Chap 2 The Business Mission

Chapter Objectives
Describe the nature and role of vision and mission
statements in strategic management.

Discuss why the process of developing a mission
statement is as important as the resulting document.
Identify the components of mission statements.
Discuss how clear vision and mission statements can
benefit other strategic-management activities.
Evaluate mission statements of different organizations.
Write good vision and mission statements.
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Copyright 2013 Pearson Education
What we want to Become?

A vision statement should answer the basic question,
What do we want to become?

The vision statement should be short, preferably one
sentence, and as many managers as possible should have

input into developing the statement.
Eg. IJM Corporation Berhad Vision Statement:
To be an internationally competitive Malaysian builder
of world class infrastructure and buildings
2-3
Eg: UiTM Vision

Menjadikan UiTM sebagai universiti yang
unggul yang berteraskan kesarjanaan dan

kecemerlangan akademik bagu menerajui
dinamisme bumiputera dalam semua bidang
yang terdapat di UiTM menerusi program
professional bertaraf dunia supaya terlahir
graduan yang berdaya saing, global dan
beretika.
To establish UiTM as a premier university of
2-4
outstanding scholarship and academic

excellence capable of providing leadership to
Bumiputerass dynamic involvement in all
professional fields of world-class standards in
order to produce globally competitive
graduates of sound ethical standing.
Statement
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What Is Our Business?

Mission statement
a declaration of an organizations reason for being.
answers the pivotal question What is our business?
essential for effectively establishing objectives and
formulating strategies
Eg. IJM Corporation Berhad mission statement:
To deliver the highest standards of performance
in all our ventures with the IJM mark of
excellence
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Statement
reveals what an organization
wants to be and whom it wants

to serve
Also called a creed statement, a
statement
of
purpose,
a
statement of philosophy, a
statement of beliefs, and a
statement of business principles
2-7
Eg: UiTM Mission

Mempertingkatkan keilmuan dan kepakaran
bumiputera di UiTM dalam semua bidang menerusi
penyampaian program professional, penyelidikan
serta penglibatan aktiviti kemasyarakatan yang
berlandaskan kepada nilai-nilai murni dan etika
keprofesionalan.
To enhance the knowledge and expertise of
Bumiputeras in all fields of study through
professional programs, research work and
community service based on moral values and
professional ethics.
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A Comprehensive StrategicManagement Model
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Vision versus Mission

Shared vision would be able to:
Creates
a commonality of
interests
Reduce monotony of daily work
Provides
opportunity
and
challenge.
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Vision & Mission Statements :

The Process
A widely used approach to develop vision and mission
statement is to:
Select several articles about these statements and ask all
managers to read these as background information.
Ask managers themselves to prepare a vision and mission
statement for the organization.
Merge these statements into a single document and
distribute the draft statements to all managers
Process should create an emotional bond and sense of
mission between the organization and its employees
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Vision & Mission Statements :
1.
2.
3.
4.
5.
6.
To ensure unanimity of purpose within the organization

To provide a basis, or standard, for allocating organizational
resources
To establish a general tone or organizational climate
To serve as a focal point for individuals to identify with the
organizations purpose and direction
To facilitate the translation of objectives into a work
structure
To specify organizational purposes
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Benefits of Having a Clear

Mission and Vision
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3 Characteristics of a Mission
Statement
Declaration of Attitude : 2 reasons
A good mission statement allows for the generation and
consideration of a range of feasible (realistic) alternative
objectives and strategies without overly stifling (prevent)
management creativity.
A mission statement needs to be broad to effectively reconcile
differences among and appeal to an organizations diverse
stakeholders, the individuals and groups of persons who
have a special stake or claim on the company.
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Arouses positive feelings and emotions about an

organization, motivates reader to action. Must less than
200 words
Characteristics of a Mission
Statement
A Customer Orientation : identify the
customers needs and then to provide a product
or service to fulfill those needs
A mission statement should:
define what the organization is and what the organization aspires to be
be limited enough to exclude some ventures and broad enough to allow for
creative growth
distinguish a given organization from all others
serve as a framework for evaluating both current and prospective activities
be stated in terms sufficiently clear to be widely understood throughout the
organization
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Cont: A Customer Orientation

A good mission statement reflects the anticipations of customers.
The operating philosophy of organizations should be to identify
customers needs and then provide a product or service to fulfill those

needs.
2-16
Statement
A Declaration of Social Policy
Social policy embrace managerial philosophy and thinking at the
highest levels of an organization. For this reason, social policy affects

the development of a business mission statement.
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Mission Statement:
Components
1.
2.
3.
4.
CustomersWho are the firms

customers?
Products or servicesWhat
are the firms major products or
services?
MarketsGeographically, where
does the firm compete?
TechnologyIs
the
firm
technologically current?
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Mission Statement:
Components
Concern
for
survival,
growth, and profitabilityIs
the firm committed to growth
and financial soundness?
6. PhilosophyWhat are the basic
beliefs, values, aspirations, and
ethical priorities of the firm?
7. Self-conceptWhat
is
the
firms distinctive competence or
major competitive advantage?
5.
2-19
Mission Statement:
Components
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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Statement
2-21
Example:
Mission Statements
Fleetwood
Enterprises will lead the recreational vehicle and

manufactured housing industries (2, 7) in providing quality products,
with a passion for customer-driven innovation (1). We will emphasize
training, embrace diversity and provide growth opportunities for our
associates and our dealers (9). We will lead our industries in the
application of appropriate technologies (4). We will operate at the
highest levels of ethics and compliance with a focus on exemplary
corporate governance (6). We will deliver value to our shareholders,
positive operating results and industry-leading earnings (5).
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Example:
Mission Statements
We aspire to make PepsiCo the worlds (3) premier consumer products
company, focused on convenient foods and beverages (2). We seek to

produce healthy financial rewards for investors (5) as we provide
opportunities for growth and enrichment to our employees (9), our
business partners and the communities (8) in which we operate. And in
everything we do, we strive to act with honesty, openness, fairness and
integrity (6).
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Example:
Mission Statements
Dells mission is to be the most successful computer company (2) in the
world (3) at delivering the best customer experience in markets we serve

(1). In doing so, Dell will meet customer expectations of highest quality;
leading technology (4); competitive pricing; individual and company
accountability (6); best-in-class service and support (7); flexible
customization capability (7); superior corporate citizenship (8);
financial stability (5).
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Example:
Mission Statements
Procter & Gamble will provide branded products and services of
superior quality and value (7) that improve the lives of the worlds (3)
consumers. As a result, consumers (1) will reward us with industry
leadership in sales, profit (5), and value creation, allowing our people
(9), our shareholders, and the communities (8) in which we live and
work to prosper.
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Example:
Mission Statements
At LOreal, we believe that lasting business success is built upon ethical
(6) standards which guide growth and on a genuine sense of

responsibility to our employees (9), our consumers, our environment
and to the communities in which we operate (8).
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Chapter Objectives

Describe the nature and role of vision and mission

statements in strategic management.

What we want to Become?

What do we want to become?

sentence, and as many managers as possible should have

of world class infrastructure and buildings

Eg: UiTM Vision

unggul yang berteraskan kesarjanaan dan

outstanding scholarship and academic

Copyright 2013 Pearson Education

What Is Our Business?

wants to be and whom it wants

Eg: UiTM Mission

A Comprehensive StrategicManagement Model

Vision versus Mission

Vision & Mission Statements :

Vision & Mission Statements :

To ensure unanimity of purpose within the organization

Benefits of Having a Clear

Arouses positive feelings and emotions about an

Copyright 2013 Pearson Education

Cont: A Customer Orientation

customers needs and then provide a product or service to fulfill those

highest levels of an organization. For this reason, social policy affects

CustomersWho are the firms

Is the firm responsive to social,

Enterprises will lead the recreational vehicle and

company, focused on convenient foods and beverages (2). We seek to

world (3) at delivering the best customer experience in markets we serve

(6) standards which guide growth and on a genuine sense of

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