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1、Chapter 2The Business Vision & MissionStrategic Management: Concepts & Cases11th EditionFred DavidChapter OutlineWhat do we want to become?What is our business?Importance of Vision and Mission StatementsChapter Outline (contd)Characteristics of a mission statementComponents of a mission statementWri
2、ting & evaluating mission statementsVisionAgreement on the basic vision for which the firm strives to achieve in the long run is critically important to the firms success.“What do we want to become?VisionComprehensiveMission StatementVisionClear Business VisionShared Vision -Creates commonality of i
3、nterestsReduce daily monotonyProvides opportunity & challengeVision & Mission“What is our business?Mission StatementsMission StatementsEnduring statement of purposeDistinguishes one firm from anotherDeclares the firms reason for beingMission StatementsCreed statementStatement of purposeStatement of
4、philosophyStatement of business principlesAlso referred to as:Reveal what an organization wants to be and whom it wants to serveMission StatementsEssential for effectively establishing objectives and formulating strategiesVision & MissionMany organizations develop both vision & mission statementsVis
5、ion & MissionProfit & vision are necessary to effectively motivate a workforceVision & MissionShared vision creates a community of interestsDeveloping Vision & MissionClear mission is needed before alternative strategies can be formulated and implementedDeveloping Vision & MissionParticipation from
6、diverse managers is important in developing the missionImportance of MissionMissionResource AllocationUnanimity of PurposeOrganizational ClimateFocal point for work structureBenefits from a strong missionBroad in scopeGenerate strategic alternativesNot overly specificReconciles interests among diver
7、se stakeholdersFinely balanced between specificity & generalityEffective MissionsArouse positive feelings & emotionsMotivate readers to actionGenerate favorable impression of the firmEffective MissionsReflect future growthProvide criteria for strategy selectionBasis for generating & evaluating strat
8、egic optionsAre dynamic in natureEffective MissionsAnticipates customer needsIdentifies customer needsProvides product/service to satisfy needsMission & Customer OrientationAn Effective Mission Statement -Affects development of vision & missionResponsibilities to ConsumersEnvironmentalistsMinorities
9、CommunitiesSocial Policy & MissionManagerial philosophy shapes social policy -Social Policy & MissionSocial policy should be integrated in all strategic-management activitiesMission should convey the social responsibility of the firmMission StatementsFannie MaeProctor & GambleIntel CorporationSt. Pa
10、ul CompaniesGreen Mtn. CoffeeDeere & Company2005 Rated Best in Social ResponsibilityAvon Products, Inc.Hewlett-Packard Co.Agilent TechnologiesEcolab, Inc.Imation CorpIBM2x average return on shareholders equityPositive relationship to company performance30% higher return on certain financial measures
11、Vision & MissionResearch results are mixed, however, firms with formal mission statements generally see a:Mission ElementsCustomersMarketsEmployeesPublicImageSelf-ConceptPhilosophySurvivalGrowthProfitProductsServicesTechnologyPepsiCo Mission PepsiCos mission is to increase the value of our sharehold
12、ers 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
13、providing a fair return to our investors while adhering to the highest standards of integrity.Ben & Jerrys Mission Ben & Jerrys 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 produc
14、ts. 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
15、 of society by initiating innovative ways to improve the quality of life of a broad communitylocal, national and international.Mission Statement Evaluation MatrixCOMPONENTSOrganizationCustomersProducts ServicesMarketsConcern for Survival, Growth, ProfitabilityTechnologyPepsiCoYesNoNoYesNoBen & JerrysNoYesYesYesNoMission Statement Evaluation MatrixCOMPONENTSOrganizationPhilosophySelf-ConceptConcern for Public ImageConcern for EmployeesPepsiCoYesNoNoNoBen & JerrysNoYesYesYesKey Terms & ConceptsFor Review (Chapter 2)Conce
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