What the are Vision and Mission of a company

Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
Ch 2 -1
Chapter 2
The Business Vision & Mission
Strategic Management:
Concepts & Cases
16th Edition
Fred David
2-27-2023

Chapter Objectives
 Describe the nature and role of vision and mission
statement in strategic management
 Discuss why the process of developing a mission
statement is as important as the resulting
document
 Identify the components of mission statement.
 Discuss how clear vision and mission statement
can benefit other strategic-management activities
 Evaluate mission statement of different
organization
 Write good vision and mission statement
Ch 2 -2

Ch 2 -3

Nature and role of vision and mission
statement in Strategic management
 Three critical roles are Played
by Mission and vision statements: (1)
communicate the purpose of the organization
to stakeholders, (2)
inform strategy development, and (3)
develop the measurable goals and objectives
by which to gauge the success of the
organization's strategy.
Ch 2 -4

What is nature of vision
 The nature of a vision means that we are
envisioning a future event, condition or trend
that we've never had to deal with before and
do not yet know how to respond to. Grasping
a vision requires that we grow into the ability
to meet the vision with a solution
Ch 2 -5

What is the nature of mission statement in
strategic management?
 it is defined as provides a sense of direction
to all employees. ... It is, therefore, often
called a strategic management mission
statement. A mission acts as a guide to
decision making for all levels
of management. As a broad goal of an
organization, a mission justifies an
organization's existence.
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Ch 2 -7
Vision (where there is no vision people perish)
 Aspiration should lead to tangible results
otherwise it would be castle in the air.
 Those results are realization of the vision of
an organization.
 It is what ultimately the firm of a person
would like to become (what to become in
future).
 A clear vision statement provides foundation
for developing comprehensive mission
statement

Ch 2 -8
Vision Statement Examples
Tyson Foods’ vision is to be the
world’s first choice for protein
solutions while maximizing
shareholder value.

Ch 2 -9
General Motors’ vision is to be the
world leader in transportation
products and related services.

Ch 2 -10
PepsiCo’s responsibility is to
continually improve all aspects of the
world in which we operate –
environment, social, economic –
creating a better tomorrow than today.

Ch 2 -11
LBS: we are aspiring to develop leaders
who can handle complex business
environment in an ever changing world

Ch 2 -12
Comprehensive
Mission Statement
Vision
Clear Business
Vision

Ch 2 -13
 while the essence of vision is a forward
looking view of what an organization
wishes to become
 “What is our business?” (what an
organization is and why it exist)
Mission Statement

Ch 2 -14
 An enduring statement of purpose
that distinguishes one organization
from other similar enterprises
 A declaration of an organization’s
“reason for being”
Mission Statement

Ch 2 -15
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”

Difference between Mission and
Vision Statement
Mission
1. 1. A statement that
describes the company’s
objectives and its approach
to reach those objectives.
2. 2. Cause
3. 3. Talk about present
4. 4. Where we are at present.
5. 5. Short term (what to
achieve in next 5 years)
6. 6. Then mission statement
Vision: answer the basic
question
1. A short statement that depicts
the company’s aspiration for
the future position of the
company (one sentence)
2. Effect
3. What to achieve in Future
4. Where we want to be?
5. long term
6. established first
Ch 2 -16

Ch 2 -17
9 Mission
Components
Customers
Markets
Employees
Public
Image
Self-Concept Philosophy
Survival,
Growth,
Profits
Products or
Services
Technology

Ch 2 -18
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.
Mission Statement Examples

Ch 2 -19
We aspire to make PepsiCo the world’s premier
consumer products company (customer, and
market 1,2), focused on convenient foods and
beverages (product 3). We seek to produce
healthy financial rewards for investors as we
provide opportunities for growth (concern of
growth 4) and enrichment to our (employees 5),
our business partners and the communities
(public image 6) in which we operate. And in
everything we do, we strive to act with honesty,
openness, fairness and integrity. (self-concept 7)

Ch 2 -20
At L’Oreal, 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.

Mission Statement of LBS
 The school’s approach holds a sharp focus on
coaching our business graduates to innovative
and handle complexity in a changing business
landscape we build capacities of future leaders
in character and values by including personal
and shared ethics. Our prime and distinct
endeavor is to foster students with a holistic
pursuit of excellence by leveraging teaching,
research and entrepreneurial orientation for
innovative productivity gains in all area of
education, social and economic domain
Ch 2 -21

Ch 2 -22
Vision & 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

Starbucks proposed vision
statement (revisit)
 Starbucks Vision Statement (paraphrased)
“Starbucks strives to be the premier roaster and retailer of
specialty coffee globally”.
Starbucks “Improved” Vision Statement
“Starbucks’ vision is to be the most well-known, specialty
coffee, tea, and pastry restaurant in the world, offering
sincere customer service, a welcoming atmosphere, and
unequaled quality”.
Ch 2 -23

Ch 2 -24
Vision & Mission
Profit & vision are necessary to
effectively motivate a workforce

Ch 2 -25
Vision & Mission
Shared vision creates a commonality
of interests

Vision Statement Analysis
 At a minimum, a vision statement should
reveal the type of business the firm engages.
 “To become a best service provider institute
Pakistan”
Ch 2 -26

 “LBS aims to be recognized among the top
business schools on Pakistan”.
“where there is no vision people perish”
Ch 2 -27

Ch 2 -28

Core Values and Philosophical
View of Strategy
Core Values
 Excellence
 Integrity
 Innovation
 Teamwork
 Fairness
 Customer/Student
centricity
 Social responsibility
 Organization exists
to serve the mission
of the business.
Ch 1 -29

LBS Mission Statement
(Class Exercise)
 LBS is committed to produce and nurture future
business leaders who generate value for
business and contribute towards the national
economy. LBS is equally committed to develop
and produce scholars who create, advance,
disseminate management knowledge, and
influence business practices and society at
large.
Ch 1 -30

Ch 2 -31
Steps to Developing Vision &
Mission Statements
1. Managers’ participations
2. Read related articles
3. Ask individually to prepare a vision and
mission statement
4. Merge the documents into one and
distribute
5. Gather feedback from managers
6. Meet to revise the final document

Ch 2 -32
Good Mission Statements
Outcomes
 Better financial results
 Resource allocation
 Establishment of culture
 Focal point for individuals
 Establishment of work structure
 Basis of assessment and control
 Resolution of divergent views

Ch 2 -33

Ch 2 -34
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

Ch 2 -35
Broad in scope
Generate strategic alternatives
Not overly specific
Reconciles interests among
diverse stakeholders
Finely balanced between
specificity & generality
Declaration of
Attitude

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Arouse positive feelings &
emotions
Motivate readers to action
Generate favorable impression
of the firm
Declaration of
Attitude

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Reflect future growth
Provide criteria for strategy
selection
Basis for generating &
evaluating strategic options
Dynamic in nature
Declaration of
Attitude

Ch 2 -38
 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
 Framework for evaluating activities
 Stated clearly – understood by all
Mission & Customer
Orientation – Vern McGinnis

Ch 2 -39
Mission & Customer Orientation
 An effective mission statement:
 Anticipates customer needs
 Identifies customer needs
 Provides product/service to satisfy
needs
 Identifies the utility of a firm’s products
to its customers

Ch 2 -40
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.

Ch 2 -41
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.

Ch 2 -42

What the are Vision and Mission of a company

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