“If a man takes no thought about what is distant, he will find sorrow near at hand.

He who will not worry about what is far off will soon find something worse than

worry”

Where there is no vision, the people perish

Chapter 2The Business Vision & Mission

Conclusion first Every Org has a unique purpose and

reason for beingThis uniqueness should be reflected in

vision & mission statementsThe nature of a business V&M can

represent either a competitive advantage or disadvantage for the firm

First step in SM which provides direction for all planning activities

Essential for formulating, implementing & evaluating strategy

StoryThree people were at work on a construction site.

All were doing the same job, but when was asked what his job was, the answers varied: “ Breaking rocks,” first replied; “Earning a living” second replied; “ Helping to build a cathedral” third replied

Few of us can build cathedrals. But to the extent we can see the cathedral in whatever cause we are following, the job seems more worthwhile

Good strategists & clear mission helps us find those cathedrals in what otherwise could be dismal issues and empty causes

Chapter Objectives1. Describe the nature and role of vision &

mission statements in strategic management

2. Discuss why the process of developing a mission statement is an important as the resulting document

3. Identify the components of mission statements

4. Evaluate mission statements of different organizations

5. Write good vision and mission statements

• Owner believes that new enterprise will result in favorable public image– concept will be communicated to, adopted by, important constituencies

These set of beliefs put into writing, the resulting document mirrors the same basic ideas that underlie the

vision & mission statement

V & M statements found in the front of annual reportsDisplayed though out a firm’s premises 90 % of all Co’s have used a mission statement sometime in the previous five years

What Do We Want to Become?

• A clear vision provides the foundation for developing a comprehensive mission statement

• Vision statement should be established first & foremost

• Should be short, preferable one sentence

• Many managers as possible should have input into developing the statement

V - A = ?A - V = ?V + A = ?

Shaikh Chilli

Gadha

MAGIC

MAGIC: Something that you do which others do not understand

To be the premier management institute of the region that systematically combines

education,training and research in its programmes to

prepare faculty and students for diverse and challenging roles in a complex domestic and

global environment

Vision

To be the premier organization operating locally & internationality that provides the complete range of financial services to all

segments under one roof.

What is Our Business ?Statement of purpose that distinguishes one

organization from other similar enterprisesDeclaration of an Org “reason for being”Answers the question “What is our business”Essential for effectively establishing

objectives & formulating strategiesReveals what an ORG wants to be and whom

it wants to serve

Mission Statement Continue……

• Also called Creed statement- statement of purpose- statement of philosophy, statement of beliefs, statement of business principles-

statement of defining our business

Our mission is to provide quality management education and new knowledge based research that enables IMSciences to be a school with

foundations in excellence at all levels. Our faculty aims at advancing management theory and practice and to broadly analyze knowledge

through learning, classroom applications and service in the public and

private sectors. IMSciences education enables individuals to manage existing businesses, critically evaluate theory, and inculcate values of energetic entrepreneurship in support of public policy that encourages

economic development balanced with social and environmental responsibility. Through its focus on teaching and learning,

research and outreach, the Institute creates, conveys and applies knowledge to expand personal growth and opportunity, to advance

social and community development in order to foster economic

competitiveness and improve the quality of life.

• Through its collaborative network of students, faculty, and the staff, the Institute’s comprehensive mission is to establish a self-conscious, learned, and self-regulating society in which individuals recognize their roles as accountable to the public good.

• More specifically, we aim to provide advanced knowledge of the art, science, and technology of business through teaching, research, and training in order to produce leading executives, managers, software engineers as well as computer scientists that can venture to shape the practice of business in every industry and become a catalyst for social and economic development.

• To achieve this, we:– Offer diverse programs based on curriculum that is in line with the varying

management trends.– Provide exceptional faculty that aims to advance management theory and practice

by analyzing knowledge through learning, research,     classroom application, and service in public and private sectors.

– Attract students with outstanding intellectual ability that are dedicated to personal as well as social, and economic development of Pakistan.

– Our all-encompassing mission is to attest to the world the fact that a relatively underprivileged region has the potential to reach beyond social, political, and security barriers to educate and produce outstanding leaders for tomorrow

Mission

To develop & deliver the most innovative products, manage customer experience, deliver quality services that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the

bank.

Vision & Mission

Profit & vision are necessary to effectively motivate a workforce

Profit, not mission or vision, is the primary corporate motivatorBut profit alone is not enough to motivate peopleProfit perceived negatively by some employees in companies Shared vision creates a commonality of interests that can lift workers out of the monotony of daily work & put them into a new world of opportunity & challenge

The Process of Developing a Mission Statement

Select several articles about MS- ask managers to read these as background information

Ask managers to prepare a mission statement for the Organization

A facilitator, or committee of top mangers- merge these statements into a single document & distribute the draft to all mangers

Request for modifications, additions, deletion is needed next along with meeting to revise to revise the document

Process of developing a mission statement represents a great opportunity for strategists to obtain needed support from all managers in the firm

Importance of Vision & Mission Statements

MissionResource Allocation

Unanimity of Purpose

Organizational Climate

Focal point for work structure

Benefits from a strong mission

A resolution for Divergent Views “What is our business” can create

controversy ? Differences between strategists

University: Divergent views regarding the relative importance of teaching, research and consultancy…..

Drucker “the most imp time to ask seriously, “what do we want to become?” & “what is our business?” is when a company has been successful:

SUCCESS ALWAYS OBSOLETES THE VERY

BEHAVIIOR THAT ACHIEVED IT

Assignment / Presentation

• Characteristics of a Mission Statement– A declaration of Attitude– A customer orientation– A declaration of Social Policy

Characteristics of a Mission Statement

• A declaration of Attitude– Clean Air – Jobs– Taxes– Investment opportunities– Career opportunities– EEO– Employee benefits– Salaries & wages– Community services

Environmentally Proactive

Stakeholders--- profitability

General Public— Social

responsibility

A customer Orientation

• Define what the Org is what Org aspires to do– Be limited enough

• Nor too board• Not too limited

• Distinguish Org from one another

Declaration Of Social Policy

• Impact of Society on business & Vice Versa

• Social policy integrated into all Strategic Management activities including Mission Statement

• Term embraces managerial philosophy & thinking at the Higher levels on Organization Global Perspective :

Social policy on Retirement :Japan Vs World

Mission Statement Components

• Mission statement can do vary in length, format & specificity

• Most visible & public part of the strategic- management

• Should not be too lengthy(less than 200 words)

• Customers

• Product/Service

• Markets

• Technology

• Concern for survival, growth & profitability

• Philosophy

• Self Concept

Who are the firm’s customers

What are the basic belief’s, values, aspiration & ethical priorities of the firm?

What are the firm’s major products or services?

Is the firm’s Technology Current

Geographically, where does the firm compete?

Is the firm committed to growth & financial soundness ?

What are the firm’s distinctive competence or major competitive advantage ?

• Concern for public image

• Concern for employees

Is the firm responsive to social , community & environmental concerns?

Are employees a valuable asset of the firm?

Mission Elements

CustomersMarkets

Employees

PublicImage

Self-Concept Philosophy

SurvivalGrowthProfit

ProductsServices

Technology

Writing & Evaluating Mission Statements

• Dell computer Mission Statement was rated to be the best

• Pepsi Co Mission statement was evaluated as the worst

Dell Computer

To be the most successful computer company in the world at delivering the best customer experience in markets as we serve. In doing so, Dell will meet customer expectations of

highest quality; leading technology; competitive pricing; individual & company accountability; best-in-the-class service & support; flexible customization capability; superior corporate citizenship; financial

stability.

Mission Statement Evaluation Matrix

COMPONENTS          

Organization CustomersProducts Services Markets

Concern for Survival, Growth,

Profitability Technology

           

PepsiCo Yes No No Yes No

Dell Yes Yes Yes Yes Yes

           

Mission Statement Evaluation Matrix

COMPONENTS          

Organization PhilosophySelf-

ConceptConcern for Public Image

Concern for Employees

         

PepsiCo Yes No No No

Dell Computer No Yes Yes No