Strategic Management

Dr. Karim Kobeissi

Chapter 2: The Business Vision & Mission

Introduction

Carefully prepared vision and mission statements are

widely recognized by academics as the first step of

any strategic-management process. The stage of

development of vision and mission statements of

the strategic management process is revealed in the

next slide.

A Complete Strategic-Management Model

V i s i o n S t a t e m e n tA Vision Statement defines the optimal desired future

state of what an organization wants to achieve over time. It provides guidance and inspiration as to what an organization is focused on achieving in five, ten, or more years.

• A vision statement should answer the basic question: “What do we want to become?”

• A clear vision provides the foundation for developing a comprehensive mission statement.

• The vision statement should be short, preferably one sentence.

• As many managers as possible should have input into developing the vision statement.

Examples of Vision Statement

GM has 1 vision: To design, build and sell the world's best vehicles while creating a self-sustaining cycle of reinvestment in design, building, & brand strength.

Making Great Food. Making a Difference.

Examples of Vision Statement

To enable our clients to be life confident because they feel reassured, protected and supported as they undertake important projects at various stages in their lives.

Examples of Vision Statement

Mission Statement - Definition The mission statement is a brief statement (maximum 200 words)

that declares the purpose of an organization and defines the

reason for the company's existence.

• The mission statement provides the framework and context to

help guide the company's strategies and actions by spelling out

the business's overall goal. Ultimately, a mission statement helps

guide decision-making internally while also articulating the

company's mission to customers, suppliers and the community.

• The mission statement answers the question: “What is our

business?” .

Mission Statement – Definition (con)According to Vern McGinnis, a mission statement should:

1) Define what the organization is and what the organization

aspires to be

2) Be limited enough to exclude some ventures and broad enough

to allow for creative growth

3) Distinguish a given organization from all others

4) Serve as a framework for evaluating both current and

prospective activities

5) Be stated in terms sufficiently clear to be widely understood

throughout the organization.

Components of a Mission Statement Because a mission statement is often the most visible and public part of

the strategic-management process, it is important that it includes

the following nine components:

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

2. Products —What are the firm’s major products?

3. Markets—Geographically, where does the firm compete?

4. Technology—Is the firm technologically modern?

5. Concern for survival, growth, and profitability—Is the firm committed

to growth and financial soundness?

Components of a Mission Statement (con)

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?

Characteristics of a Mission Statement A Declaration of Attitude

A mission statement is more than a statement of specific details; it is a

declaration of attitude and orientation. It usually is broad in scope for

at least two major reasons:

1. Excess specificity would limit the potential of creative growth for

the organization.

Characteristics of a Mission Statement (con)

2- A mission statement needs to be broad to reconcile differences

among, and appeal to, an organization’s diverse stakeholders

(employees, managers, stockholders, boards of directors, customers,

suppliers, distributors, creditors, governments, unions, competitors,

environmental groups, and the general public) that affect and are

affected by an organization’s strategies, yet the claims and concerns

of diverse constituencies vary and often conflict.

Characteristics of a Mission Statement (con)

A Customer Orientation

A good mission statement describes an organization’s purpose,

customers, products, markets, philosophy, and basic technology. In

fact, a good mission statement reflects the expectations of

customers. Rather than developing a product and then trying to find

a market, the operating philosophy of organizations should be to

identify customers’ needs and then provide a product or service to

fulfil those needs.

Examples of Mission Statement

The mission of McGill University is the

advancement of learning and the creation and

dissemination of knowledge, by offering the best

possible education, by carrying out research and

scholarly activities judged to be excellent by the

highest international standards, and by providing

service to society.

Exemples d’Énoncés de Mission

“Create a family of devices and services for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value most” (Steve Ballmer, 2013).

Examples of Mission Statement

Total mission is to act responsibly to allow more access to energy in a world where demand continues to grow, based on three fundamental pillars:

1. Ethics2. Security3. Corporate social and environmental

responsibility.

Ten Benefits of Having a Clear Mission and Vision1. Achieve clarity of purpose among all managers and employees.2. Provide a basis for all other strategic planning activities, including the

internal and external assessment, establishing objectives, developing strategies, choosing among alternative strategies, devising policies, establishing organizational structure, allocating resources, and evaluating performance.

3. Provide direction.4. Provide a focal point for all stakeholders of the firm.5. Resolve divergent views among managers.6. Promote a sense of shared expectations among all managers and

employees.7. Project a sense of worth and intent to all stakeholders.8. Project an organized, motivated organization worthy of support.9. Achieve higher organizational performance.10. Achieve synergy among all managers and employees.

A Process for Developing Vision & Mission Statements

1) Ask each director to read articles associated with this topic.

2) Ask each director to prepare a vision statement and

mission for the company.

3) Merge documents resulting in one and then distribute it.

4) Gather feedback from the directors.

5) Assemble all directors to review the final document.