٢٠/٠٣/١٤٣٢

١

Ch 2 -1

Chapter 2The Business Vision & Mission

Strategic Management: Concepts & Cases

13th EditionFred David

Ch 2 -2

Chapter Outline

What do we want to become?

What is our business?

Importance of Vision and Mission Statements

٢٠/٠٣/١٤٣٢

٢

Ch 2 -3

Chapter Outline (cont’d)

Characteristics of a mission statement

Components of a mission statement

Writing & evaluating mission statements

Ch 2 -4

“The last thing IBM needs right now is a vision.” (July 1993)

Vision

What IBM needs most right now is a vision.” (March 1996)

-- Louis V. Gerstner, Jr., CEO, IBM Corporation

٢٠/٠٣/١٤٣٢

٣

Ch 2 -5

Vision

Agreement on the basic vision for which the firm strives to achieve in the long run is critically important to the firm’s success.

Ch 2 -6

“What do we want to become?”

Vision

٢٠/٠٣/١٤٣٢

٤

Ch 2 -7

ComprehensiveMission Statement

Vision

Clear BusinessVision

Ch 2 -8

• The vision should be built on a foundation of the organization’s core values and beliefs

• The vision should elaborate a purpose for the organization

• The vision should include a brief summary of what the organization does

• The vision should specify broad goals

Vision

٢٠/٠٣/١٤٣٢

٥

Ch 2 -9

Shared Vision -- Creates commonality of interests Reduce daily monotony )الرتابة ( Provides opportunity & challenge

Vision & Mission

Ch 2 -10

A national organization which represents its members in all aspects of poultry and eggs on both a national and international level

Vision Statement Examples

-- U.S. Poultry & Egg Association

٢٠/٠٣/١٤٣٢

٦

Ch 2 -11

The Vision of USGS is to be a world leader in the natural sciences through our scientific excellence and responsiveness to society’s needs

Vision Statement Examples

-- U.S. Geological Survey (USGS)

Ch 2 -12

To be the first choice in the printed communications business. The first choice is the best choice, and being the best is what Atlanta Web pledges to work hard at being—every day!

Vision Statement Examples

-- Atlanta Web Printers, Inc.

٢٠/٠٣/١٤٣٢

٧

Ch 2 -13

-- 90% of all companies have used a mission statement in the previous five years

Mission Statements

Ch 2 -14

“What is our business?”

Mission Statements

٢٠/٠٣/١٤٣٢

٨

Ch 2 -15

Mission Statements

•Enduring statement of purpose

•Distinguishes one firm from another

•Declares the firm’s reason for being

Ch 2 -16

Mission Statements

•Creed statement (Faith, Dogma, Belief)

•Statement of purpose

•Statement of philosophy

•Statement of business principles

Also referred to as:

٢٠/٠٣/١٤٣٢

٩

Ch 2 -17

Ch 2 -18

Reveal what an organization wants to be and whom it wants to serve

Mission Statements

٢٠/٠٣/١٤٣٢

١٠

Ch 2 -19

Essential for effectively establishing objectives and formulating strategies

Mission Statements

Ch 2 -20

Vision & Mission

Many organizations develop both vision & mission statements

٢٠/٠٣/١٤٣٢

١١

Ch 2 -21

Vision & Mission

Profit & vision are necessary to effectively motivate a workforce

Ch 2 -22

Vision & Mission

Shared vision creates a community of interests

٢٠/٠٣/١٤٣٢

١٢

Ch 2 -23

Developing Vision & Mission

Clear mission is needed before alternative strategies can be formulated and implemented

Ch 2 -24

Developing Vision & MissionA widely used approach to developing a mission statement is to

1. Select several articles about mission statements and ask all managers to read these as background information.

2. Ask managers to prepare a mission statement for the organization.

3. A facilitator, or committee of top managers, should then merge these statements into a single document and distribute this draft to all managers.

4. A request for modifications, additions, and deletions is needed next along with a meeting to revise the document.

IE dept. Example

٢٠/٠٣/١٤٣٢

١٣

Ch 2 -25

Developing Vision & Mission

Participation from diverse managers is important in developing the mission

Ch 2 -26

It is the California Energy Commission’s mission to assess, advocate, and act through public/private partnerships to improve energy systems that promote a strong economy and healthy environment.

Mission Statement Examples

-- California Energy Commission

٢٠/٠٣/١٤٣٢

١٤

Ch 2 -27

The Bellevue Hospital, with respect, compassion, integrity, and courage, honors the individuality and confidentiality of our patients, employees, and community, and is progressive in anticipating and providing future health care services.

Mission Statement Examples

-- The Bellevue Hospital

Ch 2 -28

John Deere has grown and prospered through a long-standing partnership with the world’s most productive farmers. Today, John Deere is a global company with several equipment operations and complementary service businesses. These businesses are closely interrelated, providing the company with significant growth opportunities and other synergistic benefits.

Mission Statement Examples

-- John Deere, Inc.

٢٠/٠٣/١٤٣٢

١٥

Ch 2 -29

Importance of Mission

MissionResource Allocation

Unanimity of Purpose

Organizational Climate

Focal point for work structure

Benefits from a strong mission

Ch 2 -30

Broad in scope

Generate strategic alternatives

Not overly specific

Reconciles interests among diverse stakeholders

Finely balanced between specificity & generality

Effective Missions

٢٠/٠٣/١٤٣٢

١٦

Ch 2 -31

Arouse positive feelings & emotions

Motivate readers to action

Generate favorable impression of the firm

Effective Missions

Ch 2 -32

Reflect future growth

Provide criteria for strategy selection

Basis for generating & evaluating strategic options

Are dynamic in nature

Effective Missions

٢٠/٠٣/١٤٣٢

١٧

Ch 2 -33

Should: Define what the organization is Define what it aspires to be Limited to exclude some ventures

Mission & Customer Orientation – Vern McGinnis

Broad enough to allow for growth Distinguishes firm from all others Stated clearly – understood by all Should be short

Ch 2 -34

Anticipates customer needs Identifies customer needs Provides product/service to satisfy needs

Mission & Customer Orientation

An Effective Mission Statement --

٢٠/٠٣/١٤٣٢

١٨

Ch 2 -35

2x average return on shareholder’s equity Positive relationship to company performance 30% higher return on certain financial measures

Vision & Mission

Research results are mixed, however, firms with formal mission statements generally see a:

Ch 2 -36

MissionElements

6. Customers 3. Markets

8. Employees

12. PublicImage

Self-Concept 2. Philosophy

4. SurvivalGrowthProfit

1. ProductsServices

11. Technology

٢٠/٠٣/١٤٣٢

١٩

MissionElements

Ch 2 -37

1. Strategic Direction 1. Product2. Organization philosophy3. Goal of market leadership4. Commitment to profit5. Geographic domain

2. Stakeholder concern 6. Customers7. Shareholders8. Employees9. Suppliers

3. Strategy Success factors 10. Quality11. Innovation/technology12. environment and social concern

Ch 2 -38

PepsiCo Mission

PepsiCo’s mission is to increase the value of our shareholders’ investment. We do this through sales growth, cost controls, and wise investment resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.

٢٠/٠٣/١٤٣٢

٢٠

Ch 2 -39

Ben & Jerry’s Mission

Ben & Jerry’s mission is to make, distribute and sell the finest quality all-natural ice cream and related products in a wide variety of innovative flavors made from Vermont dairy products. To operate the Company on a sound financial basis of profitable growth, increasing value for our shareholders, and creating career opportunities and financial rewards for our employees. To operate the Company in a way that actively recognizes the central role that business plays in the structure of society by initiating innovative ways to improve the quality of life of a broad community—local, national and international.

Ch 2 -40

Mission Statement Evaluation Matrix

COMPONENTS

Organization CustomersProducts Services Markets

Concern for Survival, Growth,

Profitability Technology

PepsiCo Yes No No Yes No

Ben & Jerry's No Yes Yes Yes No

٢٠/٠٣/١٤٣٢

٢١

Ch 2 -41

Mission Statement Evaluation Matrix

COMPONENTS

Organization PhilosophySelf-

ConceptConcern for Public Image

Concern for Employees

PepsiCo Yes No No No

Ben & Jerry's No Yes Yes Yes

Experience to be shared with you

Ch 2 -42

HE Workshop

٢٠/٠٣/١٤٣٢

٢٢

Ch 2 -43

Local Companies Mission Statement Examples Vision and mission Example 2 Example 3 And more

Local Companies Mission Statement Examples

Ch 2 -44

HIKMA PharmaceuticalsMissionOur mission is to reach world markets in supplying quality products at affordable prices by developing, manufacturing and marketing products that improve the quality of life for people around the globe.Our success is founded on meeting the expectations of all our customers, our people, our shareholders and the communities in which we live and work.

٢٠/٠٣/١٤٣٢

٢٣

Local Companies Mission Statement Examples

Ch 2 -45

Jordan Steel is a Public Limited Shareholding Company (P.L.C.) that was established and registered in Jordan on march 3, 1993 under number (226) in the Public Shareholding Registry of the Ministry of Industry and Trade with a fully paid up capital of 15 million JDs (23 Million Dollars), and a production capacity of 300,000 MT tons per year, making it the largest steel manufacturing company in Jordan. It aims to produce steel in various types and shapes to meet the increasing demand for construction and other steel products in Jordan and the Middle East.

Ch 2 -46

Hatifour mission of improving service and adopting up-to-date methods to keep up with the times. We want to be able to reach our customers wherever they are. And not only that, but we also want our customers to be able to reach us directly with their feedback on our products and services. Afterall, at Hatif Telecom, the customer comes first.

Local Companies Mission Statement Examples

٢٠/٠٣/١٤٣٢

٢٤

Local Companies Mission Statement Examples

Ch 2 -47

Batelco JordanOur mission is to be Jordan's market leader for data communication and internet solutions offering innovation, value, and the highest standard of customer excellence.

Ch 2 -48

The Housing Bank Our Vision The Housing Bank for Trade & Finance is the preferred bank for customersOur Mission Provide innovated banking services of high quality to our retail and corporate clients, which meet their needs and expectations, in line with the latest developments in international financial and banking markets.

Local Companies Mission Statement Examples

٢٠/٠٣/١٤٣٢

٢٥

Ch 2 -49

Movie 1Movie 2