1. Chapter 2 The Business Mission
Strategic Management:
Concepts and Cases. 9th edition
Fred R. David
PowerPoint Slides by
Anthony F. Chelte
Western New England College
Fred R. David
Prentice Hall

2. Chapter Outline What Do We Want to Become? What Is Our Business?
Importance of Vision and Mission Statements
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3. Chapter Outline Characteristics of a Mission Statement
Components of a Mission Statement
Writing and Evaluating Mission Statements
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4. Vision & Mission Vision is the art of seeing things invisible
-- Jonathan Swift
The very essence of leadership is that you have to have vision. You can’t blow an uncertain trumpet.
-- Theodore Hesburgh
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5. Vision
Management and executive agreement on the basic vision for which the firm strives to achieve in the long run is critically important.
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6. Vision Vision statement answers the question:
“What do we want to become?”
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7. Vision
Clear vision
Provides foundation for comprehensive mission statement
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8. Vision & Mission Vision statement developed first
Short – preferably one sentence
Broad management involvement
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9. Vision Statements
The Vision of the National Pawnbrokers Association is to have complete and vibrant membership that enjoys a positive public and political image and is the focal organization of all pawn associations.
--National Pawnbrokers Association
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10. Vision Statements
The Bellevue Hospital is the LEADER in providing resources necessary to realize the community’s highest level of HEALTH throughout life.
--The Bellevue Hospital
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11. Vision Statements
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!
--Atlanta Web Printers, Inc.
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12. Vision Statements
It is the vision of the California Energy Commission for Californians to have energy choices that are affordable, reliable, diverse, safe, and environmentally acceptable.
--California Energy Commission
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13. Mission Statements Recent Data indicate that:
90% of all companies have used a mission statement sometime in the previous five years.
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14. Mission statement answers the question:
Mission Statements
Mission statement answers the question:
“What is our business?”
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15. Mission Statements Mission Statement: Enduring statement of purpose
Distinguishes one organization from another in similar enterprises
Declaration of an organization’s “reason for being”
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16. Mission Statements Mission Statements also referred to as:
Creed statement
Statement of purpose
Statement of philosophy
Statement of business principles
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17. Mission Statements Mission Statements
Reveal what an organization wants to be and whom it wants to serve
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18. Mission Statements Mission Statements
Essential for effectively establishing objectives and formulating strategies
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19. Vision and Mission
Many organizations develop both vision and mission statements
Profit and vision are necessary to effectively motivate a workforce
Shared vision creates a commonality of interests
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20. 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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21. Mission Statements Mission Statement
“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.”
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22. Mission Statements
The Mission of USGS is to serve the Nation by providing reliable scientific information to
Describe and understand the Earth;
Minimize loss of life and property from natural disasters;
Manage water, biological, energy, and mineral resources; and enhance and protect our quality of life.
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23. Mission Statements
“It is the California Energy Commission’s mission to assess, advocate, and act through improve energy systems that promote a strong economy and a healthy environment.”
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24. Importance of Mission Unanimity of purpose within the organization
Basis for allocating resources
Establish organizational climate
Focal point for direction
Translate objectives into work structure
Cost, time and performance parameters assessed and controlled
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25. Mission Characteristics
Effective mission statements:
Broad in scope
Generate range of feasible strategic alternatives
Not excessively specific
Reconcile interests among diverse stakeholders
Finely balanced between specificity & generality
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26. Mission Characteristics
Effective mission statements:
Arouse positive feelings and emotions
Motivate readers to action
Generate the impression that firm is successful, has direction, and is worthy of time, support, and investment
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27. Mission Characteristics
Effective mission statements:
Reflect judgments re: future growth
Provide criteria for selecting strategies
Basis for generating & screening strategic options
Are dynamic in orientation
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28. Customer Orientation According to Vern McGinnis, mission should:
Define what the organization is
Define what the organization aspires to be
Limited to exclude some ventures
Broad enough to allow for creative growth
Distinguish the firm from all others
Serve as framework to evaluate current activities
Stated clearly so that it is understood by all
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29. Customer Orientation
A good mission statement reflects the anticipations of customers.
Identify customer needs
Provide product/service to satisfy needs
AT&T’s mission focuses on communications, not telephones
Exxon’s mission focuses on energy, not on oil and gas
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30. Social Policy & Mission
Managerial philosophy and thinking at the highest levels in the organization reflect social policy.
Affects development of vision & mission
Responsibilities to consumers, environmentalists, minorities, communities, & other groups
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31. Social Policy & Mission
Social policy should be integrated in all strategic-management activities.
Mission statement is an effective instrument for conveying the social responsibility of the firm.
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32. Components of Mission Mission statements vary in… Length Content
Format
Specificity
Must include the 9 elements, as the mission statement is the most public and visible part of the strategic-management process.
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33. Mission Components Customers Products or services Markets Technology
Survival, growth, and profitability
Philosophy
Self-concept
Concern for public image
Concern for employees
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34. Components of Mission
Components of mission and corresponding questions to be answered:
Customers:
“Who are the firm’s customers?”
Products or services:
“What are the firm's major products or services?”
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35. Components of Mission Markets: Technology:
“Geographically, where does the firm compete?”
Technology:
“Is the firm technologically current?”
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36. Components of Mission Concern for survival, growth, and profitability:
“Is the firm committed to growth and financial soundness?”
Philosophy:
“What are the basic beliefs, values, aspirations, and ethical priorities of the firm?”
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37. Components of Mission Self-concept: Concern for public image:
“What is the firm’s distinctive competence or major competitive advantage?”
Concern for public image:
“Is the firm responsive to social, community, and environmental concerns?”
Concern for employees:
“Are employees a valuable asset of the firm?”
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38. Importance of Vision & Mission
Although research results are mixed, firms with formal mission statements…
2X average return on shareholder’s equity
Positive relationship to organizational performance
30% higher return on certain financial measures
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39. PepsiCo Mission Statement
PepsiCo’s mission is to increase the value of our shareholders’ investment. We do this through sales growth, cost controls, and wise investment resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.
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40. Ben & Jerry’s Mission Statement
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.
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41. Concern for Survival, Growth, Profitability
Evaluation Matrix of Mission Statements
COMPONENTS
Organization
Customers
Products Services
Markets
Concern for Survival, Growth, Profitability
Technology
PepsiCo
Yes No
Ben & Jerry's
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42. Evaluation Matrix of Mission Statements
COMPONENTS
Organization
Philosophy
Self-Concept
Concern for Public Image
Concern for Employees
PepsiCo
Yes No
Ben & Jerry's
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43. Key Terms & Concepts Concern for Employees Concern for Public Image
Concern for Survival, Growth, and Profitability
Creed Statement
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44. Key Terms & Concepts Customers Markets Mission Statement Components
Philosophy
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45. Key Terms & Concepts Self-Concept Social Policy Stakeholders
Vision Statement
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