Chapter 2 The Business Vision & Mission

Strategic Management: Concepts & Cases 13th Edition Fred David

Strategic Management

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Chapter Outline (contd)

Characteristics of a Mission Statement

Components of a Mission Statement

Writing & Evaluating Mission Statements

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Vision

What do we want to become?

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Vision

Clear Business Vision Comprehensive Mission Statement

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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 Statement Engro Corporation

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Mission Statements

What is our business?

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Mission Statements

Essential for effectively establishing objectives and formulating strategies

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Vision & Mission

Many organizations develop both vision & mission statements

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Vision & Mission

Shared vision creates a community of interests

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Developing Vision & Mission

Clear mission is needed before alternative strategies can be formulated and implemented

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Developing Vision & Mission

Participation from diverse managers is important in developing the mission

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Characteristics of a Mission Statement

A good mission should not discourage creativity A mission statement needs to be broad to effectively reconcile differences and appeal to the organizations diverse stakeholders.

A Customer Orientation Declaration of Social Policy

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PIA

Vision Statement PIAs vision is to be world class airline meeting customer perspective through excellent services , on time performance, innovative products and absolute safety.

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PIA- MISSION STATEMENT

Employee teams will contribute towards making PIA a global airline of choice through: Offering quality customer services and innovative products Using state of art technology Ensuring cost effective measures in procurement and operation Developing safety culture
Ch 2 -15

Strategic Management

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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Examples of Mission Statements

Googles mission is to organize the worlds information and make it universally accessible and useful.

Coke: To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

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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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Importance of Mission
Benefits from a strong mission

Unanimity of Purpose

Resource Allocation

Mission
Organizational Climate Focal Point for Work Structure

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Natural Environmental Perspective

Is Your Firm Environmentally Proactive?

Preserving the natural resources is good business! Reactive environmental policies can be expensive Proactive policies force companies to innovate and upgrade processes

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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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Mission Statement Components

Philosophy : What are the basic beliefs, values, aspirations and ethical priorities of the firm Self concept: The companys competitive advantage Concern for public image: CSR activities

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Mission Statement Evaluation Matrix

COMPONENT COMPONENT COMPONENT COMPONENT COMPONENT

Organization

Customers

Products or Services

Markets

Concern for Survival, Growth, Profitability

Technology

PIA

Yes

Yes

No

Yes

Yes

ENGRO FOODS
Royal Caribbean Dell Proctor & Gamble LOreal

No
Yes Yes Yes No

Yes
No Yes No No

Yes
No Yes Yes No

No
No Yes No No

Yes
No Yes Yes No

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Mission Statement Evaluation Matrix

COMPONENT COMPONENT COMPONENT COMPONENT

Organization

Philosophy

SelfConcept

Concern for Public Image

Concern for Employees

PIA
PepsiCo Royal Caribbean Dell Proctor & Gamble LOreal

NO
Yes Yes Yes No No

NO
No Yes Yes Yes Yes

No
Yes No Yes Yes Yes

Yes
Yes Yes No Yes Yes

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For Review (Chapter 2)

Key Terms & Concepts
Concern for Employees Customers

Concern for Public Image

Survival, Growth, & Profitability Creed Statement

Markets
Mission Statement Components Managerial Philosophy
Ch 2 -26

Strategic Management

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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