The Business

Vision
and Mission

Chapter Two

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 What Do We Want to Become?

 A vision statement should answer the

basic question, “What do we want to
become?”

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 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.
 A clear vision provides the foundation for
developing a comprehensive mission statement
 Many organizations have both a vision and
mission statement

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 Examples

Hawassa University aspires to be the best University in

the nation, competent in Africa and internationally
accredited by 2017/18 e.c.
General Motors’ vision is to be the world leader in
transportation products and related services.
Tyson Foods’ vision is to be the world’s first choice for
protein solutions while maximizing shareholder value

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 What Is Our Business?
 Mission statement
 Answers the pivotal question “what is our business?”
 A declaration of an organization’s “reason for being.”
 An enduring statement of purpose
 Distinguishing our organization from others.
 Essential for effectively establishing objectives and
formulating strategies
 Reveals what an organization wants to be and whom
it wants to serve
 A Mission Statement is the first element determined
in a comprehensive strategic management model.

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 Names associated with Mission
Statements:

 Statement of philosophy
 Statement of purpose
 Vision statement
 Statement of business principles
Statement of belief
Statement of beliefs
Statement “defining our business,

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 Importance
Mission Statements

1. To ensure agreement of purpose within the organization

2. To provide a basis, or standard, for allocating
organizational resources
3. Resolve divergent views among managers.
4. To serve as a focal point for individuals to identify with
the organization’s purpose and direction
5. To facilitate the translation of objectives into a work
structure
6. Provide direction
7. To specify organizational purposes

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 Characteristics of a Mission Statement

 First, a good mission statement allows for the

generation and consideration of feasible alternative
objectives and strategies
 Second, a mission statement needs to be broad to
reconcile differences effectively among an
organization’s diverse stakeholders
 Stakeholders
 employees, managers, stockholders, boards of
directors, customers, suppliers, distributors,
creditors, governments (local, state, federal, and
foreign), unions, competitors, environmental groups,
and the general public
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 Characteristics of a
Mission Statement

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 Products
Services Markets
Customers

Technology

Employees
Mission
Elements

Survival
Growth
Profit
Public
Image
Self-Concept Philosophy
 Mission Statement Components

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. Concern for survival, growth, and profitability
 Is the firm committed to growth and financial
soundness?

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 Mission Statement Components

5. Philosophy—What are the basic beliefs, values,

aspirations, and ethical priorities of the firm?
6. Self-concept—What is the firm’s distinctive
competence or major competitive advantage?
8. Concern for public image—Is the firm
responsive to social, community, and
environmental concerns?
9. Concern for employees—Are employees a
valuable asset of the firm?

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 Examples
 Customer:
We believe our first responsibility is to the doctors, nurses,
patients, mothers, and all others who use our products and
services.(Johnson & Johnson)
 Product: AMAX’s principal products are coal, iron ore, copper,
lead, zinc, petroleum and natural gas , silver, gold, and
magnesium. (AMAX Engineering Company)
 Market: We are dedicated to the total success of Corning Glass
Works as a worldwide competitor. (Corning Glass Works)
 Technology: We will continually strive to meet the
preferences of adult smokers by developing technologies
that have the potential to reduce the health risks associated
with smoking. (RJ Reynolds)
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  Concern for Survival, Growth, and Profitability
To serve the worldwide need for knowledge at a fair profit by
adhering, evaluating, producing, and distributing valuable
information in a way that benefits our customers,
employees, other investors, and our society. (McGraw-Hill)
 Philosophy
Our world-class leadership is dedicated to a management
philosophy that holds people above profits. (Kellogg)
 Self-Concept
We believe our commercial success depends upon offering
quality and value to our consumers and customers(pepsi co)

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  Concern for Public Image
To contribute to the economic strength of society and
function as a good corporate citizen on a local, state, and
national basis in all countries in which we do business.
(Pfizer)
 Concern for Employees
To compensate its employees with remuneration and fringe
benefits competitive with other employment
opportunities in its geographical area and commensurate
with their contribution toward efficient corporate
operations. (Public Service Electric & Gas Company)

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 PepsiCo Mission

PepsiCo’s mission is to increase the value of our

shareholders’ investment. We do this through sales
growth, cost controls, and wise investment resources.
We believe our commercial success depends upon
offering quality and value to our consumers and
customers; providing products that are safe,
wholesome, economically efficient and environmentally
sound; and providing a fair return to our investors
while adhering to the highest standards of integrity.

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 Ben & Jerry’s Mission

Ben & Jerry’s mission is to make, distribute and sell

the finest quality all-natural ice cream and related
products in a wide variety of innovative flavors made
from Vermont dairy products. To operate the
Company on a sound financial basis of profitable
growth, increasing value for our shareholders, and
creating career opportunities and financial rewards for
our employees. To operate the Company in a way
that actively recognizes the central role that business
plays in the structure of society by initiating innovative
ways to improve the quality of life of a broad
community—local, national and international.

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 Mission Statement Evaluation Matrix

COMPONENTS          

Concern for
Survival,
Products Growth,
Organization Customers Services Markets Profitability Technology

           

PepsiCo Yes No No Yes No

Ben & Jerry's No Yes Yes Yes No

           

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 Mission Statement Evaluation Matrix

COMPONENTS          

Self- Concern for Concern for

Organization Philosophy Concept Public Image Employees

         

PepsiCo Yes No No No

Ben & Jerry's No Yes Yes Yes

         

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 Example Mission Statements
 Fleetwood Enterprises will lead the recreational vehicle
and manufactured housing industries (2, 7) in providing
quality products, with a passion for customer-driven
innovation (1). We will emphasize training, embrace
diversity and provide growth opportunities for our
associates and our dealers (9). We will lead our
industries in the application of appropriate technologies
(4). We will operate at the highest levels of ethics and
compliance with a focus on exemplary corporate
governance (6). We will deliver value to our
shareholders, positive operating results and industry-
leading earnings (5).

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 Example Mission Statements

 We aspire to make PepsiCo the world’s (3)

premier consumer products company, focused
on convenient foods and beverages (2). We
seek to produce healthy financial rewards for
investors (5) as we provide opportunities for
growth and enrichment to our employees (9),
our business partners and the communities (8)
in which we operate. And in everything we do,
we strive to act with honesty, openness,
fairness and integrity (6).

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 Example Mission Statements

 Dell’s mission is to be the most successful

computer company (2) in the world (3) at
delivering the best customer experience in
markets we serve (1). In doing so, Dell will meet
customer expectations of highest quality; leading
technology (4); competitive pricing; individual and
company accountability (6); best-in-class service
and support (7); flexible customization capability
(7); superior corporate citizenship (8); financial
stability (5).

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 Example Mission Statements

 Procter & Gamble will provide branded

products and services of superior quality and
value (7) that improve the lives of the world’s
(3) consumers. As a result, consumers (1) will
reward us with industry leadership in sales,
profit (5), and value creation, allowing our
people (9), our shareholders, and the
communities (8) in which we live and work to
prosper.

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 Example Mission Statements

 At L’Oreal, we believe that lasting business

success is built upon ethical (6) standards
which guide growth and on a genuine sense
of responsibility to our employees (9), our
consumers, our environment and to the
communities in which we operate (8).

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 UMFK Mission
The University of Maine at Fort Kent emphasizes environmental stewardship, Franco-American culture, and rural sustainability
through a liberal and professional education featuring experiential learning which fosters student success as responsible citizens,
dedicated professionals, and conscientious leaders.

Building upon its historical roots and distinguishing characteristics, the University of Maine at Fort Kent:
Was founded as the Madawaska Training School in 1878 to prepare bilingual teachers to serve the French-speaking people of
Northern Aroostook County
Is a small public institution offering quality baccalaureate and associate degree programs with a legacy of quality teaching
Is where education meets the great outdoor environment - situated in historic Fort Kent and nestled in the Saint John River Valley, at
the northern extent of the Appalachian Mountains and forests of New England, providing abundant resources for learning and
research opportunities, and joys of outdoor sports
Serves the educational needs of the St. John Valley, Aroostook County, State of Maine and responds to global trends
Prepares well-educated, independent thinkers to live in a diverse and global society
Talented and dedicated faculty and staff promote discovery and exploration of knowledge, life-long learning, and global citizenship
through effective teaching, service, and scholarship
Offers a curriculum that emphasizes special challenges of rural communities in America
Fosters an appreciation and stewardship of Northern Maine's pristine natural environment through the Environmental Studies,
Forestry, and Biology degree programs
Preserves, cultivates, and celebrates the Franco-American/Acadian culture in the St. John Valley and houses one of two Acadian
Archives/Archives acadiennes in the nation
Is the only institution in the United States located at the center of French culture of northern Maine, northern New Brunswick, and
Québec, offering opportunities for students of all ethnic and racial heritages to study and live in a bilingual community
Is a strong social, cultural, and economic driving force in the region and promotes rural sustainable development

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 Walt Disney Mission Statement?

The mission of The Walt Disney Company is to be

one of the world's leading producers and providers
of entertainment and information. Using our
portfolio of brands to differentiate our content,
services and consumer products, we seek to
develop the most creative, innovative and
profitable entertainment experiences and related
products in the world.

Source: http://thewaltdisneyco.blogspot.com/2011/09/chapter-1-brief-history-mission.html

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Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall