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Ch. 2-1

Chapter 2:The Business Vision

& Mission

Strategic Management:

Concepts & Cases

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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

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Ch. 2-4

Vision & MissionVision & 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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Ch. 2-5

Vision StatementVision Statement

Vision statement answers the question:

“What do we want to become?”

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Ch. 2-6

Vision Statements

• Vision statement developed first• Short – preferably one sentence• Broad management involvement

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Ch 2 -7

ComprehensiveMission Statement

Vision

Clear Business Vision

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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

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Ch. 2-10

Vision & Mission (Cont’d)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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Ch. 2-11

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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Ch. 2-12

ExamplesExamples

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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Ch. 2-13

Vision & MissionVision & Mission

• Many companies develop both• Shared vision can motivate

employees• Develops a commonality of

interests• Helps focus on opportunity &

challenge

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Ch. 2-14

Importance of Mission

MissionResource Allocation

Unanimity of Purpose

Organizational Climate

Focal point for work structure

Benefits from a strong mission

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Ch. 2-15

Developing Vision & Developing Vision & MissionMission

• 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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Ch. 2-16

9 ComponentsOf Mission Statement

CustomersMarkets

Employees

PublicImage

Self-Concept Philosophy

SurvivalGrowthProfit

ProductsServices

Technology

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Ch. 2-17

Components of Mission Components of Mission (Cont’d)(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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Ch. 2-18

Components of Mission Components of Mission (Cont’d)(Cont’d)

3. Markets:“Geographically, where does the

firm compete?”

4. Technology:“Is the firm technologically

current?”

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Ch. 2-19

Components of Mission Components of Mission (Cont’d)(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. 2-20

Components of Mission Components of Mission (Cont’d)(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?”