Strategic Management chapter 3 Addis Ababa University

A s h e n a f i A . ( P h D C a n d i d a t e )
A A U , 2 0 2 0
10/21/2020
We believe that from truth alone is born liberty and that
only an educated people can consider itself as really free
and master of its fate.

VISION, MISSION,
VALUES
C H A P T E R T H R E E
10/21/2020

CHAPTER OBJECTIVES
1. Describe the nature and role of vision and mission statements in
strategic management.
2. Identify the components of mission statements.
3. Discuss how clear vision and mission statements can benefit
other strategic-management activities.
4. Evaluate mission and vision statements of different
organizations.
5. Write good vision and mission statements.
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MISSION, VISION AND VALUES
Mission = Your business purpose
who we are,
Vision = The impact we intend to make
where we’re going
Values = The beliefs of the business
what do we value
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THE MISSION STATEMENT
Statement of purpose and business
 Answers the questions:
o Why do we exist?
o What do we do?
o Whom do we serve?
 Makes priorities clear and defines the breadth of activities.
 Forms the foundation for all the other objectives and strategies.
“What is the business of the firm?” “Whom does the firm want to
serve?” “What does the firm want to become?
 Simple yet powerful and inspiring, makes sense to internal and
external stakeholders.
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MISSION STATEMENT COMPONENTS
1. Customers—Who are the firm’s customers?
2. Products or services—What are the firm’s major
products or services?
3. Markets—Geographically, where does the firm
compete?
4. Technology—Is the firm technologically current?
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5. Concern for survival, growth, and profitability—
Is the firm committed to growth and financial
soundness?
6. Philosophy—What are the basic beliefs, values,
aspirations, and ethical priorities of the firm?
7. Self-concept—What is the firm’s distinctive
competence or major competitive advantage?
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8. Concern for public image—Is the firm responsive
to social, community, and environmental concerns?
9. Concern for employees—Are employees a
valuable asset of the firm?
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CHARACTERISTICS OF A GOOD
MISSION STATEMENT
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EXAMPLE MISSION STATEMENTS
• We aspire to make PepsiCo the world’s (3) premier consumer
products company, focused on convenient foods and
beverages (2). We seek to produce healthy financial rewards
for investors (5) as we provide opportunities for growth and
enrichment to our employees (9), our business partners and
the communities (8) in which we operate. And in everything
we do, we strive to act with honesty, openness, fairness and
integrity (6).
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Bank of America:- We believe, very simply, that it is the actions of
individuals working together that build strong communities ... and that
business has an obligation to support those actions in the communities
it serves
Wal-Mart :-Our mission is to enhance and integrate our supplier
diversity programs into all of our procurement practices and to be an
advocate for minority- and women-owned businesses
Microsoft :- At Microsoft, we work to help people and businesses
throughout the world realize their full potential. This is our mission.
Everything we do reflects this mission and the values that make it
possible
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• Dell’s mission is to be the most successful computer company
(2) in the world (3) at delivering the best customer experience in
markets we serve (1). In doing so, Dell will meet customer
expectations of highest quality; leading technology (4);
competitive pricing; individual and company accountability (6);
best-in-class service and support (7); flexible customization
capability (7); superior corporate citizenship (8); financial
stability (5).
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• Procter & Gamble will provide branded products and services
of superior quality and value (7) that improve the lives of the
world’s (3) consumers. As a result, consumers (1) will reward
us with industry leadership in sales, profit (5), and value
creation, allowing our people (9), our shareholders, and the
communities (8) in which we live and work to prosper.
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• At L’Oreal, we believe that lasting business success is
built upon ethical (6) standards which guide growth and
on a genuine sense of responsibility to our employees (9),
our consumers, our environment and to the communities
in which we operate (8).
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SAMPLE MISSION STATEMENTS
To establish Starbucks as the premier
purveyor of the finest coffee in the world
while maintaining our uncompromising
principles as we grow.
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SAMPLE MISSION STATEMENTS
Google Mission Statement: "Google's mission is to organize the
world's information and make it universally accessible and
useful.
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VISION STATEMENTS
THIS IS THE PLACE TO DREAM
BIG!
A vision statement should answer
the basic question,
“What do we want to become?”
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THE VISION STATEMENT
 A guiding image of success—What will success look
like?
 The realization of the mission.
 How the world will be improved if the organization
achieves its purpose: what the future will be like.
 Also guides priorities and the scope and scale of
activities.
 Grand enough to inspire, realistic enough that people
start to believe that it can and will happen.
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VISION STATEMENTS
A GOOD VISION IS…
Short, Preferably One Sentence
Inspiring
Focuses On Serving The World
Is Very Ambitious
Describes The Ideal Result You
Want To Achieve
YOUR VISION
CHECKLIST:
 Does It Excite You?
 Does It Tell The World
About The Good You
Want To Do?
 Is It Bigger Than You?
 Is It Simple?
 Is It Clear?
 Is It About What You
Can Give And Not About
What You’ll Get?
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SAMPLE VISIONS
Vision Statement
Samples
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SAMPLE VISIONS
John F. Kennedy's Moon Landing Mission Statement
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EXAMPLES:
• Lincoln: “Preserve the Union”
• FDR: “End the depression”
• Nelson Mandela: “End Apartheid”
• Mother Teresa: “Show mercy and compassion to the
dying”
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• Thomas Edison dreamed of a lamp that could be
operated by electricity, began where he stood to put his
dream into action, and despite more than ten thousand
failures, he stood by that dream until he made it a
physical reality. Practical dreamers do not quit!
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ORGANIZATIONAL VALUES
o Organizational values are abstract ideas that
guide organizational thinking and actions
o Values represent the foundation on which
the company is formed
o A company's organizational values let others
know what it is, why it has been created, and
how it is different from other companies.
10/21/2020

ORGANIZATIONAL VALUES
Examples of Values:
Integrity Honesty Quality
Fairness Empowerment Professionalism
Fun Balance Trustworthy
Loyalty Partnership Accountability
Respect Creativity Communication
Teamwork Diversity Safety
Responsibility Growth Optimism
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GOOGLE VALUES:
TEN THINGS
WE KNOW TO BE TRUE
Source: http://www.google.com/about/company/philosophy/
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BENEFITS OF HAVING A CLEAR MISSION
AND VISION
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ROLES PLAYED BY MISSION AND VISION
1. Communicate the purpose of the
organization to stakeholders
2. Inform strategy development
3. Develop the measurable goals and
objectives by which to gauge the success of
the organization’s strategy
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USE YOUR MISSION AND VISION
STATEMENTS TO…
1. Define your organization to the world.
2. Guide your decision making.
3. Inspire your constituents (clients, community,
board, staff and donors).
4. Promote your cause.
10/21/2020

IMPORTANCE OF VISION AND
MISSION STATEMENTS
1. To ensure unity of purpose within the organization.
2. To provide a basis, or standard, for allocating organizational
resources.
3. To establish a general tone or organizational climate.
4. To facilitate the translation of objectives into a work structure.
5. To specify organizational purposes.
10/21/2020

10/21/2020

http://annual-sustainability-report-2010.pirelli.com/en/creation-value/stakeholder-engagement10/21/2020

10/21/2020

INDIVIDUAL ASSIGNMENT:
REVIEWSELECT ANY LOCAL BUSINESS AND EVALUATE ITS
MISSION, VISION & VALUES
10/21/2020

Strategic Management chapter 3 Addis Ababa University

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