term activities. The details will be set forth in goals and objectives (discussed in a later presentation).
© Purdue University, Center for Food and Agricultural Business, 2002

9. Guess who’s Vision Statements
Strategic Business Planning for Commercial Producers
Strategic Direction
Guess who’s Vision Statements
Product: 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. Economic: 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. Social: 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.
A very complete vision statement. It is unique in its way of identifying three specific misisons. It recognizes what they do. It addresses their shareholders and employees. It recognizes a commitment to the company’s place in society.
Ben and Jerry’s was recently bought by Unilever. The winning bidder did not have the highest bid. In fact it was fourth lowest. The company went to Unilever because its vision was the closest to Ben and Jerry’s.
© Purdue University, Center for Food and Agricultural Business, 2002

10. Guess who’s Mission Statement
XXXXX aim is to provide Professional quality Salon products to our Customers, also offering quality advise, easy to use instructions and beautiful XXXXX to all our customers, while providing competitive prices and excellent customer service. We will strive to consistently exceed our expectations as well as our clients
This is a pure mission statement as it lacks any element of a vision statement. Needs to identify all stakeholders: customers, employees, and creditors. The statement in the picture is a nice focusing statement for the company’s employees and customers.

11. Supercuts Vision
“Our salon will change the way you think about a haircut. Full service comfort, friendly staff, a relaxing atmosphere, and the best prices in town give you an experience that will leave you glowing both inside and out.”
Once again, it's clear from this vision statement what type of business is behind it. It's also a good, clear list of goals, without being too specific.It paints an overall picture of a pleasant, successful business that the company hopes to become, and since the vision statement isn't just a vision of your future – it's also a vision you're presenting to your customers about who you are – it's important that it do just that.

12. Examples of Vision Statements
Strategic Business Planning for Commercial Producers
Strategic Direction
Examples of Vision Statements
"We believe that we are on the face of the earth to make great products and that's not changing. We are constantly focusing on innovating. We believe in the simple not the complex. We believe that we need to own and control the primary technologies behind the products that we make, and participate only in markets where we can make a significant contribution. We believe in saying no to thousands of projects, so that we can really focus on the few that are truly important and meaningful to us. We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot. And frankly, we don't settle for anything less than excellence in every group in the company, and we have the self-honesty to admit when we're wrong and the courage to change. And I think regardless of who is in what job those values are so embedded in this company that XXXXX will do extremely well."
This vision statement does a good job of differentiating the farm operation from other. It is fairly focused on land management. It has a BHAG “very best farmers in the our region” The accomplishment of the goal is described by “appearance is everything” there description of a completed goal is land that is virtually weed free and well kept. A very production oriented vision statement but nonetheless fairly well written.
Who are their customers? The landowner is. If they corn and soybeans are suddenly worthless tomorrow, this farm will find a way to take care of the landowner.
© Purdue University, Center for Food and Agricultural Business, 2002 5

13. Strategic Business Planning for Commercial Producers
Strategic Direction
MBC Farms
Vision MBC Farms will be an agribusiness focused on the profitable, progressive, and sustainable production of premium quality identity-preserved grains, oilseeds, and dairy products. MBC Farms will be a respected, responsible neighbor and an asset to our community. We prefer a rural lifestyle and are willing to embrace change as a means to that end. MBC Farms provides the opportunity for our children and employees to participate in production agriculture either as owners and/or managers of the business. Mission MBC Farms is a producer of grains, oilseeds, specialty crops, and milk. Our mission is to be recognized by our business associates and competitors as one of the top producers in our area and to make sure that productivity translates into prosperity and growth for everyone involved with our farm.
MBC Farms has a vision statement and a separate mission statement. The two statements are similar, but there is clearly a different tone in the two statements particularly as it relates to the future (vision) and the present (mission.
© Purdue University, Center for Food and Agricultural Business, 2002

14. Strategic Business Planning for Commercial Producers
Strategic Direction
Exercise
Find the vision and mission statements of 3 companies that are similar to yours
Spend some time thinking about the vision and mission of your company.
Write a vision and mission for your business; you can revise and work on it more later.
Remember developing vision and mission statements are not immediate occurrences; they take time, reflection and practice.
Write things down!
You won’t understand the value of this until your done. Vision statements are difficult to work with at first. Unless you start writing it, it will not really happen.
© Purdue University, Center for Food and Agricultural Business, 2002