The Business Vision and Mission

The Business Vision
and Mission
Lecture 5
What Do We Want to Become?
• A vision statement should answer the basic
question, “What do we want to become?”
• The vision statement should be short, and as

many managers as possible should have input into
developing the statement.
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
• reveals what an organization wants to be and whom it wants to serve
• Also called a creed statement, a statement of purpose, a statement of
philosophy, a statement of beliefs, and a statement of business principles
• Select several articles about these
statements and ask all managers to read
The Process these as background information.
of • Ask managers themselves to prepare a

vision and mission statement for the
Developing organization.
• Merge these statements into a single
Vision and document and distribute the draft
statements to all managers
Mission • Process should create an “emotional bond”
Statements and “sense of mission” between the
organization and its employees
Importance of Vision and
Mission Statements
1. To ensure unanimity 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

Benefits of Having a Clear Mission and Vision
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.
• Second, a mission statement needs to be broad to reconcile
differences effectively among, and appeal to, an organization’s
diverse stakeholders
• 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.
Characteristics of a Mission Statement
A Customer Orientation
A mission statement should:
• 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
A Customer Orientation
A mission statement should also:

• 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?
Example Mission Statements
• Fleetwood Enterprises will lead the recreational vehicle
and manufactured housing industries in providing quality
products, with a passion for customer-driven innovation.
We will emphasize training, embrace diversity and provide
growth opportunities for our associates and our dealers.
We will lead our industries in the application of
appropriate technologies. We will operate at the highest
levels of ethics and compliance with a focus on exemplary
corporate governance. We will deliver value to our
shareholders, positive operating results and industry-
leading earnings.
• We aspire to make PepsiCo the world’s
premier consumer products company,
focused on convenient foods and beverages.
Example We seek to produce healthy financial
Mission rewards for investors as we provide
opportunities for growth and enrichment to
Statements our employees, our business partners and
the communities in which we operate. And
in everything we do, we strive to act with
honesty, openness, fairness and integrity.
• Dell’s mission is to be the most successful computer

company in the world at delivering the best customer
experience in markets we serve. In doing so, Dell will
meet customer expectations of highest quality; leading
technology; competitive pricing; individual and
company accountability; best-in-class service and
support; flexible customization capability; superior
corporate citizenship; financial stability.
• Procter & Gamble will provide branded products and services of

superior quality and value that improve the lives of the world’s
consumers. As a result, consumers will reward us with industry
leadership in sales, profit, and value creation, allowing our people,
our shareholders, and the communities in which we live and work to
prosper.
Example
• At L’Oreal, we believe that lasting
Mission
business success is built upon ethical Statements
standards which guide growth and on a
genuine sense of responsibility to our
employees, our consumers, our
environment and to the communities in
which we operate.

The Business Vision and Mission

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The Business Vision

• The vision statement should be short, and as

of • Ask managers themselves to prepare a

1. To ensure unanimity of purpose within the

2. To provide a basis, or standard, for

3. To establish a general tone or organizational

5. To facilitate the translation of objectives into

6. To specify organizational purposes

A mission statement should also:

1. Customers—Who are the firm’s customers?

• Dell’s mission is to be the most successful computer

• Procter & Gamble will provide branded products and services of

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