2. The Business Vision &
Mission
DR. KHADIJAH OMAR
UMT
Introduction
• We perhaps can best understand vision
and mission by focusing on a business when
it is first started.
• Vision and mission statements often can be
found in the front of annual report
• Research conclude that companies have
used a mission statement sometime in the
previous five years
Vision
• ‘what do we want to become’
• Vision statement should be establish
first and foremost
• Preferably in a single sentence
– Go to page 76 for examples
Mission
• ‘What is our business’
• Sometimes called ‘reason for being’
or creed statement
• Some firms develop mission
statement simply because they feel
it is fashionable rather than
commitment
• Should revisit vision and mission
statements to realize benefits
• Review, reword and reaffirm the
firm’s vision and mission
The ways of developing vision
and mission statements
• commonly done – select articles about
these statements and read
– ask managers to prepare for the statements
– then these statements merge into a single
document and the draft will be distribute to all
managers
– the modification done (addition, deletion)
• Some firms use discussion group or hire
consultants to develop or modify existing
statement
Importance of Vision and Mission
•
•
•
•
•
Ensure unanimity of purpose
Provide basis for allocating resources
Establish general tone/climate
Serve as a focal point
Facilitate the translation of
objectives into work structure
• To specify organizational purpose
Characteristics of a mission
statement
• A mission statement should portray:
– A declaration of attitude
– A customer orientation
– 9 components of an effective statement
A declaration of attitude
• Mission statement are not designed to express
concrete ends, rather to provide motivation,
direction, image, tone, and philosophy.
• Vagueness leaves rooms to fill in details and
modify the general.
• Mission should not be too lengthy.
• Broad in scope to allow generation/consideration
of alternatives and reconcile the differences
• An effective mission statement generates the
impression that a firm is successful, has
direction, and is worthy of time, support and
investment
A customer orientation
• A major reason for developing mission
statement is to attract customers who
give meaning to organization
• Good mission statements identify the
utility of a firm’s products/service to its
customers
• (AT&T’s mission statement focuses on
telecommunication rather than telephone
and EXXON mobil’s mission statement
focuses on energy rather than oil and gas)
General characteristics of a good
mission statement
•
•
•
•
•
•
Broad in scope
Less than 250 words
Inspiring
Identify the utility of firm’s product
Reveal the firm’s social responsibility
Reveal the firm’s environmental
responsibility
• Include 9 necessary components
• Enduring
•
Mission Statement 9
Components
• Customers - who are the firm’s customers?
• Products or services – firm’s major products
/services?
• Markets –geographically where does firm
compete?
• Technology – current?
• Concern for survival, growth and
profitability – committed to growth and
financial soundness?
Mission Statement 9
Components
• Philosophy– basic beliefs, values,
aspirations, ethics?
• Self-concept – distinctive competence or
competitive advantage?
• Concern for public image – responsive to
social, community and environmental
concern?
• Concern for employees – are employees
valuable assets to the firm?
Writing and evaluating
mission statements
• There is no one best mission
statement for a particular
organization, so good judgment is
required in evaluating mission
statement
• A better mission statement is when it
has more of the nine components in it
and clear
Ten benefits of having clear
mission and vision
• 1.achieve clarity of purpose
• 2.provide basis for all other
strategic planning activities
• 3.provide direction
• 4.provide focal point for all
stakeholders
• 5.Resolve divergent views
• 6.promote a sense of shared
expectations
• 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 organizational synergy
among employees and managers
• Go to page 85 (Table 2-4)
• Essential components of a mission
statement
• Go to page 75 (table 2-1)
• Which mission statement is the
best/worst?
The End
TQVM