Chapter 2 The Business Vision & Mission

Strategic Management: Concepts & Cases 13th Edition Fred David

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Vision

The last thing IBM needs right now is a vision. (July 1993)

What IBM needs most right now is a vision. (March 1996)

Louis V. Gerstner, Jr., CEO, IBM Corporation
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Vision

Agreement on the basic vision for which the firm strives to achieve in the long term is especially important.

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Vision

What do we want to become?

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Vision Statement Examples

Tyson Foods vision is to be the worlds first choice for protein solutions while maximizing shareholder value.

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Vision Statement Examples

General Motors vision is to be the world leader in transportation products and related services.

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Vision Statement Examples

PepsiCos responsibility is to continually improve all aspects of the world in which we operate environment, social, economic creating a better tomorrow than today.

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Vision Statement Examples

Dells vision is to create a company culture where environmental excellence is second nature.

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Vision

Clear Business Vision Comprehensive Mission Statement

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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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Mission Statement

An enduring statement of purpose that distinguishes one organization from other similar enterprises A declaration of an organizations reason for being

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Mission Statements are also called

Creed statement Statement of purpose Statement of philosophy Statement of beliefs Statement of business principles A statement defining our business
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Mission Statement Examples

Fleetwood Enterprises will lead the recreational vehicle and manufactured housing industries in providing quality products with a passion for customer-driven innovation. We will emphasize training, embrace diversity and provide growth opportunities for our associates and our dealers. We will lead our industry in the application of appropriate technologies. We will operate at the highest levels of ethics and compliance with a focus on exemplary corporate governance. We will deliver value to our shareholders, positive operating results and industryleading earnings.

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Mission Statement Examples

We aspire to make PepsiCo the worlds premier consumer products company, focused on convenient foods and beverages. We seek to produce healthy financial rewards for investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity.
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Mission Statement Examples

Dells mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet consumer expectations of highest quality; leading technology; competitive pricing; individual and company accountability; best-in-class service and support; flexible customization capability; superior corporate citizenship; financial stability.
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Mission Statement Examples

Proctor & Gamble will provide branded products and services of superior quality and value that improve the lives of the worlds consumers. As a result, consumers will reward us with industry leadership in sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.
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Mission Statement Examples

At LOreal, we believe that lasting business success is built upon ethical standards which guide growth and on a genuine sense of responsibility to our employees, our consumers, our environment and to the communities in which we operate.

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Vision & Mission

Great benefits can be achieved if an organization

Systematically revisits their vision and mission statement Treats them as living documents Considers them to be an integral part of the firms culture

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Vision & Mission

Profit & vision are necessary to effectively motivate a workforce

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Vision & Mission

Shared vision creates a community of interests

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Developing Vision & Mission

A clear mission is needed before alternative strategies can be formulated and implemented

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Developing Vision & Mission Participation by as many managers as possible is important in developing the mission because through involvement people become committed to an organization

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Steps to Developing Vision & Mission Statements

1. 2.

3.

4. 5.

Have managers read related articles Have managers prepare a vision and mission statement for the organization Merge the documents into one and distribute Gather feedback from managers Meet to revise the final document
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Benefits of Mission Statements

Better financial results Unanimity of purpose Resource allocation Establishment of culture Focal point for individuals Establishment of work structure Basis of assessment and control Resolution of divergent views
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Resolution of Divergent Views

A genuine decision must be based on divergent views to have a chance to be a right and effective decision

Considerable disagreement over vision and mission statements can cause trouble if not resolved
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Vision & Mission Statements

Provide unity of direction Promote shared expectations Consolidate values Project a sense of worth and intent Affirm the companys commitment to responsible action

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Declaration of Attitude
Broad in scope Generate strategic alternatives Not overly specific

Reconciles interests among diverse stakeholders

Finely balanced between specificity & generality

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Declaration of Attitude

Arouse positive feelings & emotions Motivate readers to action

Generate favorable impression of the firm

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Declaration of Attitude

Reflect future growth Provide criteria for strategy selection

Basis for generating & evaluating strategic options

Dynamic in nature

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Mission & Customer Orientation Vern McGinnis

Define what the organization is Define what it aspires to be Limited to exclude some ventures Broad enough to allow for growth Distinguishes firm from all others Framework for evaluating activities Stated clearly understood by all
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Mission & Customer Orientation

An effective mission statement:

Anticipates customer needs Identifies customer needs Provides product/service to satisfy needs Identifies the utility of a firms products to its customers

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Utility of Firms Products to Customers

Do not offer me things. Do not offer me clothes. Offer me attractive looks. Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking. Do not offer me a house. Offer me security, comfort, and a place that is clean and happy. Do not offer me books. Offer me hours of pleasure and the benefit of knowledge.
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Utility of Firms Products to Customers

Do not offer me CDs. Offer me leisure and the sound of music. Do not offer me tools. Offer me the benefits and the pleasure that come from making beautiful things. Do not offer me furniture. Offer me comfort and the quietness of a cozy place. Do not offer me things. Offer me ideas, emotions, ambience, feelings, and benefits. Please, do not offer me THINGS.
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Products or Services Customers

Markets

Employees

Mission Components

Technology

Public Image Self-Concept

Survival, Growth, Profits Philosophy

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