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Chapter2

TheBusinessVision&MissionStrategicManagement:

Concepts&Cases11thEditionFredDavid

Ch2-1Copyright2007PrenticeHallChapterOutlineWhatdowewanttobecome?Whatisourbusiness?ImportanceofVisionandMissionStatementsCh2-2Copyright2007PrenticeHallChapterOutline(cont’d)CharacteristicsofamissionstatementComponentsofamissionstatementWriting&evaluatingmissionstatementsCh2-3Copyright2007PrenticeHallVision

Agreementonthebasicvisionforwhichthefirmstrivestoachieveinthelongruniscriticallyimportanttothefirm’ssuccess.Ch2-4Copyright2007PrenticeHall

“Whatdowewanttobecome?〞VisionCh2-5Copyright2007PrenticeHallComprehensive

MissionStatementVisionClearBusiness

VisionCh2-6Copyright2007PrenticeHall

SharedVision--CreatescommonalityofinterestsReducedailymonotonyProvidesopportunity&challengeVision&MissionCh2-7Copyright2007PrenticeHall

“Whatisourbusiness?〞MissionStatementsCh2-8Copyright2007PrenticeHallMissionStatementsEnduringstatementofpurposeDistinguishesonefirmfromanotherDeclaresthefirm’sreasonforbeingCh2-9Copyright2007PrenticeHallMissionStatementsCreedstatementStatementofpurposeStatementofphilosophyStatementofbusinessprinciplesAlsoreferredtoas:Ch2-10Copyright2007PrenticeHallCh2-11Copyright2007PrenticeHall

RevealwhatanorganizationwantstobeandwhomitwantstoserveMissionStatements

EssentialforeffectivelyestablishingobjectivesandformulatingstrategiesCh2-12Copyright2007PrenticeHallVision&MissionManyorganizationsdevelopbothvision&missionstatementsCh2-13Copyright2007PrenticeHallVision&MissionProfit&visionarenecessarytoeffectivelymotivateaworkforceCh2-14Copyright2007PrenticeHallVision&MissionSharedvisioncreatesacommunityofinterestsCh2-15Copyright2007PrenticeHallDevelopingVision&MissionClearmissionisneededbeforealternativestrategiescanbeformulatedandimplementedCh2-16Copyright2007PrenticeHallDevelopingVision&MissionParticipationfromdiversemanagersisimportantindevelopingthemissionCh2-17Copyright2007PrenticeHallImportanceofMissionMissionResourceAllocationUnanimityofPurposeOrganizationalClimateFocalpointforwork

structureBenefitsfromastrongmissionCh2-18Copyright2007PrenticeHallBroadinscopeGeneratestrategicalternativesNotoverlyspecificReconcilesinterestsamongdiversestakeholdersFinelybalancedbetweenspecificity&generalityEffectiveMissionsCh2-19Copyright2007PrenticeHallArousepositivefeelings&emotionsMotivatereaderstoactionGeneratefavorableimpressionofthefirmEffectiveMissionsCh2-20Copyright2007PrenticeHallReflectfuturegrowthProvidecriteriaforstrategyselectionBasisforgenerating&evaluatingstrategicoptionsAredynamicinnatureEffectiveMissionsCh2-21Copyright2007PrenticeHallAnticipatescustomerneedsIdentifiescustomerneedsProvidesproduct/servicetosatisfyneedsMission&CustomerOrientationAnEffectiveMissionStatement--Ch2-22Copyright2007PrenticeHallAffectsdevelopmentofvision&mission

Responsibilitiesto–ConsumersEnvironmentalistsMinoritiesCommunitiesSocialPolicy&MissionManagerialphilosophyshapessocialpolicy--Ch2-23Copyright2007PrenticeHallSocialPolicy&MissionSocialpolicyshouldbeintegratedinallstrategic-managementactivitiesMissionshouldconveythesocialresponsibilityofthefirmCh2-24Copyright2007PrenticeHallMissionStatementsFannieMaeProctor&GambleIntelCorporationSt.PaulCompaniesGreenMtn.CoffeeDeere&Company2005RatedBestinSocialResponsibility

AvonProducts,Inc.Hewlett-PackardCo.AgilentTechnologiesEcolab,Inc.ImationCorpIBMCh2-25Copyright2007PrenticeHall2xaveragereturnonshareholder’sequityPositiverelationshiptocompanyperformance30%higherreturnoncertainfinancialmeasuresVision&MissionResearchresultsaremixed,however,firmswithformalmissionstatementsgenerallyseea:Ch2-26Copyright2007PrenticeHall

Mission

ElementsCustomersMarketsEmployeesPublicImageSelf-ConceptPhilosophySurvivalGrowthProfitProducts

ServicesTechnologyCh2-27Copyright2007PrenticeHallPepsiCoMissionPepsiCo’smissionistoincreasethevalueofourshareholders’investment.Wedothisthroughsalesgrowth,costcontrols,andwiseinvestmentresources.Webelieveourcommercialsuccessdependsuponofferingqualityandvaluetoourconsumersandcustomers;providingproductsthataresafe,wholesome,economicallyefficientandenvironmentallysound;andprovidingafairreturntoourinvestorswhileadheringtothehigheststandardsofintegrity.Ch2-28Copyright2007PrenticeHallBen&Jerry’sMissionBen&Jerry’smissionistomake,distributeandsellthefinestqualityall-naturalicecreamandrelatedproductsinawidevarietyofinnovativeflavorsmadefromVermontdairyproducts.TooperatetheCompanyonasoundfinancialbasisofprofitablegrowth,increasingvalueforourshareholders,andcreatingcareeropportunitiesandfinancialrewardsforouremployees.TooperatetheCompanyinawaythatactivelyrecognizesthecentralrolethatbusinessplaysinthestructureofsocietybyinitiatinginnovativewaystoimprovethequalityoflifeofabroadcommunity—local,nationalandinternational.Ch2-29Copyright2007PrenticeHallMissionStatementEvaluationMatrixCOMPONENTS

OrganizationCustomersProductsServicesMarketsConcernforSurvival,Growth,ProfitabilityTechnology

PepsiCoYesNoNoYesNoBen&Jerry'sNoYesYesYesNo

Ch2-30Copyright2007Pre

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