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Questions and Answers
A clear mission statement is not essential for achieving clarity of purpose among managers and employees.
A clear mission statement is not essential for achieving clarity of purpose among managers and employees.
False
The process of developing vision and mission statements involves solely top management without input from other managers.
The process of developing vision and mission statements involves solely top management without input from other managers.
False
Distinctive competence refers to a firm's major competitive disadvantage.
Distinctive competence refers to a firm's major competitive disadvantage.
False
Employees are considered a valuable asset by firms that prioritize their ethical values.
Employees are considered a valuable asset by firms that prioritize their ethical values.
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Establishing objectives is not influenced by having a clear mission and vision statement.
Establishing objectives is not influenced by having a clear mission and vision statement.
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Synergy among all managers and employees is one of the benefits of a clear mission and vision.
Synergy among all managers and employees is one of the benefits of a clear mission and vision.
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A public image of a firm includes responsiveness to social and environmental concerns.
A public image of a firm includes responsiveness to social and environmental concerns.
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Choosing among alternative strategies does not require guidance from a clearly defined mission and vision.
Choosing among alternative strategies does not require guidance from a clearly defined mission and vision.
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A mission statement should express concrete ends for the organization.
A mission statement should express concrete ends for the organization.
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Mission statements can include components such as concern for public image and employees.
Mission statements can include components such as concern for public image and employees.
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The number of words in a mission statement is ideally over 150 to ensure thoroughness.
The number of words in a mission statement is ideally over 150 to ensure thoroughness.
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An effective mission statement is designed to rally opposition among stakeholders.
An effective mission statement is designed to rally opposition among stakeholders.
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An enduring mission statement can adapt to changing conditions while remaining relevant.
An enduring mission statement can adapt to changing conditions while remaining relevant.
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Firms should focus on offering products rather than the benefits and experiences those products provide.
Firms should focus on offering products rather than the benefits and experiences those products provide.
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A mission statement includes components related to technology and the firm's commitment to profitability.
A mission statement includes components related to technology and the firm's commitment to profitability.
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A mission statement that reveals a firm’s environmental responsibility is considered less impactful.
A mission statement that reveals a firm’s environmental responsibility is considered less impactful.
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A core values statement outlines a firm's commitment to integrity, fairness, and equality.
A core values statement outlines a firm's commitment to integrity, fairness, and equality.
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Vision statements should typically be lengthy and complicated to capture the essence of a business.
Vision statements should typically be lengthy and complicated to capture the essence of a business.
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The role of a mission statement is to define what the organization wants to achieve in the long term.
The role of a mission statement is to define what the organization wants to achieve in the long term.
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It is unnecessary for managers to have input in developing a vision statement.
It is unnecessary for managers to have input in developing a vision statement.
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Core values statements are irrelevant in strategic management.
Core values statements are irrelevant in strategic management.
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The characteristics of an effective mission statement are crucial for a firm's strategic planning.
The characteristics of an effective mission statement are crucial for a firm's strategic planning.
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The main question a vision statement should answer is 'What do we want to become?'
The main question a vision statement should answer is 'What do we want to become?'
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Mission statements are defined exclusively by the top management of a firm.
Mission statements are defined exclusively by the top management of a firm.
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Hershey's mission statement includes a commitment to robotics and business analytics.
Hershey's mission statement includes a commitment to robotics and business analytics.
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Rite Aid's mission statement lacks a focus on customer safety.
Rite Aid's mission statement lacks a focus on customer safety.
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United Parcel Service (UPS) aims to be the most dependable delivery service globally.
United Parcel Service (UPS) aims to be the most dependable delivery service globally.
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The Hershey proposed mission statement is 73 words long.
The Hershey proposed mission statement is 73 words long.
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Rite Aid considers its pharmacists as a key part of their drugstore experience.
Rite Aid considers its pharmacists as a key part of their drugstore experience.
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The number of words in the exemplary mission statement for UPS is 88.
The number of words in the exemplary mission statement for UPS is 88.
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Hershey's mission statement serves customers of various ages and lifestyles.
Hershey's mission statement serves customers of various ages and lifestyles.
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The mission statements reviewed focus solely on profit maximization.
The mission statements reviewed focus solely on profit maximization.
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A mission statement typically includes specific monetary amounts and ratios.
A mission statement typically includes specific monetary amounts and ratios.
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Starbucks aims to be the premier purveyor of the finest coffee in the world.
Starbucks aims to be the premier purveyor of the finest coffee in the world.
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A mission statement reveals what an organization wants to be and also identifies its target audience.
A mission statement reveals what an organization wants to be and also identifies its target audience.
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The mission statement is synonymous with a statement of financial performance.
The mission statement is synonymous with a statement of financial performance.
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Stakeholders in a mission statement can include only customers and employees.
Stakeholders in a mission statement can include only customers and employees.
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A good mission statement restricts management creativity by being overly specific.
A good mission statement restricts management creativity by being overly specific.
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Dr Pepper Snapple's vision statement emphasizes refreshment, fun, and flavor.
Dr Pepper Snapple's vision statement emphasizes refreshment, fun, and flavor.
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A mission statement is sometimes referred to as a statement of beliefs.
A mission statement is sometimes referred to as a statement of beliefs.
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Study Notes
Strategic Management Concepts: A Competitive Advantage Approach, Concepts and Cases
- Chapter 2: Business Vision and Mission
- Learning Objectives (1 of 2):
- Explain the need for core values statements in strategic management
- Describe the nature and role of vision statements in strategic management
- Identify the characteristics of a vision statement
- Describe the nature and role of mission statements in strategic management
- Identify and discuss the characteristics of an effective mission statement
- Learning Objectives (2 of 2):
- Identify the components of mission statements
- Discuss the benefits for a firm of having clear vision and mission statements
- Evaluate and write mission statements for different organizations
- Figure 2.1: A Comprehensive Strategic-Management Model. A diagram showing the relationship between different chapters in the textbook.
- Core Values Statement: A statement specifying a firm's commitment to integrity, fairness, discipline, equal opportunity, teamwork, accountability, continuous improvement, or similar attributes.
- Vision Statement: Answers the question "What do we want to become?". It should be short, one sentence, inspiring, and reveal the type of business.
- What Do We Want To Become?: Vision statements should be short, and many managers should participate in creating them. They should explicitly define the type of business.
- Vision Statement Examples:
- Dr Pepper Snapple: to be the best beverage business globally.
- Starbucks: to be the premier purveyor of the finest coffee in the world.
- Mission Statement (1 of 2):
- A declaration of an organization's reason for being.
- Answers the question "What is our business?".
- Essential for establishing objectives and formulating strategies.
- Short mission statements (less than 50 words) are preferred.
- Nine components in a good mission statement.
- Mission statements consider the utility or value of products.
- Mission Statement (2 of 2):
- Reveals what an organization wants to be and whom it wants to serve.
- Is also called a creed statement, a statement of purpose, a statement of philosophy, a statement of beliefs, and a statement of business principles.
- Characteristics of a Mission Statement (1 of 4):
- Flexible enough to allow for different strategies without being limiting.
- Broad enough to appeal to diverse stakeholders and reconcile stakeholder differences.
- Characteristics of a Mission Statement (2 of 4):
- Stakeholders include employees, managers, stockholders, directors, customers, suppliers, distributors, creditors, governments, unions, competitors, environmental groups and general public.
- Characteristics of a Mission Statement (3 of 4):
- Broad in scope, avoids monetary amounts, percentages, ratios, and objectives
- Should not be more than 150 words.
- Inspiring
- Explains the utility of products.
- Indicates social responsibility.
- Indicates environmental responsibility.
- Characteristics of a Mission Statement (4 of 4):
- Includes 9 components: customers, products/services, markets, technology, survival/growth/profits, philosophy, self-concept, public image, and employees.
- Should be reconciliatory between different concerns.
- Should be enduring
- Insight on Scope of Mission Statement:
- Mission statements are not intended to state specific goals.
- They are intended to provide motivation, direction, image, and a philosophy to guide the enterprise.
- Excessive detail may create opposition from within the organization.
- Considerations (1 of 2): Focusing on customer needs, not just products.
- Considerations (2 of 2): Focus on benefits, ideas, ambience, emotions, not just physical things.
- Mission Statement Components (1 of 2):
- Customers (Who are the customers)
- Products/Services (What are the firm's major products or services)
- Markets (Where does the firm compete geographically)
- Technology (Is the firm technologically current)
- Survival/Growth/Profitability (Is the firm committed to growth and financial soundness)
- Mission Statement Components (2 of 2):
- Philosophy (What are the firm's basic beliefs, values, aspirations, and ethical priorities)
- Distinctive Competence (What is the firm's major competitive advantage)
- Public Image (Is the firm responsive to social, community, and environmental concerns)
- Employees (Are employees a valuable asset of the firm)
- Importance of Vision and Mission Statements:
- Ensures all employees understand the firm's purpose.
- Provides a basis for prioritizing key internal and external factors used in formulating feasible strategies.
- Provides a basis for allocating resources and organizing work, departments, activities, and segments around a common purpose.
- Table 2.5 Ten Benefits of Having a Clear Mission and Vision.
- Achieve clarity of purpose among all managers and employees.
- Provide a basis for strategic planning.
- Providing direction.
- Promotes shared expectations.
- Projects worth and intent.
- Enhances organizational performance.
- Fosters synergy.
- Developing Vision and Mission Statements: A common approach for creating these statements involves seeking input from managers, merging statements into a single document, seeking feedback and revisions, and clarifying the finalized statements.
- Example Mission Statements: Hershey, proposed statement; Rite Aid; United Parcel Service (UPS)
- Examples of statements that lack some of the defined components are shown for comparison
- Figure 2.2: How to Gain and Sustain Competitive Advantages. Illustrates a circular process, starting with establishing a clear vision and mission, followed by gaining competitive advantages through identifying strategies and implementing those strategies while monitoring results for adjusting when necessary.
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Description
Test your understanding of Chapter 2 from 'Strategic Management Concepts'. This quiz covers the importance and characteristics of business vision and mission statements, their roles in strategic management, and the benefits of clear statements for organizations. Assess your knowledge on core values and effective mission statements.
