The Business Vision and

Mission

Dr. Sajjad Haider

Contents of Presentation

Business Vision and Mission Statement

Vision Statement
Mission Statement
The Process of Developing Vision and
Mission

Triple bottom-line
Importance of Vision and Mission
Statements
Characteristics of a Mission Statement
Benefits of Having a Clear Mission and
Vision
Components of Mission Statement
2
Example Mission Statements
Chapter Objectives

1. Describe the nature and role of vision and mission statements in strategic
management.
2. Discuss why the process of developing a mission statement is important.
3. Identify the components of mission statements.
4. Evaluate mission statements of different organizations.
5. Write good vision and mission statements.
The Business Vision and
Mission

"A business is not defined by

its name, statutes, or articles
of incorporation. It is defined
by the business mission.
Only a clear definition of the
mission and purpose of the
organization makes possible
clear and realistic business
objectives”.
~ Peter Drucker
Notable Quotations on Vision and Mission

• A corporate vision can focus, direct, motivate, unify, and even excite a business
into superior performance. The job of a strategist is to identify and project a clear
vision.
~ John Keane

• That business mission is so rarely given adequate thought is perhaps the most
important single cause of business frustration."
~ Peter Drucker
What Do We Want to Become?

A vision statement should answer the

basic question, “What do we want to
become?”
Vision Statement Examples
What Is Our Business?

• Mission statement
• a declaration of an organization’s “reason for being.”
• answers the pivotal question “What is our business?”
• essential for effectively establishing objectives and formulating strategies
Mission Statement

• Mission statement
• reveals what an organization wants to be and whom it wants to serve.
• Also called a creed statement (your underlying principle, doctrine), a statement of purpose, a
statement of philosophy, a statement of beliefs, and a statement of business principles.
A Comprehensive Strategic Management Model
The Process of Developing Vision and Mission

1. Ask deptt. and units to conduct interactive sessions with their

employees to chalk out the vision, mission and values

2. Assign responsibility to an active employee from each deptt to

document the inputs from their employees

3. Arrange a centralized workshop and create cross-functional teams

to discuss the vision and mission

4. Literature review – search and research external sources

The Process of Developing Vision…2

5. Get the input from key stakeholders – major stockholders

6. Revisit the original purpose and goals of the org and see how it has
been evolved over the years.

7. Craft vision, mission and values – may get the help of a facilitator or
an external consultant (may have the unbiased views….)

8. Refine, tweak and improve based on the diversified inputs

9. Share the final version with all the units /departments

Vision and Mission may bolster
emotional bond

• The vision, mission and values

should create an “emotional bond”
and “sense of mission” between
the organization and its employees.
• Employees should feel proud of
their org values, care and concern
for environment and sustainable
development.
What is Triple bottom-line?
Triple bottom-line
Importance of Vision and Mission Statements

1. To ensure unanimity and harmony of purpose within the

organization.

2. To provide a basis, or standard, for allocating organizational

resources.

3. To establish a general tone or organizational climate.

Importance of Vision and Mission Statements…

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. To specify organizational purposes.

Characteristics of a Mission Statement

• First, a good mission statement allows for the generation and consideration of a
range of feasible alternative objectives and strategies without unduly stifling
management creativity.
Characteristics of a Mission Statement

• Second, a mission statement needs to be broad to reconcile differences effectively

among, and appeal to, an organization’s diverse stakeholders.
Characteristics of a Mission Statement

• Stakeholders
• include employees, managers, stockholders, boards of directors, customers, suppliers,
distributors, creditors, governments (local, state, federal, and foreign), unions, competitors,
environmental groups, and the general public.
Benefits of Having a Clear Mission and Vision
A Customer Orientation

A mission statement should:

o define what the organization is and what the organization aspires to be…
o be limited enough to exclude some ventures and broad enough to allow for
creative growth
o distinguish an organization from all others
A Customer Orientation

A mission statement should also:

o serve as a framework for evaluating both current and prospective activities.

o be stated in terms sufficiently clear to be widely understood throughout the

organization
A Good Mission Statement

o A good mission statement reflects the anticipations of customers/citizens

o The operating philosophy of organizations should be to identify customers’ needs

and then provide products or services to fulfill those needs.
Mission Statement Components…1

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 capable enough?

Mission Statement Components…2

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?
Mission Statement Components…3

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?

Characteristics of a Mission Statement
Example Mission Statements – PepsiCo

• 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).
Example Mission Statements – Dell Computers

• 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).
Example Mission Statements – Proctor & Gamble (P&G)

• 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.
Example Mission Statements – L’Oreal

• 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 (1), our environment and to the communities in
which we operate (8).
Example Mission Statements

• PayPal
To build the web’s most
convenient, secure and cost-
effective payment solutions.

P.S. In 2002, PayPal was acquired by eBay for US$1.5 billion, of which Elon
Musk received US$165 million.
Example Mission Statements

• Tesla Motors
To accelerate the advent of
sustainable transport by
bringing compelling
mass market electric cars
to market as soon as
possible.
The End

Happy Reading

Sajjad Haider, PhD