Business mission

7/29/2019 Business mission

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Strategic ManagementConcepts & Cases

8thedition

Fred R. David

Chapter 2:The Business MissionPowerPoint Slides By:

Anthony F. Chelte

Western New England College


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Comprehensive Strategic ManagementModel

Vision&

MissionStatements

Chapter 2

ExternalAudit

Chapter 3

Internal

Audit

Chapter 4

Long-Term

Objectives

Chapter 5

Generate,Evaluate,

SelectStrategies

Chapter 6

Implement

Strategies:Mgmt Issues

Chapter 7

ImplementStrategies:

Marketing,Fin/Acct,R&D, CIS

Chapter 8

Measure &

EvaluatePerformance

Chapter 9


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Vision & Mission

That business mission is so rarely givenadequate thought is perhaps the

most important single cause ofbusiness frustration.

Peter Drucker


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Vision & Mission (Contd)

Mission statement answers the

question:

What is our business?


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Vision statement answers the question:

What do we want to become?


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Many companies develop both

Shared vision can motivate employees

Develops a commonality of interests

Helps focus on opportunity &challenge


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Developing Vision & Mission

Clear mission is needed beforealternative strategies can be

formulated and implemented

Important to have as broad range of

participation as possible amongmanagers in developing the mission


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Examples

Vision Statement

The Bellevue Hospital is the LEADERin providing resources necessary torealize the communitys highest levelof HEALTH throughout life.


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Examples (Contd)

Mission Statement

The Bellevue Hospital, with respect,

compassion, integrity, and courage, honorsthe individuality and confidentiality of ourpatients, employees, and community, and isprogressive in anticipating and providingfuture health care services.


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Examples (Contd)

Vision Statement

The Vision of USGS is to be a worldleader in the natural sciences throughour scientific excellence andresponsiveness to societys needs.

-U.S. Geological Survey (USGS)-


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Examples (Contd)

Mission Statement

The Mission of USGS is to serve the Nationby providing reliable scientific information to

Describe and understand the Earth; Minimize loss of life and property from

natural disasters; Manage water, biological, energy, and mineralresources; and enhance and protect ourquality of life.


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Examples (Contd)

Vision Statement

It is the vision of the California Energy

Commission for Californians to haveenergy choices that are affordable,reliable, diverse, safe, and

environmentally acceptable.


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Examples (Contd)

Mission Statement

It is the California Energy Commissions

mission to assess, advocate, and actthrough public/private partnerships toimprove energy systems that promote a

strong economy and a healthyenvironment.


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Characteristics of a Mission

According to Vern McGinnis, mission should:

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 currentactivities

Stated clearly so that it is understood by all


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Characteristics of a Mission(Contd)

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


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Arouse positive feelings and emotions

Motivate readers to action

Generate the impression that firm is

successful, has direction, and is worthyof time, support, and investment


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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

A good mission statement reflects theanticipations of customers.

Identify customer needs Provide product/service to satisfy

needsAT&Ts mission focuses on communications,

not telephones

Exxons mission focuses on energy, not on oiland gas


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Social Policy & Mission

Managerial philosophy and thinking at thehighest levels in the organizationreflect social policy.

Affects development of vision &mission

Responsibilities to consumers,

environmentalists, minorities,communities, & other groups


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Social Policy & Mission (Contd)

Social policy should be integrated in allstrategic-management activities.

Mission statement is an effectiveinstrument for conveying the social

responsibility of the firm.


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Components of Mission

Mission statements vary in

Length

Content Format Specificity

Must include the 9 elements, as the missionstatement is the most public and visiblepart of the strategic-management process.


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Components of Mission (Contd)

Customers Products or services Markets

Technology Survival, growth, and profitability Philosophy

Self-concept Concern for public image Concern for employees


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Components of mission and correspondingquestions to be answered:

Customers:Who are the firms customers?

Products or services:What are the firm's major products or

services?


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Markets:

Geographically, where does the firmcompete?

Technology:Is the firm technologically current?


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Concern for survival, growth, andprofitability:Is the firm committed to growth and

financial soundness?

Philosophy:

What are the basic beliefs, values,aspirations, and ethical priorities of thefirm?


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Self-concept:What is the firms 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?


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Importance of Vision & Mission

Although research results are mixed, firms withformal mission statements

2X average return on shareholders equity

Positive relationship to organizationalperformance

30% higher return on certain financial measures


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Global Perspective

Major Challenges in 2000

31%39%24%Incr. flexibility & speed

3%9%26%Competing for talent

38%32%28%Engaging emp. in mission

41%32%29%Reducing costs

16%42%30%Managing M&As, alliances

3%28%44%Customer loyalty

JapanEuropeUSA


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Key Terms & Concepts

Concern for employees Concern for public

image

Concern for survival,

growth, andprofitability

Creed statement

Customers

Markets Mission statement

Mission statementcomponents

Philosophy

Products or services

Self-concept Social policy

Stakeholders

Technology Vision statement

Documents

Business mission