February 22, 2022

Chapter # 3

1st Stage of Strategic Management Process

Strategy Formulation:
Vision & Mission

 References
 Strategic Management Concepts & Cases by Fred R. David

Resource Person: Furqan-ul-haq Siddiqui

Strategy Formulation

 Vision & Mission

Opportunities & Threats

Strengths & Weaknesses

Long-Term Objectives

Alternative Strategies

Strategy Selection
Vision
 An aspirational statement of where the organization
desires to be in the future, the direction and ultimate
goal of the organization what it would achieve or
accomplish in the future. The vision statement
answers the question “Where do we want to go?”,
and as such, is purposively directional.
Vision
Vision statement answers the
question:

“What do we want to become?”

Your vision statement is your inspiration,

the framework for all your strategic
planning.
Why Have a Vision Statement?
 It gives direction to your
Business
 Allows you to live life with a
purpose.
 Creates a positive vision of
your future.
 Allows you to live life to the
fullest potential.
To be a model public To become an acclaimed
University providing and vibrant top institute
affordable, quality, higher serving the society through
education opportunities to excellence in management
develop the potentially rich education and research by
human resource in Balochistan providing cutting-edge
through knowledge-centered professional managers for
teaching and research while
public/private sectors with
maintaining and fostering a
high levels of ethical and high professional values,
professional standards and marketability and social
promoting national identity. responsibility.
  "GM’s vision is to be the world leader in
transportation products and related services.
We will earn our customers’ enthusiasm
through continuous improvement driven by
the integrity, teamwork, and innovation
of GM people."
 GM is among world’s largest automaker.
 Global sales leader for 77 consecutive calendar years from 1931 to 2007.
 It manufactures cars and trucks in 34 countries. GM employs 244,500 people
around the world, and sells and services vehicles in some 140 countries
 In late 2008 GM received loans from the American, Canadian, and Ontario
governments to avoid bankruptcy resulting from the late-2000s recession,
record oil prices, health care and retiree expenses, and heavy competition.
 General Motors filed for a government-assisted bankruptcy protection on June
1, 2009, in the federal court in, New York.
 The current company, General Motors Company LLC ("new GM"), was
formed in 2009 as a part of its 2009 bankruptcy restructuring
 Vision
 Our vision is to craft the brands
and choice of drinks that people
love, to refresh them in body &
spirit. And done in ways that
create a more sustainable
How many drinks does
business and better shared The Coca‑Cola
future that makes a difference Company sell worldwide
in people’s lives, communities each day?
and our planet. More than 1.9 billion
servings of our drinks
are enjoyed in more than
200 countries each day.
• Saudi Vision 2030 is a plan to reduce Saudi Arabia's dependence
on oil, diversify its economy, and develop public service sectors
such as health, education, infrastructure, recreation and tourism.
Goals include reinforcing economic and investment activities,
increasing non-oil industry trade between countries through goods
and consumer products, and increasing government spending on
the military, manufacturing equipment and ammunition.
• The first details were announced on 25 April 2016 by Crown
Prince Mohammad bin Salman.
 Mission Statements

“What is our business?”

An enduring statement that distinguishes one
organization from the similar enterprises.
Declares the firm’s reason for being

 A mission statement answers three key questions:

 What do we do?
 For whom do we do it?
 What is the benefit?
 Products
Services Markets
Customers

Technology

Employees
Mission Statement
Elements

Survival
Growth
Public Profit
Image Philosophy
Self-Concept

Anticipates customer needs

An Effective Mission Statement - Identifies customer needs
Provides product/service to satisfy needs
 Mission Statement vs. Vision Statement
 "G.M. is a multinational  "GM’s vision is to be
corporation engaged in the world leader in
socially responsible transportation products
operations, worldwide. It and related services.
is dedicated to provide We will earn our
products and services of customers’ enthusiasm
such quality that our through continuous
customers will receive
superior value while our improvement driven by
employees and business the integrity,
partners will share in our teamwork, and
success and our stock- innovation
holders will receive a of GM people."
sustained superior return
on their investment."
 Mission Statement vs. Vision Statement
 Our Mission- It declares  Our Vision- Our vision serves as the
framework for our Roadmap and guides
our purpose as a every aspect of our business by describing
what we need to accomplish in order to
company and serves as continue achieving sustainable, quality
the standard against 
growth.
People: Be a great place to work where
which we weigh our people are inspired to be the best they can
actions and decisions. 
be.
Portfolio: Bring to the world a portfolio of
 To refresh the world... quality beverage brands that anticipate and
satisfy people's desires and needs.
 To inspire moments of  Partners: Nurture a winning network of
customers and suppliers, together we
optimism and happiness... create mutual, enduring value.
 Planet: Be a responsible citizen that
 To create value and make makes a difference by helping build and
a difference. 
support sustainable communities.
Profit: Maximize long-term return to
shareowners while being mindful of our
overall responsibilities.
 Productivity: Be a highly effective, lean
and fast-moving organization.
Mission Statement vs. Vision Statement
 Functioning as a student-centric  To be a model public University
institution dedicated to academic providing affordable, quality,
excellence, tolerance and fairness. higher education opportunities
 Maintaining and fostering highest to develop the potentially rich
ethical and professional values human resource in Balochistan
while teaching students to seek through knowledge-centered
knowledge analytically, be creative, teaching and research while
communicate effectively and maintaining and fostering a
become technologically literate to high levels of ethical and
meet the emerging needs of our professional standards and
society within the global village. promoting national identity.
 Ensuring and supporting faculty
and staff to continue their
professional and intellectual
development
Importance of Mission

Benefits from a strong mission

Unanimity of Purpose

Resource Allocation
Mission
Organizational Climate

Focal point for work

structure
 Writing A Mission Statement
 Some researchers agree that it should be kept to between 30
and 60 words
 Some organizations have mission statements that are only
one sentence, while others are a paragraph.
 No universally followed guideline for writing mission
statement.
 At a minimum, each mission statement should answer the
following three questions:
1. What are the opportunities or needs the organization
addresses?
2. What does the organization do to address those needs? and
3. What principles and values guide the organization?
 Avoiding jargon will keep the mission statement clear and
easy to understand.
 It should be unique and identify the organization.
 A mission statement is often what sets one company apart
from the competition.
 It should outline the organization's competitive advantages
and differentiate it from everyone else.
 Specific products/services offered as well as markets or
customers should be included.
 Also a general business definition, behavioral standards,
and desired competitive position can be added to a strong
mission statement.
Vision Statement vs Mission Statement
 Mission serves as an ongoing
 The Vision describes and time-independent guide
a future identity  The Mission describes why it is
important to achieve the Vision
 A vision statement,  A Mission statement defines the
on the other hand, purpose or broader goal for
describes how the being in existence or in the
business and can remain the
future will look if the same for decades if crafted well
organization  your mission is what you do
achieves its mission best every day
 A mission statement explains
what the organization does, for
whom and the benefit
Leadership vs. Management.
  Centers for Disease Control
 Mission: To promote health and quality of life by
preventing and controlling disease, injury, and
disability
 Vision: Healthy People in a Healthy World
 Pakistan Department of Health
 Mission: To protect, maintain and improve the
health of all Pakistanis.
 Vision: Keeping All Pakistanis Healthy
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.
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.
 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

 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

 Which comes first?
The mission statement or the vision statement? That depends.
If you have a new start up business, new program or plan to re
engineer your current services, then the vision will guide the
mission statement and the rest of the strategic plan. If you
have an established business where the mission is established,
then many times, the mission guides the vision statement and
the rest of the strategic plan. Either way, you need to know
your fundamental purpose - the mission, your current
situation in terms of internal resources and capabilities
(strengths and/or weaknesses) and external conditions
(opportunities and/or threats), and where you want to go - the
vision for the future. It's important that you keep the end or
desired result in sight from the start