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Vision and Mission Analysis: Chapter Five

The document discusses vision and mission statements, including their nature, role, and development process. It provides examples of vision statements from General Motors and PepsiCo and evaluates them. The key components of effective mission statements are outlined, including customers, products/services, markets, technology, survival/growth/profits, philosophy, self-concept, public image, and employees. Characteristics of good mission statements are described. The document concludes by providing examples of mission statements and an exemplary proposed mission statement.

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Georges Chouchani
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321 views

Vision and Mission Analysis: Chapter Five

The document discusses vision and mission statements, including their nature, role, and development process. It provides examples of vision statements from General Motors and PepsiCo and evaluates them. The key components of effective mission statements are outlined, including customers, products/services, markets, technology, survival/growth/profits, philosophy, self-concept, public image, and employees. Characteristics of good mission statements are described. The document concludes by providing examples of mission statements and an exemplary proposed mission statement.

Uploaded by

Georges Chouchani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Vision and Mission

Analysis

Chapter Five

5-1
By the end of this session, you should be able to:

1. Describe the nature and role of vision and mission


statements in strategic management.
2. Discuss the process of developing a vision and
mission statement.
3. Describe the characteristics of a good mission
statement.
4. Identify the components of mission statements.
5. Evaluate mission statements of different
organizations and write effective vision and mission
statements.

5-2
Vision Statement

§ A vision statement should answer the basic question:

What do we want to become?

5-3
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.

§ The vision statement should reveal the type of


business the firm engages.

5-4
Vision Statement Examples

§ General Motors’ vision is TO BE THE WORLD LEADER IN


TRANSPORTATION PRODUCTS AND RELATED SERVICES.
§ (Author comment: Good statement)
§ PepsiCo’s responsibility is TO CONTINUALLY IMPROVE ALL
ASPECTS OF THE WORLD IN WHICH WE OPERATE—
ENVIRONMENT, SOCIAL, ECONOMIC—CREATING A BETTER
TOMORROW THAN TODAY.
§ (Author comment: Statement is too vague; it should reveal
how the firm’s food and beverage business benefits
people)

5-5
Mission Statement

§ A declaration of an organization's reason for being.


§ It answers the pivotal question

What is our business?

§ It is essential for effectively establishing objectives


and formulating strategies.

5-6
Mission Statement

§ It reveals what an organization wants to be and


whom it wants to serve

§ It is also called a creed statement, a statement of


purpose, a statement of philosophy, a statement of
beliefs, and a statement of business principles

5-7
Developing Vision & Mission Statements

A widely used approach includes:


§ 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.
§ A facilitator or committee of top managers should then
merge these statements into a single document and
distribute the draft statements to all managers.
§ A request for modifications, additions, and deletions is
needed next, along with a meeting to revise the
document.

5-8
Importance of Vision & Mission Statements

§ To make sure all employees/managers understand


the firm’s purpose or reason for being.
§ To provide a basis for prioritization of key internal
and external factors utilized to formulate feasible
strategies.
§ To provide a basis for the allocation of resources.
§ To provide a basis for organizing work, departments,
activities, and segments around a common purpose.

5-9
Benefits of Having a Clear Mission and Vision

5-10
Characteristics of a Mission Statement

§ Broad in scope; does not include monetary amounts,


numbers, percentages, ratios, or objectives
§ Fewer than 150 words in length
§ Inspiring
§ Identifies the utility of a firm’s products
§ Reveals that the firm is socially responsible
§ Reveals that the firm is environmentally responsible
§ Includes nine components: customers, products or services,
markets, technology, concern for survival/growth/profits,
philosophy, self-concept, concern for public image, concern
for employees
§ Reconciliatory
§ Enduring

5-11
Characteristics of a Mission Statement

§ A good mission statement allows for the generation


and consideration of a range of feasible alternative
objectives and strategies without unduly stifling
management creativity.

§ A mission statement needs to be broad to reconcile


differences effectively among, and appeal to, an
organization's diverse stakeholders.

5-12
Market oriented vs Product oriented mission

Company Product Market


XEROX We make copying We improve office
equipment productivity
Columbia Pictures We make movies We entertain people
Encyclopedia Britannica We sell encyclopedias We distribute information
Carrier We make air conditioners We provide climate control
and furnaces inside homes

Do you recommend a company to develop a product oriented mission


statement or a market oriented mission statement?
Go to USEK E-Learning platform and answer this assignment in e-learning
session 6.

5-13
Mission Statement Components

1. Customers—Who are the firm’s customers?


2. Products or services—What are the firm’s major
products or services?
3. Markets—Geographically, where does the firm
compete?
4. Technology—Is the firm technologically current?
5. Survival, growth, and profitability—Is the firm
committed to growth and financial soundness?

5-14
Mission Statement Components

6. Philosophy—What are the basic beliefs, values,


aspirations, and ethical priorities of the firm?
7. Self-concept (distinctive competence)—What is the
firm’s major competitive advantage?
8. Public image—Is the firm responsive to social,
community, and environmental concerns?
9. Employees—Are employees a valuable asset of the
firm?

5-15
§ We aspire to make PepsiCo the world’s (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).

§ Author comment: Statement lacks three components:


Example Customers (1), Technology (4), and Distinctive Competence (7);
62 words

Mission
Statements

5-16
§ We are loyal to Royal Caribbean and Celebrity and strive for
continuous improvement in everything we do. We always
provide service with a friendly greeting and a smile (7). We
anticipate the needs of our customers and make all efforts to
exceed our customers’ expectations. We take ownership of any
problem that is brought to our attention. We engage in conduct
that enhances our corporate reputation and employee morale
(9). We are committed to act in the highest ethical manner and
respect the rights and dignity of others (6).

Example § Author comment: Statement lacks six components: Customers


(1), Products/Services (2), Markets (3), Technology (4),
Mission Survival/Growth/Profits (5), and Public Image (8); 86 words

Statements

5-17
PROPOSED EXEMPLARY MISSION
§ Our mission is to provide women (1) quality fragrances,
cosmetics, and jewelry (2) at reasonable prices backed by
outstanding customer service provided by our thousands of
door-to-door sales representatives (7, 9) operating globally (3).
We use the latest technology (4) to profitably develop and
market products desired by women all over the world (5). Avon
representatives put integrity first (6) in setting a good example
in every community (8) they operate—as they sell beauty. (58
Exemplary words)

Proposed
Mission
Statement

5-18
PROPOSED EXEMPLARY MISSION
§ Our mission is to design, produce, and distribute the world’s
best fragrances, perfumes, and personal care products (2) to
women, men, and children (1) by utilizing the latest
technological improvements (4). We empower our highly
creative team of researchers to develop safe, eco-friendly (7)
products that will enable our firm to profitably grow (5)
through thousands of retail outlets. We strive to be one of the
most socially responsible (8) firms on the planet (3) and
Exemplary appreciate our employees (9) making that happen, while
following the “golden rule” in all that we do (6). (85 words)

Proposed
Mission
Statement

5-19

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