The Business Vision and Mission
Learning Objectives
1. Describe the nature and role of vision statements in strategic
management.
2. Describe the nature and role of mission statements in strategic
management.
3. Discuss the process of developing a vision and mission
statement.
4. Discuss how clear vision and mission statements can
benefit other strategic-management activities.
5. Describe the characteristics of a good mission statement.
6. Identify the components of mission statements.
7. Evaluate mission statements of different organizations
and write effective vision and mission statements.
Vision Statement
A vision statement should answer the basic question:
“What do we want to become?”
What Do We Want to Become?
vThe vision statement should be short, preferably one sentence,
and as many managers as possible should have input into developing the
statement.
vThe vision statement should reveal the type of business the
firm engages.
Vision Statement Examples
vGeneral Motors’ vision is to be the world leader in
transportation products and related services. (Author comment: Good statement)
vPepsiCo’s responsibility is to continually improve all
aspects of the world in which we operate— environment, social,
economic—creating a better tomorrow than today. (Author comment: Statement is too
vague; it should reveal how the firm’s food and beverage business benefits people)
Mission Statement
vA declaration of an organization's “reason for being.”
vIt answers the pivotal question “What is our business?”
vIt is essential for effectively establishing objectives and
formulating strategies.
Mission Statement
v.It reveals what an organization wants to be and whom it
wants to serve
v.It is also called a creed statement, a statement of purpose,
a statement of philosophy, a statement of beliefs, and a statement of business
principles
Developing Vision & Mission Statements
A widely used approach includes:
vSelect several articles about these statements and ask all managers
to read these as background information.
vAsk managers themselves to prepare a vision and mission
statement for the organization.
vA facilitator or committee of top managers should then
merge these statements into a single document and distribute the draft
statements to all managers.
vA request for modifications, additions, and deletions is
needed next, along with a meeting to revise the document.
Importance of Vision and Mission Statements
vTo make sure all employees/managersunderstand the firm’s purpose
or reason for being.
vTo provide a basis for prioritization of keyinternal and
external factors utilized to formulate feasible strategies.
vTo provide a basis for the allocation of resources.
vTo provide a basis for organizing work,
departments, activities, and segments around a common purpose.
Benefits of Having a Clear Mission and Vision
Characteristics of a Mission Statement
vA good mission statement allows for the generation and
consideration of a range of feasible alternative objectives and strategies without
unduly stifling management creativity.
vA mission statement needs to be broad to reconcile
differences effectively among, and appeal to, an organization's diverse
stakeholders
Characteristics of a Mission Statement
Stakeholders
vinclude employees, managers, stockholders, boards of
directors, customers, suppliers, distributors, creditors, governments (local,
state, federal, and foreign), unions, competitors, environmental groups, and
the general public.
A Customer Orientation
A mission statement should:
vdefine what the organization is and what the organization aspires
to be
vbe limited enough to exclude some ventures and broad enough
to allow for creative growth
vdistinguish a given organization from all others
A Customer Orientation
A mission statement should also:
vserve as a framework for evaluating both current and prospective
activities
vbe stated in terms sufficiently clear to be widely
understood throughout the organization
A Customer Orientation
vA good mission statement reflects the anticipations of customers.
vThe operating philosophy of organizations should be to
identify customers' needs and then provide a product or service to fulfill
those needs.
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?
5. Survival, growth, firm committed to soundness?and profitability—Is
the growth and financia
Mission Statement Components
6. Philosophy—What are the basic beliefs, values,
aspirations, and ethical priorities of the firm?
7. Self-concept (distinctive competence)— What is the firm’s
major competitive advantage?
8. Public image—Is the firm responsive to social, community,
and environmental concerns?
9. Employees—Are employees a valuable asset of the firm?
Example Mission Statements
PepsiCo
vWe 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).
vAuthor comment: Statement lacks three components:
Customers (1), Technology (4), and Distinctive Competence (7);
62 words
Example Mission Statements
Royal Caribbean
vWe are loyal to Royal Caribbean and Celebrity and strive
for
continuous improvement in everything we do. We always
provide service with a friendly greeting and a smile (7). We anticipate the
needs of our customers and make all efforts to exceed our customers’ expectations.
We take ownership of any problem that is brought to our attention. We engage in
conduct that enhances our corporate reputation and employee morale (9). We are
committed to act in the highest ethical manner and respect the rights and dignity
of others (6).
vAuthor comment: Statement lacks six components:
Customers (1), Products/Services (2), Markets (3), Technology
(4), Survival/Growth/Profits (5), and Public Image (8); 86 words
Exemplary Proposed Mission Statement
Avon
vOur mission is to provide women (1) quality
fragrances, cosmetics, and jewelry (2) at reasonable prices
backed by outstanding customer service provided by our thousands of
door-to-door sales representatives (7, 9) operating globally (3). We use the latest
technology (4) to profitably develop and market products desired by women all
over the world (5). Avon representatives put integrity first (6) in setting a good
example in every community (8) they operate—as they sell beauty. (58 words)
Exemplary Proposed Mission Statement
L’Oreal
vOur mission is to design, produce, and distribute the
world’s best fragrances, perfumes, and personal care
products (2) to women, men, and children (1) by utilizing the latest
technological improvements (4). We empower our highly creative team of
researchers to develop safe, eco-friendly (7) products that
will enable our firm to profitably grow (5) through thousands of retail outlets.
We strive to be one of the most socially responsible (8) firms on the planet
(3) and appreciate our employees (9) making that happen, while following the “golden
rule” in all that we do (6). (85 words)
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