The Business Vision and Mission

STRATEGIC MANAGEMENT

Chapter 2

On Strategy Formulation

The Business Vision and Mission

The Vision Statement

“ What do we want to become?”

-           A strategist’s job is to see the company not as it is…. But as it can become.

-          A clear vision statement provides the foundation for developing a comprehensive mission statement.

-          It should be established first and foremost before the mission statement.

-          It should be short (preferably one sentence).

The Mission Statement

“What is our business?”

-          It defines the business.

-          An enduring statement of purpose that distinguishes one organization from other similar enterprises.

-          A declaration of an organization ‘reason for being’.

-          It is essential for effectively establishing objectives and for formulating strategies.

-          A declaration of attitude and outlook.

-          A customer orientation (customer satisfaction).

-          A declaration of social policy (social responsibility).

-          It should create emotional bond, sense of commitment, motivation.

-           It is also called the “creed statement”.

-          It can vary in length, content, format, and specificity.

The Vision Statement looks to the Future while the Mission Statement look at the Present.

Process in developing a Mission Statement

-          Select several articles about mission statements and ask all managers to read.

-          Assign a facilitator or committee to draft.

-          Do some modifications, additions/deletions.

-          Some use discussion groups or outside persons.

Mission Statement Components:

·         Customers – Who are the firms customer?

·         Products/Services – What are the firm’s major products or services?

·         Markets – Geographically, where does the firm compete?

·         Technology – Is the firm technologically current?

·         Concern for survival, growth and profitability – Is the firm committer to growth and financial soundness?

·         Philosophy –What are the basic beliefs, values, aspirations, and ethical priorities of the firm?

·         Self concept – What is the firm’s distinctive competency 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?