Vision and Mission Analysis of Selected Saudi Organizations

Sundaram Nataraja

Professor – Department of Management

College of Business Administration - King Saud University

snataraja@ksu.edu.sa

Mostafa M. Kamel

Doctoral Student – Department of Management

College of Business Administration - King Saud University

mkamel@ksu.edu.sa

Zia Ul-Haq Paracha

Researcher – Management Information Systems Department

College of Business Administration - King Saud University

zparacha@ksu.edu.sa

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 Teaching Notes

Introduction: This teaching-note has been produced by the authors of the case called “Vision
and Mission Analysis of Selected Saudi Organizations”. It is a document designed to be
accompanied by the original case for the purpose of offering other potential instructors valuable
insights into the case and the learning which can be derived from the case. The notes provides
suggestions on how to maximize the learning potential of the case.

Summary of the Case: In the Arab world, most of the CEOs and senior managers in both
emerging and established corporations spend every moment of their time upon solving
administrative issues on a daily basis. Many of those strategists often overlook the need for
developing vision and mission statements; and this is a major problem in those organizations.
Peter Drucker – the Management Guru – (1974) emphasized the importance of mission for any
organization, stating:

A business mission is the foundation for priorities, strategies, plans, and work
assignments. It is the starting point for the design of managerial jobs and, above all, for
the design of managerial structures. Nothing may seem simpler or more obvious than to
know what a company’s business is. A steel mill makes steel, a railroad runs trains to
carry freight and passengers, an insurance company underwrites fire risks, and a bank
lends money. Actually, “What is our business?” is almost always a difficult question and
the right answer is usually anything but obvious. The answer to this question is the first
responsibility of strategists. Only strategists can make sure that this question receives the
attention it deserves and that the answer makes sense and enables the business to plot its
course and set its objectives. (p 61)

Perhaps, it may be possible to understand vision and mission statements by focusing on a

business when it is first started. According to David, Ali, and Al-Aali (2011), a new business is
simply a collect of ideas in the beginning. Starting a new business rests on a set of beliefs that the
new organization can offer some product or service to some customers, in some geographical
area, using some type of technology, at a profitable price. More importantly, a new business
owner typically believes that management philosophy of the new enterprise will result in a
favourable public image and that this concept of the business can be communicated to, and will

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be adopted by, important constituencies. We can expect when the set of beliefs about a business
is put into writing at its inception, the resulting document mirrors the same basic ideas that
underlie the vision and mission statements. Eventually, the owners and managers find it
necessary to revise the founding set of beliefs as a business grows over a span of time. However,
those original ideas usually are reflected in the revised vision and mission statements (David,
2009).

Evidently, vision and mission statements can be found in annual reports, displayed throughout
the premises, and distributed widely of well-established organizations. Besides, these statements
are part of several internal reports, business plans, and customer service agreements.
Researchers have concluded in a study that almost 90 percent of all companies have used a
mission statement sometime in the previous five years (Bartkus, Glassman, & McAfee, 2000).
Therefore, the authors of this case were convinced to develop an analytical and evaluative case-
study covering the vision and mission statement of selected Saudi organizations.

The case contents are based on research from public sources that are the publically
available/published information on the concerned organizations’ website, hence, this case is
considered as an “Armchair” case. Although the real names of the organizations have been used,
no permissions were sought from those organizations. Besides, the vision and mission statements
introduced in the case required substantial evaluation and further needs additional evaluation
during teaching, therefore, this case is considered as an evaluation case. This has been
developed to iterate the concepts and tools needed to evaluate and write business vision and
mission statements. A practical framework for developing mission statements from large and
small organizations and for profit and non-profit are presented and critically examined. The
process of creating vision and mission statements is the central focus of this case.

Learning Objectives and Target Audience: The intended learning objectives of this
case study are as follows: (a) student will be able to describe the nature, importance, and role of
vision and mission statements for a given organization, (b) students will be able to identify the
components of mission statement in a given mission statement, (c) students will be able to
distinguish effective vision and mission statements that can benefit the organization from weaker
statements, and (d) students will be able to evaluate vision and mission statements of selected
Saudi organizations. The targeted audiences for this case are the undergraduate students
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studying Strategic Management course. There are undergraduate business programs require
students to study a capstone course i.e., Strategic Management. Usually, a capstone course, as an
integrated course inculcating most of the business functional knowledge and skills, will be built
in a curriculum. Besides, the Capstone course will examine and assure the students’ learning in
business functional areas and certain competencies such as communication skills, analytical skill,
critical thinking and problem-solving skills, and so on. Hence, this case might be appropriate to
use in that capstone course to measure several areas of student learning in the assurance of
learning (AoL) process.

Teaching approach and Strategy: This case may be used in an undergraduate class to
impart knowledge about the nature, importance, and role of vision and mission statements in a
selected business organization. Furthermore, this case can be given to students, as a model, to
work on a couple assignments, in which students may be asked to (a) research and select vision
and mission statements for various organizations; (b) form their own (imaginary) proposed
business and write vision and mission statements for that company; and (c) identify various
components of mission statement (please refer to Appendix 1 for model assignments).

Analysis: Many organizations develop both vision and mission statements. An effective vision
is much broader than a vision statement stuck up somewhere on the corporate head office wall.
Effective visions are a combination of ideas that express the following: (a) the organization’s
purpose, their reason for existence, (b) the organization’s core values, who they are and striving
to become, (c) the organization’s value proposition, what makes them unique, what they are
good at and why it matters, and (d) the organization’s strategic intent, a stretch goal and future
aspirations. A vision provides direction and road map into the future, it describes the type of
organizations that you want to become and how it’s unique, and it creates purpose and identity.
According to George Ambler (2013), there certain characteristics recommended as given below
to help evaluate the current vision statement or to create a new one for an organization.

1. Future Focused: An effective vision answers the question “what will our business look
like in 5 to 10 years time?” It describes the organization’s desired future. A vision makes
clear the organization’s direction, providing a clear picture of what the business will look
like in 5 − 10 years time. Vision provides the “big picture”. It sets the context for action.

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2. Directional: An effective vision provides direction and makes clear where the
organization is going. This means that a vision needs to be specific enough to shape
decision making and appropriately broad to allow innovative strategies for realizing the
vision.
3. Clear: An effective vision provides guidance for decision making and independent action.
This requires the vision to be clearly articulated and easily understood. The vision must
clarify focus, direction and constraints, to ensure that scare resources are focused on the
most strategic initiatives. Vision that is clear enables effective allocation of scare
resources. Clarity allows individuals across the organization to have a shared sense of
what’s important and what’s not, to ensure that they are free to act within those
constraints.
4. Relevant: An effective vision is grounded in and an extension of the organizations’ past.
Visions don’t exist in a vacuum. They exist within the current reality and talks to the
context in which the organization exists. The vision must be relevant to the organization
and the times; it reflects the organizations response to the challenges of the day. An
effective vision is a good fit with the organization’s history, current reality, culture and
values. An effective vision connects what has happened in the past to the desired future
this gives the vision credibility.
5. Purpose-Driven: An effective vision provides a larger sense of purpose for the
organization and its people. That purpose must be more meaningful than getting bigger or
beating the competition. Purpose is about why we exist and why anyone should care.
Vision connects people to a meaningful purpose, allowing them to feel that they are part
of something bigger than themselves. As Steve Jobs said, “We’re here to put a dent in the
universe. Otherwise why else even be here?”
6. Values Based: An effective vision connects people to the organizations’ core values.
Values are the beliefs or ideals that the organization shares about what’s good or bad.
They influence the behavior and attitude of people. Given this values are deeply
connected to an organizations’ vision. Vision implies a set of values and beliefs that are
required to support who organization’s need to become to execute the vision.
7. Challenging: An effective vision challenges us; it’s an invitation to greatness. A vision is
a goal that should challenge us, stretch us and set a high standard for the organization.

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 Effective visions represent a future that is beyond what is possible today or what we think
possible tomorrow. It is the highest level goal that unites and challenges an organization.
8. Unique: An effective vision reflects what’s unique about the organization; it recognizes
what makes it different. A vision is unique when it declares what makes the organization
stand out and why it matters. Vision must make clear the activities that the organization
will and will not pursue, the capabilities to be developed and the market position it will
occupy.
9. Vivid: An effective vision provides a vivid mental image of what the organization will be
like in the future. Well-crafted visions describe the future in a way that is easy to imagine
and to picture in the mind’s eye. What would it feel like to work in the future
organization? What would it be like for customers who engage with this organization?
10. Inspiring: An effective vision engages and inspires people to commit to a cause. Vision
appeals to the hearts and minds of people. Vision is inspiring when it captures the hearts
of people. Vision is inspiring when it stops you in your tracks, grabs your heart and
causes you to pay attention. An effective vision moves you emotionally, creating a desire
to sign up to the cause.
(Source: http://www.georgeambler.com/10-characteristics-of-an-effective-vision/)

According to David, Ali, & Al-Aali (2011), “a mission statement is more than a statement of
specific details; it is a declaration of attitude and outlook. It usually is broad in scope for at least
two major reasons.” First, a good mission statement allows for the generation and consideration
of a range of feasible alternative objectives and strategies without unduly stifling management
creativity. Excess specificity would limit the potential of creative growth for the organization.
On the other hand, an overly general statement that does not exclude any strategy alternatives
could be dysfunctional.

A good mission statement describes an organization’s purpose, customers, products or services,

markets, philosophy, and basic technology. According to Vern McGinnis, a mission statement
should (1) define what the organization is and what the organization aspires to be, (2) be limited
enough to exclude some ventures and broad enough to allow for creative growth, (3) distinguish
a given organization from all others, (4) serve as a framework for evaluating both current and
prospective activities, and (5) be stated in terms sufficiently clear to be widely understood

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throughout the organization. A good mission statement reflects the anticipations of customers.
Rather than developing a product and then trying to find a market, the operating philosophy of
organizations should be to identify customers’ needs and then provide a product or service to
fulfill those needs.

Additional reading or reference: Instructors and students are recommended to read

Chapter 2 of the following textbook to understand the concepts clearly, if deemed necessary.

David, F., Ali, A., & Al-Aali, A. (2011). Strategic management: Concepts and cases. (Arab
World Edition). Harlow, U.K.: Pearson Education Ltd.

Feedback: The case was pilot tested with undergraduate students and it proved to be working
effectively. Additionally, the case study was tested with doctoral (PhD) level students to obtain
feedback and it was well received by the students. Therefore, the case can be used for any level
of the students in a business school. However, the instructor can set different parameters of
his/her expectation for learning outcomes. This case is good to be used as an assignment for
students to work on and gain hands-on experience. This case is also suitable for using as a pre-
released case for final examination or mid-term examinations.

References:
Ambler, G. (2013). Ten characteristics of vision statement. Retrieved from
www.georgeambler.com/10-characteristics-of-an- effective-vision/ on 04/04/2014.

David, F., Ali, A., & Al-Aali, A. (2011). Strategic management: Concepts and cases. (Arab
World Edition). Harlow, U.K.: Pearson Education Ltd.
Drucker, P. (1974). Management: Tasks, responsibilities, and practices. New York, NY: Harper
& Row.

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 Appendix 1: Example of Assignments
_____________________________________________________________________________

Assignment – 1: Part -1 (.5 x 4 = 2 Marks) - Guidelines

 You are required to do online research to find out the Vision and Mission statements of
two Saudi companies and two global companies in different industries.
 You can copy and paste the statements; however, you should cite the source of
information appropriately.
Example:
Organization Industry Vision Statement Mission Statement
Name
McDonald’s vision is to be the Be the best employer for our people
world’s best quick service in each community around the world;
McDonald Fast restraint experience. Being the deliver operational excellence to our
Food best means providing customers in each of our restaurants;
outstanding quality, service, and achieve enduring profitable
cleanliness, and value, so that growth by expanding the brand and
we make every customer in leveraging the strengths of the
every restaurant smile. McDonald’s system through
innovation and technology.
Source:
Source: http://www.aboutmcdonalds.com/mc
http://www.aboutmcdonalds.co d/our_company.html Referred on
m/mcd/our_company.html 02/02/2011.
Referred on 02/02/2011.
Copy and paste here Copy and paste here - ½ Mark
Copy and paste here Copy and paste here – ½ Mark
Copy and paste here Copy and paste here – ½ Mark
Copy and paste here Copy and paste here – ½ Mark

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 Part – 2 (1 Mark)

 Firstly, you are required to create your own imaginary company for learning purposes
 Secondly, have a clear understanding of the nature of business and the Industry in which
your company will be involved with
 Finally, write the Vision and Mission statements for your Imaginary Company.

 Name of my imaginary Company: ________________________________________

 The nature of business of my imaginary company: ____________________________
 The Industry in which the company falls under: ________________________________
 The Vision Statement:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
____________________________________
The Mission Statement:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
________________________________________________________________________

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Write few lines as what have you learned from completing this Assignment:

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________

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 Assignment – 2
 List down the mission statements that you have collected for Assignment 1
 Check the availability of the mission-components in those missions
 Fill the matrix provided for tallying the mission components

For Example

Mission of SABIC

Our mission is to responsibly provide quality products and services through innovation,
learning and operational excellence (7) while sustaining maximum value for our stakeholders
(5). (Authors’ comment: The statement addresses two components: concern for survival,
growth and profitability, and self-concept.)

Mission of Isam K. Kabbani Group

To provide our part of the Arab world (3) with local and reliable services in a variety of
sectors and products (2).To create employment to thousands of personnel and in-house
training for hundreds of young (9) Arab graduates in crucial sectors to the benefit of the IKK
Group (5), the graduates themselves and their own communities (8). To set a good example
of our basic business philosophy: “Hire well, train well, pay well and treat well.”(6).
(Authors’ comment: Statement addresses six components: markets, technology, concern for
survival, growth, and profitability, philosophy, concern for public image, and concern for
employees.

Saudi Research and Marketing Group

To provide high content media services and products (2) that are high quality and reliable. To
build numerous media platforms. (4) To continually invent new products to meet the needs of
various social categories in various regions (3). To service readers, audience and advertisers
(1). (Authors’ comment: statement addresses four components: customers, products or
services, markets, and technology.

Mission of Etisalat

To extend people’s reach. At Etisalat, we are actively developing advanced networks that
will enable people to develop, to learn and to grow (4). (Authors’ comment: statement
addresses one component: technology).

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Mission of Sharjah Islamic Bank

Sharjah Islamic Bank aims to provide the best services by commitment and dedication (7),
forged by a mission to serve people and the society in order to contribute towards its growth
(5).Our Mission has multiple dimensions aimed at communicating with all of our different
audiences.

Customers:

To add value by managing and enhancing individual customer experiences and

providing creatively inspired solutions (1).

Society:

To promote the development of our community by fostering the principles of social

responsibility enshrined in our vision statement (8).

Staff:

To be the employer of first choice in the UAE by providing a culture of knowledge

sharing, teamwork, respect, leadership and initiative (9).

Shareholders:

To create sustainable growth for our stakeholders (5). (Authors’ comment: statement

addresses five components: customers, concern for survival, growth and profitability,

self-concept, concern for public image, and concern for employees. In addition,

customers are not clearly identified.)

Mission of Gulf Glass Manufacturing

Our Mission is to be the World’s best supplier among the glass [industries] and to achieve
leadership position in Glass Market[s] by serving the needs of our customers in innovative
ways (1). [By] saying World’s Best we mean a consistently growing (5) company that
supplies quality glass products and superior service (2). [Being] a successful company, we
can facilitate continuous improvement of products and continue to serve those to whom we
are responsible: our customers and our employees (9). To meet our goals, we are guided by a

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 set of principles values we believe are fundamental to our continued success. We believe that
these principle[s] are a blue print for success. If we live by them, we will achieve our mission
by maintaining a spirit of excellence in everything we do (6).

(Authors’ comment: statement address five components: customers, products or services,

concern for survival, growth and profitability, concern for public image, concern for
employees).

Mission Statement Evaluation Matrix

Component Component Component Component Component Component Component Component Component

Concern for
Products Survival, Concern Concern Total
or Growth, Philo- Self- for Public for out of
Customers Services Markets Profitability Technology sophy Concept Image Employees 9
Organiz-
ation
Isam K.
Kabbani
Group No Yes Yes Yes No Yes No Yes Yes 5
Saudi
Research
and
Marketing
Group Yes Yes Yes No Yes No No No No 4

Etisalat No No No No Yes No No No No 1
Sharjah
Islamic
Bank No No No Yes No No Yes No No 2
Gulf
Glass
Manufact-
uring Yes Yes No Yes No No No Yes Yes 5

SABIC No No No Yes No No Yes Ch 2 -45 No No 2

Ch 2 -45

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