1. Chapter 2: The Business Vision & Mission
Strategic Management: Concepts & Cases
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2. 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
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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.
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5. Vision Statement Vision statement answers the question:
“What do we want to become?”
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6. Vision Statements Vision statement developed first
Short – preferably one sentence
Broad management involvement
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7. Comprehensive Mission Statement
Vision
Clear Business Vision
Comprehensive Mission Statement
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Publishing as Prentice Hall

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

10. 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
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11. Mission Statements Mission Statements
Essential for effectively establishing objectives and formulating strategies.
It sets the foundation for priorities, strategies, plans and work assignments.
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12. 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.”
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13. Vision & Mission Many companies develop both
Shared vision can motivate employees
Develops a commonality of interests
Helps focus on opportunity & challenge
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14. 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
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15. 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
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16. 9 Components Of Mission Statement
Products Services
Markets
Customers
Technology
9 Components
Of Mission
Statement
Employees
Survival
Growth
Profit
Public
Image
Philosophy
Self-Concept
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17. 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?”
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18. Components of Mission (Cont’d)
3. Markets:
“Geographically, where does the firm compete?”
4. Technology:
“Is the firm technologically current?”
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19. 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?”
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20. 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?”
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