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Chapter 2

The Business Vision & Mission

Strategic Management:
Concepts & Cases
14th Edition
Fred David

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Ch 2 -1

Chapter Outline
What Do We Want to Become?

What Is Our Business?

Importance of Vision and Mission Statements

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Ch 2 -2

Chapter Outline (contd)


Characteristics of a Mission Statement

Components of a Mission Statement

Writing & Evaluating Mission Statements

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Ch 2 -3

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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Ch 2 -4

Vision

Agreement on the basic vision for which the


firm strives to achieve in the long run is
critically important to the firms success.

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Vision

What do we want to become?

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Ch 2 -6

Vision

Clear Business
Vision
Comprehensive
Mission Statement

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Vision & Mission

Shared Vision
Creates commonality of interests
Reduces daily monotony
Provides opportunity & challenge

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Ch 2 -8

Vision Statement Examples

Tyson Foods vision is to be the worlds first


choice for protein solutions while
maximizing shareholder value.

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Ch 2 -9

Vision Statement Examples

General Motors vision is to be the world


leader in transportation products and related
services.

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Ch 2 -10

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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Ch 2 -11

Vision Statement Examples

Dells vision is to create a company culture


where environmental excellence is second
nature.

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Ch 2 -12

Mission Statements

90% of all companies have used a


mission statement in the previous five
years

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Ch 2 -13

Mission Statements

What is our business?

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Ch 2 -14

Mission Statements

Enduring statement of purpose


Distinguishes one firm from another
Declares the firms reason for being

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Ch 2 -15

Mission Statements
Also referred to as:

Creed statement
Statement of purpose
Statement of philosophy
Statement of business principles

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Ch 2 -16

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Mission Statements

Reveal what an organization wants to be


and whom it wants to serve

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Mission Statements

Essential for effectively establishing


objectives and formulating strategies

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Ch 2 -19

Vision & Mission

Many organizations develop both vision &


mission statements

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Ch 2 -20

Vision & Mission

Profit & vision are necessary to effectively


motivate a workforce

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Ch 2 -21

Vision & Mission

Shared vision creates a community of


interests

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Ch 2 -22

Developing Vision & Mission

Clear mission is needed before alternative


strategies can be formulated and
implemented

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Ch 2 -23

Developing Vision & Mission

Participation from diverse managers is


important in developing the mission

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Ch 2 -24

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 industry-leading earnings.

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Ch 2 -25

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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Ch 2 -26

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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Ch 2 -27

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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Ch 2 -28

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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Ch 2 -29

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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Effective Missions

Broad in scope
Generate strategic
alternatives
Not overly specific
Reconciles interests among
diverse stakeholders
Finely balanced between
specificity & generality

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Ch 2 -31

Effective Missions

Arouse positive feelings &


emotions
Motivate readers to action
Generate favorable
impression of the firm

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Effective Missions

Reflect future growth

Provide criteria for strategy


selection
Basis for generating &
evaluating strategic options
Are dynamic in nature

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Ch 2 -33

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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Ch 2 -34

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
Stated clearly understood by all

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Ch 2 -35

Mission & Customer


Orientation
An Effective Mission Statement

Anticipates customer needs


Identifies customer needs
Provides product/service to satisfy needs

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Ch 2 -36

Social Policy & Mission


Managerial philosophy shapes social policy

Affects development of vision & mission

Responsibilities to

Consumers
Environmentalists
Minorities
Communities

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Ch 2 -37

Social Policy & Mission

Social policy should be integrated in all


strategic-management activities
Mission should convey the social
responsibility of the firm

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Ch 2 -38

Products or
Services

Markets

Customers

Employees

Mission
Components

Technology

Survival,
Growth,
Profits

Public
Image
Self-Concept

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Philosophy

Ch 2 -39

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Ch 2 -40

Mission Statement Evaluation Matrix


COMPONENT

COMPONENT

COMPONENT

Customers

Products
or Services

Markets

Concern for
Survival,
Growth,
Profitability

Technology

Fleetwood Ent.

Yes

Yes

No

Yes

Yes

Ben & Jerry's

No

Yes

Yes

No

Yes

Royal Caribbean

Yes

No

No

No

No

Dell

Yes

Yes

Yes

Yes

Yes

Proctor & Gamble

Yes

No

Yes

No

Yes

LOreal

No

No

No

No

No

Organization

COMPONENT

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COMPONENT

Ch 2 -41

Mission Statement Evaluation Matrix


COMPONENT

COMPONENT

COMPONENT

COMPONENT

Philosophy

SelfConcept

Concern for
Public Image

Concern for
Employees

Fleetwood Ent.

Yes

Yes

No

Yes

PepsiCo

Yes

No

Yes

Yes

Royal Caribbean

Yes

Yes

No

Yes

Dell

Yes

Yes

Yes

No

Proctor & Gamble

No

Yes

Yes

Yes

LOreal

No

Yes

Yes

Yes

Organization

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Ch 2 -42

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