chap 2 the business mission
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Copyright 2013 Pearson Education
Chapter Objectives
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Describe the nature and role of vision and missionstatements in strategic management.
Discuss why the process of developing a missionstatement is as important as the resulting document.
Identify the components of mission statements.
Discuss how clear vision and mission statements canbenefit other strategic-management activities.
Evaluate mission statements of different organizations.
Write good vision and mission statements.
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What we want to Become?
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Avision statement should answer the basic question!What do we want to become"
#he vision statement should be short preferably one
sentence and as many managers as possible should haveinput into developing the statement.
Eg. I$% &orporation 'erhad (ision )tatement*
!#o be an internationally competitive %alaysian builderof world class infrastructure and buildings+
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%en,adian i#% sebagai universiti yangunggul yang berterasan esar,anaan danecemerlangan aademi bagu menera,uidinamisme bumiputera dalam semua bidang
yang terdapat di i#% menerusi programprofessional bertaraf dunia supaya terlahirgraduan yang berdaya saing global danberetia.
#o establish i#% as a premier university of
outstanding scholarship and academice/cellence capable of providing leadership to'umiputeras0s dynamic involvement in allprofessional fields of world-class standards inorder to produce globally competitive
graduates of sound ethical standing.
Eg: UiTM Vision
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Statement
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What Is Or Bsiness?
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Mission statement
a declaration of an organization0s !reason for being.+
answers the pivotal question !What is our business"+
essential for effectively establishing ob,ectives and
formulating strategies Eg. I$% &orporation 'erhad mission statement*
! #o deliver the highest standards of performancein all our ventures with the I$% mar ofe/cellence+
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Statement
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reveals what an organizationwants to be and whom it wantsto serve
Also called a creed statement astatement of purpose astatement of philosophy astatement of beliefs and a
statement of business principles
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%empertingatan eilmuan dan epaaranbumiputera di i#% dalam semua bidang menerusipenyampaian program professional penyelidianserta penglibatan ativiti emasyaraatan yangberlandasan epada nilai-nilai murni dan etiaeprofesionalan.
#o enhance the nowledge and e/pertise of
'umiputeras in all fields of study throughprofessional programs research wor andcommunity service based on moral values andprofessional ethics.
Eg: UiTM Mission
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! Comprehensive Strategic"Management Mo#e$
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Vision verss Mission
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Share# visionwould be able to*
&reates a commonality ofinterests
1educe monotony of daily wor
2rovides opportunity andchallenge.
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Vision % Mission Statements :The &rocess
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A widely used approach to develop vision and missionstatement is to*
)elect several articles about these statements and as allmanagers to read these as bacground information.
As managers themselves to prepare a vision and missionstatement for the organization.
%erge these statements into a single document anddistribute the draft statements to all managers
2rocess should create an !emotional bond+ and !sense ofmission+ between the organization and its employees
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3. #o ensure unanimity of purpose within the organization
4. #o provide a basis or standard for allocating organizationalresources
5.#o establish a general tone or organizational climate
6. #o serve as a focal point for individuals to identify with theorganization0s purpose and direction
7. #o facilitate the translation of ob,ectives into a worstructure
8. #o specify organizational purposes
Vision % Mission Statements :
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Bene'its o' (aving a C$earMission an# Vision
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) Characteristics o' a MissionStatement
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A good mission statement allows for the generation andconsideration of a range of feasible 9realistic: alternative
ob,ectives and strategies without overly stifling 9prevent:management creativity.
A mission statement needs to be broad to effectively reconciledifferences among and appeal to an organization0s diverse
staeholders the individuals and groups of persons whohave a special stae or claim on the company.
Arouses positive feelings and emotions about anorganization motivates reader to action. %ust less than
4;; words
*ec$aration o' !ttit#e : + reasons
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A mission statement should*define what the organization is and what the organization aspires to be
be limited enough to e/clude some ventures and broad enough to allow forcreative growth
distinguish a given organization from all others
serve as a framewor for evaluating both current and prospective activities
be stated in terms sufficiently clear to be widely understood throughout theorganization
Characteristics o' a MissionStatement
! Cstomer Orientation * identify thecustomers0 needs and then to provide a productor service to fulfill those needs
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Cont:! Cstomer Orientation
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A good mission statement reflects the anticipations of customers.
#he operating philosophy of organizations should be to identifycustomers0 needs and then provide a product or service to fulfill thoseneeds.
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Characteristics o' a MissionStatement
! *ec$aration o' Socia$ &o$ic,
Social policy embrace managerial philosophy and thining at thehighest levels of an organization.
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Mission Statement:Components
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-. Cstomers=Who are the firm0scustomers"
+. &ro#cts or services=Whatare the firm0s ma,or products or
services"). Mar/ets=>eographically where
does the firm compete"
0. Techno$og,=Is the firmtechnologically current"
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1. Concern 'or srviva$2growth2 an# pro'itabi$it,=Isthe firm committed to growthand financial soundness"
3. &hi$osoph,=What are the basicbeliefs values aspirations andethical priorities of the firm"
4. Se$'"concept=What is thefirm0s distinctive competence orma,or competitive advantage"
Mission Statement:Components
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5. Concern 'or pb$ic image=Is the firm responsive to socialcommunity and environmental
concerns"6. Concern 'or emp$o,ees=
Are employees a valuable assetof the firm"
Mission Statement:Components
Ch t i ti ' Mi i
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Characteristics o' a MissionStatement
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E7amp$e:Mission Statements
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We aspire to mae 2epsi&o the world0s 95: premier consumer productscompany focused on convenient foods and beverages 94:. We see toproduce healthy financial rewards for investors 97: as we provideopportunities for growth and enrichment to our employees 9@: our
business partners and the communities 9: in which we operate. And ineverything we do we strive to act with honesty openness fairness andintegrity 98:.
E7amp$e:Mission Statements
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Dell0s mission is to be the most successful computer company 94: in theworld95: at delivering the best customer e/perience in marets we serve93:. In doing so Dell will meet customer e/pectations of highest qualityBleading technology 96:B competitive pricingB individual and companyaccountability 98:B best-in-class service and support 9?:B fle/ible
customization capability 9?:B superior corporate citizenship 9:Bfinancial stability 97:.
E7amp$e:Mission Statements
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2rocter C >amble will provide branded products and services ofsuperior quality and value 9?: that improve the lives of the world0s 95:consumers. As a result consumers 93: will reward us with industryleadership in sales profit 97: and value creation allowing our people
9@: our shareholders and the communities 9: in which we live andwor to prosper.
E7amp$e:Mission Statements
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At 0real we believe that lasting business success is built upon ethical98: standards which guide growth and on a genuine sense ofresponsibility to our employees 9@: our consumers our environmentand to the communities in which we operate 9:.
E7amp$e:Mission Statements
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