Strategic

Management:
Concepts & Cases

Chapter 2:
The Business Vision
& Mission

Ch. 2-1
2001 Prentice Hall

Chapter Outline
What Is Vision Statement?
What Is Mission Statement?
The Importance of Mission
Statement
Components Of A Mission
Statement
Ch. 2-2
Prentice Hall, 2001 2001 Prentice

Ch 2 -3

Vision & Mission

While a company must continually
adapt to its competitive environment,
there are certain core values that
remain relatively steady and provide
guidance in the process of strategic
decision-making.
These unchanging ideals form the
business vision and are expressed in the
companys mission.
Ch. 2-4
2001 Prentice Hall

Vision Statement
Vision statement answers the question:

What do we want to become?

Ch. 2-5
2001 Prentice Hall

Vision Statements
Vision statement developed first
Short preferably one sentence
Broad management involvement

Ch. 2-6
2001 Prentice Hall

Vision

Clear Business
Vision
Comprehensive
Mission Statement

Copyright 2011
Pearson Education, Inc.

Ch 2 -7

Example
VISION STATEMENT OF UPM
The vision of Universiti Putra Malaysia
(UPM) is to become a world class
university, an internationally reputable
community of intellectuals who will make
the nation proud for their contributions to
scholarly writing and discoveries, and
continue to give new meaning to the
progress, growth and development of the
nation and the world.
Ch. 2-8
2001 Prentice Hall

Vision Statement Examples

Our vision is to be the worlds

best quick service restaurant.
(McDonalds)

Ch 2 -9

Vision & Mission (Contd)

Mission statement answers the
question:
What is our business?

Reveals:
what the organization wants to
be
whom we want to serve
Ch. 2-10
2001 Prentice Hall

Mission Statements
Mission Statements
Essential for effectively establishing
objectives and formulating strategies.
It sets the foundation for priorities,
strategies, plans and work
assignments.
Ch. 2-11
2001 Prentice Hall

Examples
Mission of UPM:
"The University's mission is to be a leading
Centre of Learning and Research,
contributing not only towards human
advancement
and
discovery
of
knowledge
but
also to the creation of wealth and nation
building.

Ch. 2-12
2001 Prentice Hall

Vision & Mission

Many companies develop both

Shared vision can motivate
employees
Develops a commonality of interests
Helps focus on opportunity &
challenge
Ch. 2-13
2001 Prentice Hall

Importance of Mission
Benefits from a strong mission
Unanimity of Purpose

Resource Allocation

Mission
Organizational Climate
Focal point for work
structure

Ch. 2-14
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. 2-15
2001 Prentice Hall

Customers

Employees

Public
Image

Products
Services

Markets

9 Components
Of Mission
Statement

Technology

Survival
Growth
Profit
Self-Concept

Philosophy

Ch. 2-16
2001 Prentice Hall

Components of Mission
(Contd)

Components of mission and

corresponding questions to be
answered:
1. Customers:
Who are the firms customers?

2. Products or services:
What are the firm's major products or
services?
Ch. 2-17
2001 Prentice Hall

Components of Mission
(Contd)

3. Markets:
Geographically, where does the
firm compete?

4. Technology:
Is the firm technologically current?
Ch. 2-18
2001 Prentice Hall

Components of Mission
(Contd)

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?
Ch. 2-19
2001 Prentice Hall

Components of Mission
(Contd)

7. Self-concept:
What is the firms 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?
Ch. 2-20
2001 Prentice Hall