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chapter 2 Vision and mission


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chapter 2 Vision and mission

  2. 2. Vision “What do we want to become?”Agreement on the basic vision for which the firm strives to achieve in the long term is especially important.
  3. 3. Vision Statement ExamplesPepsiCo’s responsibility is to continuallyimprove all aspects of the world in whichwe operate – environment, social,economic – creating a better tomorrowthan today. Copyright © 2011 Pearson Education, Inc. Ch 2 -3 Publishing as Prentice Hall
  4. 4. Vision Statement ExamplesDell’s vision is to create a company culturewhere environmental excellence is second nature.
  5. 5. Vision Clear Business Vision Comprehensive Mission Statement Copyright © 2011 Pearson Education, Inc. Ch 2 -5 Publishing as Prentice Hall
  6. 6. MISSION STATEMENT “What is our business?”Reveals: -what the organization wants to be -whom we want to serve
  7. 7. Mission Statement • An enduring statement of purpose that distinguishes one organization from other similar enterprises • A declaration of an organization’s “reason for being”Copyright © 2011 PearsonEducation, Inc. Ch 2 -7Publishing as Prentice Hall
  8. 8. 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”Copyright © 2011 PearsonEducation, Inc. Ch 2 -8Publishing as Prentice Hall
  9. 9. Mission Statement Examples We aspire to make PepsiCo the world’s premierconsumer 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 thecommunities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity.
  10. 10. Mission Statement Examples Dell’s 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; leadingtechnology; competitive pricing; individual and company accountability; best-in-class serviceand support; flexible customization capability; superior corporate citizenship; financial stability.
  11. 11. Mission Statement Examples Proctor & Gamble will provide branded products and services of superior quality and value that improve the lives of the world’sconsumers. As a result, consumers will rewardus 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.
  12. 12. VISION AND 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 firm’s culture
  13. 13. VISION AND MISSION Profit & vision are necessary to effectively motivate a workforce Shared vision creates a community of interests
  14. 14. Developing Vision & MissionParticipation by as many managers as possible isimportant in developing the mission becausethrough involvement people become committed toan organization A clear mission is needed before alternative strategies can be formulated and implemented
  15. 15. Steps to Developing Vision & Mission Statements 1. Have managers read related articles 2. Have managers prepare a vision and mission statement for the organization 3. Merge the documents into one and distribute 4. Gather feedback from managers 5. Meet to revise the final document
  16. 16. Vision & Mission Statements• Provide unity of direction• Promote shared expectations• Consolidate values• Project a sense of worth and intent• Affirm the company’s commitment to responsible action
  17. 17. Benefits of Mission Statements Better financial results Unanimity of purpose VISION Resource allocation M PLEEstablishment of culture TEXT EXAM EXA PLE EXT T Focal point for individuals E PL TEXT EXAMPLE TE Establishment of work structure M XT XA EX E XT AM TE Basis of assessment and control PL E Resolution of divergent views
  18. 18. Copyright © 2011 PearsonEducation, Inc. Ch 2 -18Publishing as Prentice Hall
  19. 19. Resolution of Divergent Views•A genuine decision must be based ondivergent views to have a chance to be a VISIONright and effective decision TEX MPLE T EX AM T EXA PLE•Considerable disagreement over vision and TEX Emission statements can cause trouble if not PL TEXT EXAMPLE TE M XT XA EX Eresolved TE XT AM PL E
  20. 20. Declaration ofAttitude Broad in scope Broad in scope Generate strategic alternatives Generate strategic alternatives Not overly specific Not overly specific Reconciles interests among Reconciles interests among diverse stakeholders diverse stakeholders Finely balanced between Finely balanced between specificity & generality specificity & generalityCopyright © 2011 PearsonEducation, Inc. Ch 2 -20Publishing as Prentice Hall
  21. 21. Declaration ofAttitude Arouse positive feelings & Arouse positive feelings & emotions emotions Motivate readers to action Motivate readers to action Generate favorable impression Generate favorable impression of the firm of the firmCopyright © 2011 PearsonEducation, Inc. Ch 2 -21Publishing as Prentice Hall
  22. 22. Declaration ofAttitude Reflect future growth Reflect future growth Provide criteria for strategy Provide criteria for strategy selection selection Basis for generating & Basis for generating & evaluating strategic options evaluating strategic options Dynamic in nature Dynamic in nature Copyright © 2011 Pearson Education, Inc. Ch 2 -22 Publishing as Prentice Hall
  23. 23. Mission & Customer Orientation – VernMcGinnis •Define what the organization is •Define what it aspires to be VISION •Limited to exclude some ventures •Broad enough to allow for growth TEX PLE T EX AM AM •Distinguishes firm from all others TEXT EX PLE •Framework for evaluating activities PL E TE M XT XA EX E •StatedXTclearly – understood by all AM TE PL E
  24. 24. Mission & Customer Orientation – VernMcGinnis An effective mission statement: VISION Anticipates customer needs Identifies customer needs TEX PLE T EX TProvides product/service to satisfyMneeds EXAM A PLE TEX Identifies the utility of a firm’s products to E PL TE M XT its customers XA EX TE AM X TE PL E
  25. 25. Utility of Firm’s 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.Copyright © 2011 PearsonEducation, Inc. Ch 2 -25Publishing as Prentice Hall
  26. 26. Utility of Firm’s 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.Copyright © 2011 PearsonEducation, Inc. Ch 2 -26Publishing as Prentice Hall
  27. 27. Products or Services Markets Customers Mission Technology Employees Components Survival, Growth, Public Profits Image Self-Concept PhilosophyCopyright © 2011 PearsonEducation, Inc. Ch 2 -27Publishing as Prentice Hall
  28. 28. Copyright © 2011 PearsonEducation, Inc. Ch 2 -28Publishing as Prentice Hall