Chapter 2: the Business Vision and Mission

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Strategic Management Concepts & Cases
Fred R. David
8th edition

C
PowerPoint Slides By: Anthony F. Chelte Western New England College Ch. 2-1 © 2001 Prentice Hall

OBJECTIVES OF THIS HAPTER
• Describe the nature and role of vision and mission statements in strategic management • Describe why mission statement is important • Identify the components of mission statements • Discuss how vision and mission statements can benefit strategic management activities • Evaluate mission statements of different organizations • Write good vision and mission statements Ch. 2-2 © 2001 Prentice Hall

Comprehensive Strategic Management Model

External Audit

Vision & Mission Statements

Long-Term Objectives

Generate, Evaluate, Select Strategies

Implement Strategies: Mgmt Issues

Implement Strategies: Marketing, Fin/Acct, R&D, CIS

Measure & Evaluate Performance

Internal Audit

Ch. 2-3 © 2001 Prentice Hall

Vision & Mission
That business mission is so rarely given adequate thought is perhaps the most important single cause of business frustration. —Peter Drucker—
Ch. 2-4 © 2001 Prentice Hall

Vision & Mission (Cont’d)
Mission statement answers the question:

“What is our business?”

Ch. 2-5 © 2001 Prentice Hall

Vision & Mission (Cont’d)
Vision statement answers the question:

“What do we want to become?”
Ch. 2-6 © 2001 Prentice Hall

Vision & Mission (Cont’d)
• • • • Many companies develop both Shared vision can motivate employees Develops a commonality of interests Helps focus on opportunity & challenge

Ch. 2-7 © 2001 Prentice Hall

Developing Vision & Mission
• Clear mission is needed before alternative strategies can be formulated and implemented • Important to have as broad range of participation as possible among managers in developing the mission Ch. 2-8 © 2001 Prentice Hall

Examples
Vision Statement VESTEL “To be the world’s most powerful technology and production group in the sector”

Ch. 2-9 © 2001 Prentice Hall

Examples (Cont’d)
Mission Statement VESTEL • The mission of vestel home appliances is to introduce economical innovate and competitive products, meeting demands and expectations of its customers both in Turkey and in the world by the quality system applied and continuos development principle adopted.” Ch. 2-10 © 2001 Prentice Hall

Examples (Cont’d)
Vision Statement ” Transforming the improvements of floor and wall tile products and technologies into aesthetic and useful products by mercurially applying them for our establishment, offering these products to foreign and domestic customers with service beyond expectations.”

-UŞAK SERAMİKCh. 2-11 © 2001 Prentice Hall

Examples (Cont’d)
Mission Statement UŞAK SERAMİK Aiming to produce products which will make our customers glad. We will improve our operation by grounding on customer satisfaction and using innovative product, service and cuttingedge technologies. We will aim to be an establishment which constantly improves its entire activities by developing institutional and personal knowledge and experiences. We have been settling down to improvement and participation of our employees to this improvement with their education, communication and team work. Ch. 2-12 © 2001 Prentice Hall

Examples (Cont’d)
Vision Statement
“Goldas's vision is to create valuable and loyal customers with the world's most prestigious, most trusted jewelry brand and to be a strong player in global precious metal trade. GOLDAŞ Ch. 2-13 © 2001 Prentice Hall

Examples (Cont’d)
Mission Statement
“Goldas mission is to create precious goods of added value that globally help us spread joy and quality of life and to make people feel good.” GOLDAŞ Ch. 2-14 © 2001 Prentice Hall

Characteristics of a Mission
According to Vern McGinnis, mission should: 1. Define what the organization is 2. Define what the organization wants to be 3. Limited to exclude some ventures 4. Broad enough to allow for creative growth 5....
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