Ch 2 -1

Chapter 2The Business Vision & Mission

Ch 2 -2

Chapter Outline

What do we want to become?

What is our business?

Importance of Vision and Mission Statements

Ch 2 -3

Chapter Outline (cont’d)

Characteristics of a mission statement

Components of a mission statement

Writing & evaluating mission statements

Ch 2 -4

Vision

Agreement on the basic vision for which the firm strives to achieve in the long run is critically important to the firm’s success.

Ch 2 -5

“What do we want to become?”

Vision

Ch 2 -6

ComprehensiveMission Statement

Vision

Clear Business Vision

A clear vision provides the foundation for developing a comprehensive mission statement. Many organizations have both a vision and mission statement, but the vision statement should be established first and foremost

Ch 2 -7

“What is our business?”

Mission Statement

Ch 2 -8

Mission statement

Mission statement outlines the broad directions that the organization will follow and briefly summarizes the reasoning and values that lie behind it

The purpose of the mission statement is to communicate to all stakeholders ( 利益相关者） and outside the organization what the company stands for and where it is headed

Ch 2 -9

Mission Statements

•Enduring statement of purpose

•Distinguishes one firm from another

•Declares the firm’s reason for being

•Mission Statements can be also called

•Creed statement

•Statement of purpose

•Statement of philosophy

•Statement of business principles

Ch 2 -10

Reveal what an organization wants to be and whom it wants to serve

Mission Statements

Ch 2 -11

Vision & Mission

Many organizations develop both vision & mission statements.

Ch 2 -12

Shared Vision --Creates commonality of interestsReduce daily monotonyProvides opportunity & challenge

Importance of Vision & Mission

Ch 2 -13

Profit & vision are necessary to effectively motivate a workforce

Importance of Vision & Mission

Ch 2 -14

Essential for effectively establishing objectives and formulating strategies

Importance of Vision & Mission

Clear mission is needed before alternative strategies can be formulated and implemented

Ch 2 -15

Benefits from a strong mission

MissionResource Allocation

Unanimity of Purpose

Organizational Climate

Focal point for work structure

Pay more attention on daily administrative concerns and tactics Overlook the development of vision & mission

Develop vision & mission because feeling fashionable, rather than out of any real commitment

Develop vision & mission only when the company is in trouble

Ch 2 -16

Pitfalls of developing vision & mission

Ch 2 -17

Define what the organization is Define what it aspires to be Limited to exclude some ventures

Writing A Mission statement a mission statement should – Vern McGinnis

Broad enough to allow for growth Distinguishes firm from all others Stated clearly – understood by all

Characteristics of a mission statementA declaration of attitudeA customer orientationA declaration of social policy

Ch 2 -18

Ch 2 -19

Customer Orientation

It is the customer who determines what a business is.

What the customer thinks he/she is buying ,what he/she considers value, is decisive—it determines what a business is

What the customer buys and considers value is never a product. It is always utility, meaning what a product or service does for him or her

Ch 2 -20

Anticipates customer needs Identifies customer needs Provides product/service to satisfy needs

Mission & Customer Orientation

An Effective Mission Statement --

Ch 2 -21

Social policy affects development of vision & mission

Responsibilities to – Consumers Environmentalists Minorities Communities

Social Policy & Mission

Managerial philosophy shapes social policy --

Ch 2 -22

Social Policy & Mission

Social policy should be integrated in all strategic-management activities.

Mission should convey the social responsibility of the firm

Ch 2 -23

Mission Elements

CustomersMarkets

Employees

PublicImage

Self-Concept Philosophy

SurvivalGrowthProfit

ProductsServices

Technology

Ch 2 -24

Developing Vision & Mission

Participation from diverse managers is important in developing the mission.

Ch 2 -25

Key Terms & Concepts

For Review (Chapter 2)

Concern for Employees Customers

Concern for Public Image Markets

Survival, Growth, & Profitability

Mission Statement Components

Creed Statement Managerial Philosophy

Ch 2 -26

Key Terms & Concepts

For Review (Chapter 2)

Self Concept Stakeholders

Social Policy Vision Statement