Strategy formulation:

vision and mission

Reference
David, F. R., & David, F. R. (2017).
Strategic management: concepts and
cases: A competitive advantage
approach. Pearson (Chapter 2)
Vision statement
It is especially important for managers and executives in any organization to
agree on the basic vision that the firm strives to achieve in the long term.

A clear vision Shared vision

A vision statement
Shared vision creates a
a clear vision provides the
commonality of interests
should answer the basic foundation for developing
that can lift workers out of
question, “What do we a comprehensive mission
the monotony of daily
want to become?” statement.
work and put them into a
new world of opportunity
and challenge.
 01 A single sentence
Vision statements are usually written in
one sentence. An example of the vision
Vision of an eye clinic: “Our vision is to take
care of your vision.”

statement 02 Customer/service users perspective

Although typically a single sentence,
vision statements need to be written from
a customer/service users perspective. For
example, eBay’s vision is “to provide a
At a minimum, a vision statement
global trading platform where practically
should reveal the type of business the anyone can trade practically anything.”
organization engages.

03 Vision statements need to do more than

identify the product/service an organization
offers

- “to make the automobile accessible to

every american,” (product-oriented).
- “to provide personal mobility for people
around the world.” (customer-oriented).
 Mission statement

Reason for being

The mission statement is a A mission statement is

declaration of an organization’s
“reason for being.” it answers ,... the foundation for priorities,
the pivotal question “What is strategies, plans, and work A clear mission statement
our business?” assignments. It is the starting
point for the design of jobs and A clear mission statement is
organizational structures. essential for effectively establishing
objectives and formulating
strategies.
 defines what the organization is and
Characteristics what it aspires to.
of a mission distinguishes certain organizations from
statement others.

serves as a framework for evaluating

current and future activities.

expressed in terms that are clear

enough to be widely understood by all
members of the organization.

A good mission statement identifies the

usefulness of the organization's
products/services for users of the
product/service (customer orientation,
not product orientation).
Characteristics 1. Broad in scope; does not include monetary amounts,
numbers, percentages, ratios, or objectives.
of a mission 2. Fewer than 150 words in length.
3. inspiring.
statement 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.
7. includes nine components: customers, products or
services, markets, technology, concern
for survival/growth/profits, philosophy, self-concept,
concern for public image, concern for employees.
8. reconciliatory.
9. enduring.
The process of developing
vision and mission

Involvement

As many managers as possible During the process of developing vision and mission statements, some
should be involved in the organizations use discussion groups of managers to develop and
process of developing these modify existing statements. Other organizations hire an outside
statements because, through consultant or facilitator to manage the process and help draft the
involvement, people become language. Decisions on how best to communicate the vision and
committed to an organization. mission to all managers, employees, and external constituencies of an
organization are needed when the documents are in final form.
Why do we need
clear visions and
missions?
01 02

to make sure all employees/ to provide a basis for prioritization of

managers understand the firm’s key internal and external factors
purpose or reason for being. utilized to formulate feasible
strategies.

03 04

to provide a basis for the allocation to provide a basis for organizing work,
of resources. departments, activities, and segments
around a common purpose.
Benefits of having a clear mission and vision
David & David (2017)
Mission Statement
Evaluation
DAVID & DAVID (2017)
Components of a mission statement
Example of mission statements from a customer perspective
Examples:
Mission Statements Critiqued
Examples
Mission
Statements
Revised
Exercise
F I N D EX AMPL ES OF ST RAT EG I C PL AN S OF MI N I ST RIES /AG EN CI ES OR
ORG AN I Z AT IONAL UN I TS UN DER MI N I STRIES/ AGENC IES.
EVALUAT E I T S V I S I ON AN D MI S S I ON STAT EMEN T S .