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Copyright 2011 Pearson Education, Inc.Publishing as Prentice Hall

Ch 2 -1

Chapter 2 The Business Vision & Mission

Strategic Management:Concepts & Cases

13 th EditionFred David


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Ch 2 -2


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Ch 2 -3

The last thing IBM needs right now is avision. (July 1993)

Vision

What IBM needs most right now is avision. (March 1996)

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


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Ch 2 -4

Vision

Agreement on the basic vision for which thefirm strives to achieve in the long term isespecially important.


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Ch 2 -5

What do we want to become?

Vision


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Ch 2 -6

Vision Statement Examples

Tyson Foods vision is to be the

worlds first choice for proteinsolutions while maximizingshareholder value.


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Ch 2 -7

General Motors vision is to be theworld leader in transportationproducts and related services.



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Ch 2 -8

PepsiCos responsibility is to

continually improve all aspects of theworld in which we operate environment, social, economic creating a better tomorrow than today.



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Ch 2 -9

Dells vision is to create a company culturewhere environmental excellence is secondnature.



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Ch 2 -10

ComprehensiveMission Statement

Vision

Clear BusinessVision


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Ch 2 -11

Answers the question:What is our business?

Reveals:what the organization wants to bewhom we want to serve

Mission Statement


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Ch 2 -12

An enduring statement of purposethat distinguishes one organization

from other similar enterprises A declaration of an organizationsreason for being

Mission Statement


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Ch 2 -13

Mission Statements are also called

Creed statementStatement of purpose

Statement of philosophyStatement of beliefsStatement of business principles

A statement defining our business


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Ch 2 -14

Fleetwood Enterprises will lead the recreationalvehicle and manufactured housing industries inproviding quality products with a passion forcustomer-driven innovation. We will emphasizetraining, embrace diversity and provide growth

opportunities for our associates and our dealers. Wewill lead our industry in the application of appropriatetechnologies. We will operate at the highest levels ofethics and compliance with a focus on exemplarycorporate governance. We will deliver value to our

shareholders, positive operating results and industry-leading earnings.

Mission Statement Examples


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Ch 2 -15

We aspire to make PepsiCo the worldspremier consumer products company, focusedon convenient foods and beverages. We seekto produce healthy financial rewards forinvestors as we provide opportunities forgrowth and enrichment to our employees, ourbusiness partners and the communities inwhich we operate. And in everything we do, westrive to act with honesty, openness, fairnessand integrity.



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Ch 2 -16

Dells mission is to be the most successfulcomputer company in the world at deliveringthe best customer experience in markets we

serve. In doing so, Dell will meet consumerexpectations of highest quality; leadingtechnology; competitive pricing; individualand company accountability; best-in-classservice and support; flexible customizationcapability; superior corporate citizenship;financial stability.



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Ch 2 -17

Proctor & Gamble will provide brandedproducts and services of superior qualityand value that improve the lives of the

worlds consumers. As a result, consumerswill reward us with industry leadership insales, profit, and value creation, allowingour people, our shareholders, and thecommunities in which we live and work toprosper.



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Ch 2 -18

At LOreal, we believe that lastingbusiness success is built upon ethicalstandards which guide growth and ona genuine sense of responsibility toour employees, our consumers, ourenvironment and to the communities in

which we operate.



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Ch 2 -19

Vision & Mission

Great benefits can be achieved ifan organization

Systematically revisits their vision andmission statementTreats them as living documents

Considers them to be an integral partof the firms culture


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Ch 2 -20

Vision & Mission

Profit & vision are necessary toeffectively motivate a workforce


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Ch 2 -22

Developing Vision & Mission

A clear mission is needed beforealternative strategies can beformulated and implemented


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Ch 2 -23

Developing Vision & Mission

Participation by as many managers aspossible is important in developing themission because through involvementpeople become committed to anorganization


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Ch 2 -24

Steps to Developing Vision &Mission Statements1. Have managers read related articles2. Have managers prepare a vision and

mission statement for the organization3. Merge the documents into one and

distribute

4. Gather feedback from managers5. Meet to revise the final document


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Ch 2 -25

Benefits of Mission Statements

Better financial resultsUnanimity of purposeResource allocationEstablishment of cultureFocal point for individualsEstablishment of work structureBasis of assessment and controlResolution of divergent views


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Ch 2 -27

Resolution of Divergent Views

A genuine decision must be based ondivergent views to have a chance to bea right and effective decision

Considerable disagreement over vision

and mission statements can causetrouble if not resolved


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Ch 2 -28

Vision & Mission Statements

Provide unity of directionPromote shared expectations

Consolidate valuesProject a sense of worth and intent

Affirm the companys commitmentto responsible action


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Ch 2 -29

Broad in scope

Generate strategic alternatives

Not overly specific

Reconciles interests amongdiverse stakeholders

Finely balanced between

specificity & generality

Declaration ofAttitude


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Ch 2 -30

Arouse positive feelings &emotions

Motivate readers to action

Generate favorable impressionof the firm



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Ch 2 -31

Reflect future growth

Provide criteria for strategy

selection

Basis for generating &evaluating strategic options

Dynamic in nature



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Ch 2 -32

Define what the organization isDefine what it aspires to be

Limited to exclude some venturesBroad enough to allow for growthDistinguishes firm from all others

Framework for evaluating activitiesStated clearly understood by all

Mission & CustomerOrientation Vern McGinnis


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Ch 2 -33

Mission & Customer Orientation

An effective mission statement: Anticipates customer needs

Identifies customer needsProvides product/service to satisfyneeds

Identifies the utility of a firms productsto its customers


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Ch 2 -34

Utility of Firms Products to Customers

Do not offer me things .Do not offer me clothes . Offer me attractivelooks.

Do not offer me shoes . Offer me comfort for myfeet and the pleasure of walking.Do not offer me a house . Offer me security,comfort, and a place that is clean and happy.

Do not offer me books . Offer me hours ofpleasure and the benefit of knowledge.


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Ch 2 -35

Utility of Firms Products to Customers

Do not offer me CDs . Offer me leisure and thesound of music.Do not offer me tools . Offer me the benefits and

the pleasure that come from making beautifulthings.Do not offer me furniture . Offer me comfort andthe quietness of a cozy place.

Do not offer me things . Offer me ideas,emotions, ambience, feelings, and benefits.Please, do not offer me THINGS .


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Ch 2 -36

Mission

Components

CustomersMarkets

Employees

PublicImageSelf-Concept Philosophy

Survival,Growth,Profits

Products orServices

Technology


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Ch 2 -37


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Copyright 2011 Pearson Education, Inc.P bli hi P i H ll

Ch 2 -38

All rights reserved. No part of this publication may be reproduced, stored in aretrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written

permission of the publisher. Printed in the United States of America.

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