The Business Mission
Strategic Management
Professor Sayed Elsayed-Elkhouly
Dr. Sayed Elsayed
Vision & Mission
Vision is the art of seeing things invisible
-- Jonathan Swift
The very essence of leadership is that
you have to have vision. You can’t blow
an uncertain trumpet.
-- Theodore Hesburgh
Dr. Sayed Elsayed
Vision
Management and executive agreement on
the basic vision for which the firm strives
to achieve in the long run is critically
important.
Dr. Sayed Elsayed
Vision
Vision statement answers the question:
“What do we want to become?”
Dr. Sayed Elsayed
Vision
Clear vision
– Provides foundation for comprehensive
mission statement
Dr. Sayed Elsayed
Vision & Mission
• Vision statement developed first
• Short – preferably one sentence
• Broad management involvement
Dr. Sayed Elsayed
Vision Statements
The Vision of the National Pawnbrokers
Association is to have complete and
vibrant membership that enjoys a
positive public and political image and is
the focal organization of all pawn
associations.
--National Pawnbrokers Association
Dr. Sayed Elsayed
Vision Statements
The Bellevue Hospital is the LEADER in
providing resources necessary to
realize the community’s highest level of
HEALTH throughout life.
--The Bellevue Hospital
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Vision Statements
To be the first choice in the printed
communications business. The first
choice is the best choice, and being the
best is what Atlanta Web pledges to
work hard at being - every day!
--Atlanta Web Printers, Inc.
Dr. Sayed Elsayed
Vision Statements
It is the vision of the California Energy
Commission for Californians to have
energy choices that are affordable,
reliable, diverse, safe, and
environmentally acceptable.
--California Energy Commission
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Mission Statements
Recent Data indicate that:
– 90% of all companies have used a mission
statement sometime in the previous five
years.
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Mission Statements
Mission statement answers the question:
“What is our business?”
Dr. Sayed Elsayed
Mission Statements
Mission Statement:
– Enduring statement of purpose
– Distinguishes one organization from
another in similar enterprises
– Declaration of an organization’s “reason for
being”
Dr. Sayed Elsayed
Mission Statements
Mission Statements also referred to as:
– Creed statement
– Statement of purpose
– Statement of philosophy
– Statement of business principles
Dr. Sayed Elsayed
Mission Statements
Mission Statements
– Reveal what an organization wants to be
and whom it wants to serve
Dr. Sayed Elsayed
Mission Statements
Mission Statements
– Essential for effectively establishing
objectives and formulating strategies
Dr. Sayed Elsayed
Vision and Mission
• Many organizations develop both vision
and mission statements
• Profit and vision are necessary to
effectively motivate a workforce
• Shared vision creates a commonality of
interests
Dr. Sayed Elsayed
Developing Vision & Mission
• Clear mission is needed before
alternative strategies can be formulated
and implemented
• Important to have as broad range of
participation as possible among
managers in developing the mission
Dr. Sayed Elsayed
Mission Statements
Mission Statement
“The Bellevue Hospital, with respect,
compassion, integrity, and courage, honors
the individuality and confidentiality of our
patients, employees, and community, and is
progressive in anticipating and providing
future health care services.”
Dr. Sayed Elsayed
Mission Statements
The Mission of USGS is to serve the Nation by
providing reliable scientific information to
• Describe and understand the Earth;
• Minimize loss of life and property from natural
disasters;
• Manage water, biological, energy, and mineral
resources; and enhance and protect our quality
of life.
Dr. Sayed Elsayed
Mission Statements
“It is the California Energy Commission’s
mission to assess, advocate, and act
through improve energy systems that
promote a strong economy and a healthy
environment.”
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Importance of Mission
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Unanimity of purpose within the organization
Basis for allocating resources
Establish organizational climate
Focal point for direction
Translate objectives into work structure
Cost, time and performance parameters
assessed and controlled
Dr. Sayed Elsayed
Mission Characteristics
Effective mission statements:
• Broad in scope
• Generate range of feasible strategic
alternatives
• Not excessively specific
• Reconcile interests among diverse
stakeholders
• Finely balanced between specificity &
generality
Dr. Sayed Elsayed
Mission Characteristics
Effective mission statements:
• Arouse positive feelings and emotions
• Motivate readers to action
• Generate the impression that firm is
successful, has direction, and is worthy of
time, support, and investment
Dr. Sayed Elsayed
Mission Characteristics
Effective mission statements:
• Reflect judgments re: future growth
• Provide criteria for selecting strategies
• Basis for generating & screening strategic
options
• Are dynamic in orientation
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Customer Orientation
According to Vern McGinnis, mission should:
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Define what the organization is
Define what the organization aspires to be
Limited to exclude some ventures
Broad enough to allow for creative growth
Distinguish the firm from all others
Serve as framework to evaluate current
activities
Stated clearly so that it is understood by all
Dr. Sayed Elsayed
Customer Orientation
A good mission statement reflects the
anticipations of customers.
•
•
Identify customer needs
Provide product/service to satisfy needs
AT&T’s mission focuses on communications, not
telephones
Exxon’s mission focuses on energy, not on oil
and gas
Dr. Sayed Elsayed
Social Policy & Mission
Managerial philosophy and thinking at the
highest levels in the organization reflect
social policy.
•
•
Affects development of vision & mission
Responsibilities to consumers,
environmentalists, minorities,
communities, & other groups
Dr. Sayed Elsayed
Social Policy & Mission
•
Social policy should be integrated in all
strategic-management activities.
•
Mission statement is an effective
instrument for conveying the social
responsibility of the firm.
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Components of Mission
Mission statements vary in…
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Length
Content
Format
Specificity
Must include the 9 elements, as the mission
statement is the most public and visible part of
the strategic-management process.
Dr. Sayed Elsayed
Mission Components
1.
2.
3.
4.
5.
6.
7.
8.
9.
Customers
Products or services
Markets
Technology
Survival, growth, and profitability
Philosophy
Self-concept
Concern for public image
Concern for employees
Dr. Sayed Elsayed
Components of Mission
Components of mission and corresponding
questions to be answered:
•
Customers:
“Who are the firm’s customers?”
•
Products or services:
“What are the firm's major products or
services?”
Dr. Sayed Elsayed
Components of Mission
•
Markets:
“Geographically, where does the firm
compete?”
•
Technology:
“Is the firm technologically current?”
Dr. Sayed Elsayed
Components of Mission
•
Concern for survival, growth, and
profitability:
“Is the firm committed to growth and
financial soundness?”
•
Philosophy:
“What are the basic beliefs, values,
aspirations, and ethical priorities of the
firm?”
Dr. Sayed Elsayed
Components of Mission
•
Self-concept:
“What is the firm’s distinctive competence or major
competitive advantage?”
•
Concern for public image:
“Is the firm responsive to social, community, and
environmental concerns?”
•
Concern for employees:
“Are employees a valuable asset of the firm?”
Dr. Sayed Elsayed
Importance of Vision & Mission
Although research results are mixed, firms with
formal mission statements…
• 2X average return on shareholder’s equity
• Positive relationship to organizational performance
• 30% higher return on certain financial measures
Dr. Sayed Elsayed
PepsiCo Mission Statement
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.
Dr. Sayed Elsayed
Ben & Jerry’s Mission Statement
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.
Dr. Sayed Elsayed
Evaluation Matrix of Mission Statements
COMPONENTS
Customers
Products
Services
Markets
Concern for
Survival,
Growth,
Profitability
PepsiCo
Yes
No
No
Yes
No
Ben & Jerry's
No
Yes
Yes
Yes
No
Organization
Dr. Sayed Elsayed
Technology
Evaluation Matrix of Mission Statements
COMPONENTS
Philosophy
SelfConcept
Concern for
Public Image
Concern for
Employees
PepsiCo
Yes
No
No
No
Ben & Jerry's
No
Yes
Yes
Yes
Organization
Dr. Sayed Elsayed
Key Terms & Concepts
• Concern for Employees
• Concern for Public Image
• Concern for Survival, Growth, and
Profitability
• Creed Statement
Dr. Sayed Elsayed
Key Terms & Concepts
• Customers
• Markets
• Mission Statement Components
• Philosophy
Dr. Sayed Elsayed
Key Terms & Concepts
• Self-Concept
• Social Policy
• Stakeholders
• Vision Statement
Dr. Sayed Elsayed