Vision and Mission Statements

Laying Out Strategic Intent

Vision and Mission Statements

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Ashish Arora, GNDU College

VISION

• It is a statement of what we want to become or where we want to be.

• It focuses on what the firm strives to achieve in the long term.

• It should preferably be one sentence long and must be put forward by as many managers as possible.

• Must be written before prescribing the mission statement.

Vision and Mission Statements-

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VISION STATEMENT-SOME EXAMPLES • Tyson Foods’ vision is to be the world’s first choice for protein solutions while maximizing

shareholder value.

• 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.

• The vision of First Reliance Bank is to be recognized as the largest and most profitable bank in

South Carolina.

• Samsonite’s vision is to provide innovative solutions for the traveling world.

• Royal Caribbean’s vision is to empower and enable our employees to deliver the best vacation experience for our guests, thereby generating superior returns for our shareholders and enhancing the well-being of our communities.

• Procter & Gamble’s vision is to be, and be recognized as, the best consumer products company in the world.

• General Motors’ vision is to be the world leader in transportation products and related services.

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MISSION STATEMENT

• It answers the pivotal question “What is our business and why we are in existence?” A clear mission statement is essential for effectively establishing objectives and formulating strategies.

• Sometimes called a creed statement, a statement of purpose, a statement of philosophy, a statement of beliefs, a statement of business principles, or a statement “defining our business,” a mission statement reveals what an organization wants to be and whom it wants to serve.

• All organizations have a reason for being, even if strategists have not consciously transformed this reason into writing. Carefully prepared statements of vision and mission are widely recognized by both practitioners and academicians as the first step in strategic management

Vision and Mission Statements- Ashish Arora, GNDU College

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IN PETER F. DRUCKER’S WORDS

• A business mission is the foundation for priorities, strategies, plans, and work assignments. It is the starting point for the design of managerial jobs and, above all, for the design of managerial structures. Nothing may seem simpler or more obvious than to know what a company’s business is.

• A steel mill makes steel, a railroad runs trains to carry freight and passengers, an insurance company underwrites fire risks, and a bank lends money. Actually, “What is our business?” is almost always a difficult question and the right answer is usually anything but obvious. The answer to this question is the first responsibility of strategists. Only strategists can make sure that this question receives the attention it deserves and that the answer makes sense and enables the business to plot its course and set its objectives


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MISSION STATEMENT-SOME EXAMPLES

• We aspire to make PepsiCo the world’s premier consumer 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 the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and

integrity.

• We 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. 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. We are committed to act in the highest ethical manner and respect the rights and dignity of others.


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MISSION STATEMENT-SOME 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 customer expectations of highest quality; leading technology; competitive pricing; individual and company accountabilitY; best-in-class service and support; flexible customization capability; superior corporate citizenship ; financial stability.

• Procter & Gamble will provide branded products and services of superior quality and value that improve the lives of the world’s consumers. As a result, consumers will reward us 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.

• 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



BENEFITS OF VISION AND MISSION STATEMENTS

King and Cleland recommended following benefits arising from meticulously written vision and mission statements :

1. To ensure unanimity 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 serve as a focal point for individuals to identify with the organization’s purpose and direction, and to deter those who cannot from participating further in the organization’s activities

5. To facilitate the translation of objectives into a work structure involving the assignment of tasks to responsible elements within the organization

6. To specify organizational purposes and then to translate these purposes into objectives in such a way that cost, time, and performance parameters can be assessed and controlled


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CHARACTERISTICS OF A MISSION STATEMENT

• A Declaration of Attitude • A Customer orientation 1. Do not offer me things. 2. Do not offer me clothes. Offer me attractive looks. 3. Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking. 4. Do not offer me a house. Offer me security, comfort, and a place that is clean and

happy. 5. Do not offer me books. Offer me hours of pleasure and the benefit of knowledge. 6. Do not offer me CDs. Offer me leisure and the sound of music. 7. Do not offer me tools. Offer me the benefits and the pleasure that come from making 8. beautiful things. 9. Do not offer me furniture. Offer me comfort and the quietness of a cozy place. 10. Do not offer me things. Offer me ideas, emotions, ambience, feelings, and benefits. 11. Please, do not offer me things.


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CHARACTERISTICS OF A MISSION STATEMENT

• 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. 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? 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?


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A Typical Mission Statement

• Broad in scope; do not include monetary amounts, numbers, percentages, ratios, or objectives

• Less than 250 words in length

• Inspiring

• Identify the utility of a firm’s products

• Reveal that the firm is socially responsible

• Reveal that the firm is environmentally responsible

• Include nine components

customers, products or services, markets, technology, concern for survival/growth/ profits, philosophy, self-concept, concern for public image, concern for employees

• Reconciliatory

• Enduring


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1. Customers We believe our first responsibility is to the doctors, nurses, patients, mothers, and all others who use our products and services. (Johnson & Johnson) 2. Products or Services Standard Oil Company (Indiana) is in business to find and produce crude oil, natural gas, and natural gas liquids; to manufacture high-quality products useful to society from these raw materials; and to distribute and market those products and to provide dependable related services to the consuming public at reasonable prices. (Standard Oil Company) 3. Markets We are dedicated to the total success of Corning Glass Works as a worldwide competitor. (Corning Glass Works) 4. Technology We will continually strive to meet the preferences of adult smokers by developing technologies that have the potential to reduce the health risks associated with smoking. (RJ Reynolds)

NINE COMPONENTS OF MISSION STATEMENT-SOME EXAMPLES



5. Concern for Survival, Growth, and Profitability To serve the worldwide need for knowledge at a fair profit by adhering, evaluating, producing, and distributing valuable information in a way that benefits our customers, employees, other investors, and our society. (McGraw-Hill) 6. Philosophy Our world-class leadership is dedicated to a management philosophy that holds people above profits. (Kellogg) 7. Self-Concept Crown Zellerbach is committed to leapfrogging ongoing competition within 1,000 days by unleashing the constructive and creative abilities and energies of each of its employees. (Crown Zellerbach) 8. Concern for Public Image To share the world’s obligation for the protection of the environment. (Dow Chemical) 9. Concern for Employees To recruit, develop, motivate, reward, and retain personnel of exceptional ability, character, and dedication by providing good working conditions, superior leadership, compensation on the basis of performance, an attractive benefit program, opportunity for growth, and a high degree of employment security. (The Wachovia Corporation)

REFERENCE

• Strategic Management : Concept and Cases- Fred. R. David (prentice Hall International Edition)- Chapter 2



Vision and Mission Statements

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