STRATEGIC MANAGEMENT
CHAPTER 5 – VISION AND MISSION ANALYSIS
WHAT DO WE WANT TO B ECOME?
A vision statement should answer the basic question, “What do we want to become?”
- Short and 1 sentence
- At least mention the business you are operating in, in your vision statement
WHAT IS OUR BUSINESS ?
Mission statement:
► A declaration of an organization’s “reason for being.”
► Answers the question “What is our business?”
► Essential for effectively establishing objectives and formulating strategies
► What is wants to be and whom it wants to serve
Shares visions creates a commodity of interests that can lift workers out of their monotony daily work and
put them into more opportunities and challenges
- Employees must reflect each other’s personal visions
IMPORTANCE OF VISION AND MISSION STATEMEN TS
CHARACTERISTICS OF A MISSION STATEMENT
, Declaration of attitude
Two reasons for a mission statement to be broad in scope
1. A good mission statement allows for the generation and consideration of a range of feasible
alternative objectives and strategies without unduly stifling management creativity
Specificity would limit the potential creative growth for the firm
2. A mission statement needs to be broad to reconcile differences effectively among, and appeal to,
an organization’s diverse stakeholders
Stakeholders are affected and affect by a firm’s strategies, claims and concerns
A customer orientation
► define what the organization is and what the organization aspires to be
► be limited enough to exclude some ventures and broad enough to allow for creative growth
► distinguish a given organization from all others
► serve as a framework for evaluating both current and prospective activities
► be stated in terms sufficiently clear to be widely understood throughout the organization
► A good mission statement reflects the anticipations of customers.
► The operating philosophy of organizations should be to identify customers’ needs and then provide
a product or service to fulfill those needs.
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?
6. Philosophy—What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
7. 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?
EXAMPLES OF 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).
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).
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).
CHAPTER 5 – VISION AND MISSION ANALYSIS
WHAT DO WE WANT TO B ECOME?
A vision statement should answer the basic question, “What do we want to become?”
- Short and 1 sentence
- At least mention the business you are operating in, in your vision statement
WHAT IS OUR BUSINESS ?
Mission statement:
► A declaration of an organization’s “reason for being.”
► Answers the question “What is our business?”
► Essential for effectively establishing objectives and formulating strategies
► What is wants to be and whom it wants to serve
Shares visions creates a commodity of interests that can lift workers out of their monotony daily work and
put them into more opportunities and challenges
- Employees must reflect each other’s personal visions
IMPORTANCE OF VISION AND MISSION STATEMEN TS
CHARACTERISTICS OF A MISSION STATEMENT
, Declaration of attitude
Two reasons for a mission statement to be broad in scope
1. A good mission statement allows for the generation and consideration of a range of feasible
alternative objectives and strategies without unduly stifling management creativity
Specificity would limit the potential creative growth for the firm
2. A mission statement needs to be broad to reconcile differences effectively among, and appeal to,
an organization’s diverse stakeholders
Stakeholders are affected and affect by a firm’s strategies, claims and concerns
A customer orientation
► define what the organization is and what the organization aspires to be
► be limited enough to exclude some ventures and broad enough to allow for creative growth
► distinguish a given organization from all others
► serve as a framework for evaluating both current and prospective activities
► be stated in terms sufficiently clear to be widely understood throughout the organization
► A good mission statement reflects the anticipations of customers.
► The operating philosophy of organizations should be to identify customers’ needs and then provide
a product or service to fulfill those needs.
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?
6. Philosophy—What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
7. 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?
EXAMPLES OF 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).
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).
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).
