Business Vision and Mission Strategies PDF

Strategic Management Concepts: A ================================ Competitive Advantage Approach, Concepts and Cases ================================================== Seventeenth Edition, Global Edition Chapter 2 --------- Business Vision and Mission Learning Objectives (1 of 2) ==============...

Strategic Management Concepts: A ================================ Competitive Advantage Approach, Concepts and Cases ================================================== Seventeenth Edition, Global Edition Chapter 2 --------- Business Vision and Mission Learning Objectives (1 of 2) ============================ **2.1** Explain the need for core values statements in strategic management. **2.2** Describe the nature and role of vision statements in strategic management. **2.3** Identify the characteristics of a vision statement. **2.4** Describe the nature and role of mission statements in strategic management. **2.5** Identify and discuss the characteristics of an effective mission statement. Learning Objectives (2 of 2) ============================ **2.6** Identify the components of mission statements. **2.7** Discuss the benefits for a firm of having clear vision and mission statements. **2.8** Evaluate and write mission statements for different organizations. Figure 2.1 ========== A Comprehensive Strategic-Management Model *Source:* Fred R. David, "How Companies Define Their Mission," *Long Range Planning* 22, n o. 1 (February 1989): 91. See also Anik Ratnaningsih, Nadjadji Anwar, Patdono Suwignjo, and Putu Artama Wiguna, "Balance Scorecard of David's Strategic Modeling at Industrial Business for National Construction Contractor of Indonesia," *Journal of Mathematics and Technology*, n o. 4 (October 2010): 20. Core Values Statement ===================== A **core values statement** specifies a firm's commitment to integrity, fairness, discipline, equal employment opportunity, teamwork, accountability, continuous improvement, or other such exemplary attributes. Vision Statement ================ A **vision statement** should answer the basic question: "What do we want to become?" 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. Vision Statement Examples ========================= - **D r Pepper Snapple:** to be the best beverage business globally; our brands are synonymous with refreshment, fun, and flavor today and tomorrow. - **Starbucks:** to be the premier purveyor of the finest coffee in the world while maintaining uncompromising principles as we steadily grow. Mission Statement (1 of 2) ========================== - 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. Mission Statement (2 of 2) ========================== - 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 Statement (1 of 4) ================== - 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 Statement (2 of 4) ================== **Stakeholders** Statement (3 of 4) ================== 1. Broad in scope; does not include monetary amounts, numbers, percentages, ratios, or objectives 2. Fewer than 150 words in length 3. Inspiring 4. Identifies the utility of a firm's products 5. Reveals that the firm is socially responsible 6. Reveals that the firm is environmentally responsible Statement (4 of 4) ================== 7. Includes nine components: customers, products or services, markets, technology, concern for 8. Reconciliatory 9. Enduring Insight on Scope of Mission =========================== Statement ========= Mission statements are not designed to express concrete ends, but rather to provide motivation, general direction, an image, a tone, and a philosophy to guide the enterprise. An excess of detail could prove counterproductive since concrete specification could be the base for rallying opposition; all in the firm need to be onboard with the firm's mission. Considerations (1 of 2) ======================= - Do not offer me things. - Do not offer me clothes. Offer me attractive looks. - Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking. - Do not offer me a house. Offer me security, comfort, and a place that is clean and happy. - Do not offer me books. Offer me hours of pleasure and the benefit of knowledge. - Do not offer me C D s. Offer me leisure and the sound of music. Considerations (2 of 2) ======================= - Do not offer me tools. Offer me the benefits and the pleasure that come from making beautiful things. - Do not offer me furniture. Offer me comfort and the quietness of a cozy place. - Do not offer me things. Offer me ideas, emotions, ambience, feelings, and benefits. - Please, do not offer me **things**. Mission Statement Components ============================ ### (1 of 2) 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? Mission Statement Components ============================ ### (2 of 2) 6. **Philosophy**-What are the basic beliefs, values, aspirations, and ethical priorities of the firm? 7. **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? Importance of Vision and 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. Table 2.5 ========= Ten **Benefits of Having a Clear Mission and Vision** 1. Achieve clarity of purpose among all managers and employees. 2. Provide a basis for all other strategic planning activities, including internal and external assessment, establishing objectives, developing strategies, choosing among alternative strategies, devising policies, establishing organizational structure, allocating resources, and evaluating performance. 3. Provide direction. 4. Provide a focal point for all stakeholders of the firm. 5. Resolve divergent views among managers. 6. Promote a sense of shared expectations among all managers and employees. 7. Project a sense of worth and intent to all stakeholders. 8. Project an organized, motivated organization worthy of support. 9. Achieve higher organizational performance. 10\. Achieve synergy among all managers and employees. Developing Vision and 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. Example Mission Statements (1 of 2) =================================== **Hershey** - We bring sweet moments (2) of Hershey happiness (6) to the world (3) every day. - **Author comment: Statement lacks six components:** Example Mission Statements (2 of 2) =================================== **A Proposed Mission Statement for Hershey** - We aim to serve consumers of all ages and lifestyles (1) by providing high-quality chocolate, candy, and snack products (2) globally (3). We intend to grow and expand our product offerings (5) using robotics and business analytics (4). We are dedicated to supporting all communities where we operate (8), especially to the boys and girls in the Milton Hershey School (6). Through our friendly and well-trained employees (9), we provide consumers the best chocolate anywhere and wrapped in Hershey Happiness (7). - **73 words** Exemplary Proposed Mission ========================== Statement (1 of 2) ================== **Rite Aid** We are on a mission to offer the best possible drugstore experience for people of all ages (1) around the United States (3). We have a state-of-the-art information system (4) that provides our pharmacists (9) with warnings of any possible drug interactions to help ensure better customer safety (8). We are determined to improve our customers' overall health through our wellness programs (5). We offer an extensive line of other beauty, food, drink, cosmetic, and vitamin products through our alliance with G N C (2). We believe in treating our customers like family (6) and strive to maintain our reputation as the most personable drugstore (7). **(88 words )** Exemplary Proposed Mission ========================== Statement (2 of 2) ================== **United Parcel Service (U P S)** We strive to be the most timely and dependable parcel and freight forwarding delivery service (2) in the world (3). By implementing the latest tracking technology (4), we are able to profitably grow (5) by offering individuals and businesses (1) dependable and accurate delivery times (7). We promote from within to improve morale among all employees (9). Our philosophy (6) is to responsibly balance the needs of our customers, employees, shareholders, and communities (8) in an exemplary manner. **(68 words )** Figure 2.2 ========== How to Gain and Sustain Competitive Advantages