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strategic-chapt-2.ppt
1.
Copyright ©2013 Pearson
Education, Inc. publishing as Prentice Hall The Business Vision and Mission Chapter Two
2.
Copyright ©2013 Pearson
Education What Do We Want to Become? A vision statement should answer the basic question, “What do we want to become?” The vision statement should be short, preferably one sentence, and as many managers as possible should have input into developing the statement. 2-2
3.
Copyright ©2013 Pearson
Education What Is Our Business? Mission statement a declaration of an organization’s “reason for being.” answers the key question “What is our business?” important for effectively establishing objectives and formulating strategies 2-3
4.
Copyright ©2013 Pearson
Education Mission Statement Mission statement disclose what an organization wants to be and whom it wants to serve Also called a statement of purpose, a statement of philosophy, a statement of beliefs, and a statement of business principles 2-4
5.
Copyright ©2013 Pearson
Education The Process of Developing Vision and Mission Statements Select several articles about these statements and ask all managers to read these as background information. Ask managers themselves to prepare a vision and mission statement for the organization. 2-5
6.
Copyright ©2013 Pearson
Education The Process of Developing Vision and Mission Statements Merge these statements into a single document and distribute the draft statements to all managers Process should create an “emotional link” and “sense of mission” between the organization and its employees 2-6
7.
Copyright ©2013 Pearson
Education 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. 2-7
8.
Copyright ©2013 Pearson
Education Characteristics of a Mission Statement A mission statement should: 1. define what the organization is and what the organization aspires to be. 2. distinguish a given organization from all others. 3. serve as a framework for evaluating both current and prospective activities. 4. be clear to be widely understood throughout the organization. 2-8
9.
Copyright ©2013 Pearson
Education 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? 2-9
10.
Copyright ©2013 Pearson
Education Mission Statement Components 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? 2-10
11.
Copyright ©2013 Pearson
Education Mission Statement Components 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? 2-11
12.
Copyright ©2013 Pearson
Education 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). 2-12
13.
Copyright ©2013 Pearson
Education Example Mission Statements 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). 2-13
14.
Copyright ©2013 Pearson
Education Example Mission Statements 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. 2-14
15.
Copyright ©2013 Pearson
Education Example Mission Statements 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). 2-15
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