The Business Mission

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The Business Mission

• Strategic Management
• Professor Sayed Elsayed-Elkhouly

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Vision Mission

• Vision is the art of seeing things invisible
• -- Jonathan Swift
• The very essence of leadership is that you have
  to have vision. You cant blow an uncertain
  trumpet.
• -- Theodore Hesburgh

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Vision

• Management and executive agreement on the basic
  vision for which the firm strives to achieve in
  the long run is critically important.

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Vision

• Vision statement answers the question
• What do we want to become?

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Vision

• Clear vision
• Provides foundation for comprehensive mission
  statement

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Vision Mission

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

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Vision Statements

• The Vision of the National Pawnbrokers
  Association is to have complete and vibrant
  membership that enjoys a positive public and
  political image and is the focal organization of
  all pawn associations.
• --National Pawnbrokers Association

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Vision Statements

• The Bellevue Hospital is the LEADER in providing
  resources necessary to realize the communitys
  highest level of HEALTH throughout life.
• --The Bellevue Hospital

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Vision Statements

• To be the first choice in the printed
  communications business. The first choice is the
  best choice, and being the best is what Atlanta
  Web pledges to work hard at being - every day!
• --Atlanta Web Printers, Inc.

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Vision Statements

• It is the vision of the California Energy
  Commission for Californians to have energy
  choices that are affordable, reliable, diverse,
  safe, and environmentally acceptable.
• --California Energy Commission

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Mission Statements

• Recent Data indicate that
• 90 of all companies have used a mission
  statement sometime in the previous five years.

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Mission Statements

• Mission statement answers the question
• What is our business?

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Mission Statements

• Mission Statement
• Enduring statement of purpose
• Distinguishes one organization from another in
  similar enterprises
• Declaration of an organizations reason for
  being

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Mission Statements

• Mission Statements also referred to as
• Creed statement
• Statement of purpose
• Statement of philosophy
• Statement of business principles

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Mission Statements

• Mission Statements
• Reveal what an organization wants to be and whom
  it wants to serve

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Mission Statements

• Mission Statements
• Essential for effectively establishing objectives
  and formulating strategies

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Vision and Mission

• Many organizations develop both vision and
  mission statements
• Profit and vision are necessary to effectively
  motivate a workforce
• Shared vision creates a commonality of interests

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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

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Mission Statements

• Mission Statement
• The Bellevue Hospital, with respect, compassion,
  integrity, and courage, honors the individuality
  and confidentiality of our patients, employees,
  and community, and is progressive in anticipating
  and providing future health care services.

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Mission Statements

• The Mission of USGS is to serve the Nation by
  providing reliable scientific information to
• Describe and understand the Earth
• Minimize loss of life and property from natural
  disasters
• Manage water, biological, energy, and mineral
  resources and enhance and protect our quality of
  life.

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Mission Statements

• It is the California Energy Commissions mission
  to assess, advocate, and act through improve
  energy systems that promote a strong economy and
  a healthy environment.

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Importance of Mission

• Unanimity of purpose within the organization
• Basis for allocating resources
• Establish organizational climate
• Focal point for direction
• Translate objectives into work structure
• Cost, time and performance parameters assessed
  and controlled

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Mission Characteristics

• Effective mission statements
• Broad in scope
• Generate range of feasible strategic alternatives
• Not excessively specific
• Reconcile interests among diverse stakeholders
• Finely balanced between specificity generality

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Mission Characteristics

• Effective mission statements
• Arouse positive feelings and emotions
• Motivate readers to action
• Generate the impression that firm is successful,
  has direction, and is worthy of time, support,
  and investment

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Mission Characteristics

• Effective mission statements
• Reflect judgments re future growth
• Provide criteria for selecting strategies
• Basis for generating screening strategic
  options
• Are dynamic in orientation

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Customer Orientation

• According to Vern McGinnis, mission should
• Define what the organization is
• Define what the organization aspires to be
• Limited to exclude some ventures
• Broad enough to allow for creative growth
• Distinguish the firm from all others
• Serve as framework to evaluate current activities
• Stated clearly so that it is understood by all

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Customer Orientation

• A good mission statement reflects the
  anticipations of customers.
• Identify customer needs
• Provide product/service to satisfy needs
• ATTs mission focuses on communications, not
  telephones
• Exxons mission focuses on energy, not on oil and
  gas

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Social Policy Mission

• Managerial philosophy and thinking at the highest
  levels in the organization reflect social policy.
• Affects development of vision mission
• Responsibilities to consumers, environmentalists,
  minorities, communities, other groups

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Social Policy Mission

• Social policy should be integrated in all
  strategic-management activities.
• Mission statement is an effective instrument for
  conveying the social responsibility of the firm.

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Components of Mission

• Mission statements vary in
• Length
• Content
• Format
• Specificity
• Must include the 9 elements, as the mission
  statement is the most public and visible part of
  the strategic-management process.

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Mission Components

1. Customers
2. Products or services
3. Markets
4. Technology
5. Survival, growth, and profitability
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees

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Components of Mission

• Components of mission and corresponding questions
  to be answered
• Customers
• Who are the firms customers?
• Products or services
• What are the firm's major products or services?

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Components of Mission

• Markets
• Geographically, where does the firm compete?
• Technology
• Is the firm technologically current?

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Components of Mission

• Concern for survival, growth, and profitability
  
• Is the firm committed to growth and financial
  soundness?
• Philosophy
• What are the basic beliefs, values, aspirations,
  and ethical priorities of the firm?

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Components of Mission

• Self-concept
• What is the firms distinctive competence or
  major competitive advantage?
• Concern for public image
• Is the firm responsive to social, community, and
  environmental concerns?
• Concern for employees
• Are employees a valuable asset of the firm?

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Importance of Vision Mission

• Although research results are mixed, firms with
  formal mission statements
• 2X average return on shareholders equity
• Positive relationship to organizational
  performance
• 30 higher return on certain financial measures

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PepsiCo Mission Statement

• PepsiCos mission is to increase the value of our
  shareholders 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 providing a fair
  return to our investors while adhering to the
  highest standards of integrity.

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Ben Jerrys Mission Statement

• 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 products. 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 of society by initiating
  innovative ways to improve the quality of life of
  a broad communitylocal, national and
  international.

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Evaluation Matrix of Mission Statements
COMPONENTS          
Organization Customers Products Services Markets Concern for Survival, Growth, Profitability Technology
           
PepsiCo Yes No No Yes No
Ben Jerry's No Yes Yes Yes No
           
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Evaluation Matrix of Mission Statements
COMPONENTS              
Organization Philosophy Self-Concept Concern for Public Image Concern for Public Image Concern for Employees Concern for Employees
             
PepsiCo Yes No No No No No
Ben Jerry's No Yes Yes Yes Yes Yes
             
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Key Terms Concepts

• Concern for Employees
• Concern for Public Image
• Concern for Survival, Growth, and Profitability
• Creed Statement

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Key Terms Concepts

• Customers
• Markets
• Mission Statement Components
• Philosophy

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Key Terms Concepts

• Self-Concept
• Social Policy
• Stakeholders
• Vision Statement