Chapter 2

The Business Vision & Mission

Strategic Management:
Concepts & Cases

Course coordinator
Prof. Begum Khaleda Khanam
Ch 2 -1

Ch 2 -2

Chapter Outline
Importance of Vision and Mission Statements

Characteristics of a mission statement

Components of a mission statement

Ch 2 -3

Vision

The last thing IBM needs right now is a

vision. (July 1993)

What IBM needs most right now is a

vision. (March 1996)
-- Louis V. Gerstner, Jr., CEO, IBM Corporation
Ch 2 -4

Vision
Agreement on the basic vision for which the
firm strives to achieve in the long run is
critically important to the firms success.

What do we want to become?

Ch 2 -5

Vision

Clear Business
Vision
Comprehensive
Mission Statement

Ch 2 -6

Vision Statement Examples

To make people happy

.World Disney

Ch 2 -7

Mission Statements
-- 90% of all companies have used a
mission statement in the previous five
years

What is our business?

Ch 2 -8

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

Importance

Enduring statement of purpose

Distinguishes one firm from another
Declares the firms reason for being

Ch 2 -9

Mission Statements

Also referred to as:

Statement of purpose
Statement of philosophy
Statement of business principles
Ch 2 -10

Mission Statements
Essential for effectively establishing
objectives and formulating strategies

Example
It is the California Energy Commissions mission to assess,
advocate, and act through public/private partnerships to improve
energy systems that promote a strong economy and healthy
environment.
-- California Energy Commission
Ch 2 -11

Vision & Mission

Many organizations develop both vision &

mission statements

Ch 2 -12

Developing Vision & Mission

Profit & vision are necessary to effectively motivate a

workforce
Clear mission is needed before alternative strategies can
be formulated and implemented
Participation from diverse managers is important in
developing the mission

Ch 2 -13

Importance of Mission
Benefits from a strong mission
Unanimity of Purpose

Resource Allocation

Mission
Organizational Climate
Focal point for work
structure
Ch 2 -14

Effective Missions

Arouse
Arousepositive
positivefeelings
feelings&&
emotions
emotions

Motivate
Motivatereaders
readersto
toaction
action

Generate
Generatefavorable
favorable
impression
impressionof
ofthe
thefirm
firm

Ch 2 -15

Effective Missions

Reflect
Reflectfuture
futuregrowth
growth

Provide
Providecriteria
criteriafor
forstrategy
strategy
selection
selection

Basis
Basisfor
forgenerating
generating&&
evaluating
evaluatingstrategic
strategicoptions
options

Are
Aredynamic
dynamicin
innature
nature

Ch 2 -16

Customers

Products
Services

Markets

Technology
Employees

Public
Image

Mission
Components
Survival
Growth
Profit
Self-Concept

Philosophy

Ch 2 -17