Chapter Outline. Chapter 2 The Business Vision & Mission. What do we want to become? What is our business? Importance of Vision and Mission Statements

Transcription

1 Chapter 2 The Business Vision & Mission Strategic Management: Concepts & Cases 13 th Edition Fred David Ch 2-1 Chapter Outline What do we want to become? What is our business? Importance of Vision and Mission Statements Ch 2-2 ١

2 Chapter Outline (cont d) Characteristics of a mission statement Components of a mission statement Writing & evaluating mission statements Ch 2-3 Vision The last thing IBM needs right now is a vision. (July 1993) What IBM needs most right now is a vision. (March 1996) -- Louis V. Gerstner, Jr., CEO, IBM Corporation Ch 2-4 ٢

3 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 Vision What do we want to become? Ch 2-6 ٣

4 Vision Clear Business Vision Comprehensive Mission Statement Ch 2-7 Vision The vision should be built on a foundation of the organization s core values and beliefs The vision should elaborate a purpose for the organization The vision should include a brief summary of what the organization does The vision should specify broad goals Ch 2-8 ٤

5 Vision & Mission Shared Vision -- Creates commonality of interests (الرتابة) Reduce daily monotony Provides opportunity & challenge Ch 2-9 Vision Statement Examples A national organization which represents its members in all aspects of poultry and eggs on both a national and international level -- U.S. Poultry & Egg Association Ch 2-10 ٥

6 Vision Statement Examples The Vision of USGS is to be a world leader in the natural sciences through our scientific excellence and responsiveness to society s needs -- U.S. Geological Survey (USGS) Ch 2-11 Vision Statement Examples To be the first choice in the printed communications business. The first choice is the best choice, and being the best is what Atlanta Web pledges to work hard at being every day! -- Atlanta Web Printers, Inc. Ch 2-12 ٦

7 Mission Statements -- 90% of all companies have used a mission statement in the previous five years Ch 2-13 Mission Statements What is our business? Ch 2-14 ٧

8 Mission Statements Enduring statement of purpose Distinguishes one firm from another Declares the firm s reason for being Ch 2-15 Mission Statements Also referred to as: Creed statement (Faith, Dogma, Belief) Statement of purpose Statement of philosophy Statement of business principles Ch 2-16 ٨

9 Ch 2-17 Mission Statements Reveal what an organization wants to be and whom it wants to serve Ch 2-18 ٩

10 Mission Statements Essential for effectively establishing objectives and formulating strategies Ch 2-19 Vision & Mission Many organizations develop both vision & mission statements Ch 2-20 ١٠

11 Vision & Mission Profit & vision are necessary to effectively motivate a workforce Ch 2-21 Vision & Mission Shared vision creates a community of interests Ch 2-22 ١١

12 Developing Vision & Mission Clear mission is needed before alternative strategies can be formulated and implemented Ch 2-23 Developing Vision & Mission A widely used approach to developing a mission statement is to 1. Select several articles about mission statements and ask all managers to read these as background information. 2. Ask managers to prepare a mission statement for the organization. 3. A facilitator, or committee of top managers, should then merge these statements into a single document and distribute this draft to all managers. 4. A request for modifications, additions, and deletions is needed next along with a meeting to revise the document. IE dept. Example Ch 2-24 ١٢

13 Developing Vision & Mission Participation from diverse managers is important in developing the mission Ch 2-25 Mission Statement Examples It is the California Energy Commission s mission to assess, advocate, and act through public/private partnerships to improve energy systems that promote a strong economy and healthy environment. -- California Energy Commission Ch 2-26 ١٣

14 Mission Statement Examples The Bellevue Hospital, with respect, compassion, integrity, and courage, honors the individuality and confidentiality of our patients, employees, and community, and is progressive in anticipating and providing future health care services. -- The Bellevue Hospital Ch 2-27 Mission Statement Examples John Deere has grown and prospered through a long-standing partnership with the world s most productive farmers. Today, John Deere is a global company with several equipment operations and complementary service businesses. These businesses are closely interrelated, providing the company with significant growth opportunities and other synergistic benefits. -- John Deere, Inc. Ch 2-28 ١٤

15 Importance of Mission Benefits from a strong mission Unanimity of Purpose Mission Resource Allocation Organizational Climate Focal point for work structure Ch 2-29 Effective Missions Broad in scope Generate strategic alternatives Not overly specific Reconciles interests among diverse stakeholders Finely balanced between specificity & generality Ch 2-30 ١٥

16 Effective Missions Arouse positive feelings & emotions Motivate readers to action Generate favorable impression of the firm Ch 2-31 Effective Missions Reflect future growth Provide criteria for strategy selection Basis for generating & evaluating strategic options Are dynamic in nature Ch 2-32 ١٦

17 Mission & Customer Orientation Vern McGinnis Should: Define what the organization is Define what it aspires to be Limited to exclude some ventures Broad enough to allow for growth Distinguishes firm from all others Stated clearly understood by all Should be short Ch 2-33 Mission & Customer Orientation An Effective Mission Statement -- Anticipates customer needs Identifies customer needs Provides product/service to satisfy needs Ch 2-34 ١٧

18 Vision & Mission Research results are mixed, however, firms with formal mission statements generally see a: 2x average return on shareholder s equity Positive relationship to company performance 30% higher return on certain financial measures Ch Customers 1. Products Services 3. Markets 8. Employees Mission Elements 11. Technology 12. Public Image Self-Concept 2. Philosophy 4. Survival Growth Profit Ch 2-36 ١٨

19 Mission Elements 1. Strategic Direction 1. Product 2. Organization philosophy 3. Goal of market leadership 4. Commitment to profit 5. Geographic domain 2. Stakeholder concern 6. Customers 7. Shareholders 8. Employees 9. Suppliers 3. Strategy Success factors 10. Quality 11. Innovation/technology 12. environment and social concern Ch 2-37 PepsiCo Mission PepsiCo s mission is to increase the value of our shareholders investment. We do this through sales growth, cost controls, and wise investment resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity. Ch 2-38 ١٩

20 Ben & Jerry s Mission Ben & Jerry s mission is to make, distribute and sell the finest quality all-natural ice cream and related products in a wide variety of innovative flavors made from Vermont dairy products. To operate the Company on a sound financial basis of profitable growth, increasing value for our shareholders, and creating career opportunities and financial rewards for our employees. To operate the Company in a way that actively recognizes the central role that business plays in the structure of society by initiating innovative ways to improve the quality of life of a broad community local, national and international. Ch 2-39 Mission Statement Evaluation Matrix COMPONENTS Organization Customers Products Services Markets Concern for Survival, Growth, Profitability Technology PepsiCo Yes No No Yes No Ben & Jerry's No Yes Yes Yes No Ch 2-40 ٢٠

21 Mission Statement Evaluation Matrix COMPONENTS Organization Philosophy Self- Concept Concern for Public Image Concern for Employees PepsiCo Yes No No No Ben & Jerry's No Yes Yes Yes Ch 2-41 Experience to be shared with you HE Workshop Ch 2-42 ٢١

22 Local Companies Mission Statement Examples Vision and mission Example 2 Example 3 And more Ch 2-43 Local Companies Mission Statement Examples HIKMA Pharmaceuticals Mission Our mission is to reach world markets in supplying quality products at affordable prices by developing, manufacturing and marketing products that improve the quality of life for people around the globe. Our success is founded on meeting the expectations of all our customers, our people, our shareholders and the communities in which we live and work. Ch 2-44 ٢٢

23 Local Companies Mission Statement Examples Jordan Steel is a Public Limited Shareholding Company (P.L.C.) that was established and registered in Jordan on march 3, 1993 under number (226) in the Public Shareholding Registry of the Ministry of Industry and Trade with a fully paid up capital of 15 million JDs (23 Million Dollars), and a production capacity of 300,000 MT tons per year, making it the largest steel manufacturing company in Jordan. It aims to produce steel in various types and shapes to meet the increasing demand for construction and other steel products in Jordan and the Middle East. Ch 2-45 Local Companies Mission Statement Examples Hatif our mission of improving service and adopting up-to-date methods to keep up with the times. We want to be able to reach our customers wherever they are. And not only that, but we also want our customers to be able to reach us directly with their feedback on our products and services. Afterall, at Hatif Telecom, the customer comes first. Ch 2-46 ٢٣

24 Local Companies Mission Statement Examples Batelco Jordan Our mission is to be Jordan's market leader for data communication and internet solutions offering innovation, value, and the highest standard of customer excellence. Ch 2-47 Local Companies Mission Statement Examples The Housing Bank Our Vision The Housing Bank for Trade & Finance is the preferred bank for customers Our Mission Provide innovated banking services of high quality to our retail and corporate clients, which meet their needs and expectations, in line with the latest developments in international financial and banking markets. Ch 2-48 ٢٤

25 Movie 1 Movie 2 Ch 2-49 ٢٥