Chap 2 the Business Mission

7/23/2019 Chap 2 the Business Mission

1/27


2/27

Copyright 2013 Pearson Education

Chapter Objectives

2-2

Describe the nature and role of vision and missionstatements in strategic management.

Discuss why the process of developing a missionstatement is as important as the resulting document.

Identify the components of mission statements.

Discuss how clear vision and mission statements canbenefit other strategic-management activities.

Evaluate mission statements of different organizations.

Write good vision and mission statements.


3/27


What we want to Become?

2-3

Avision statement should answer the basic question!What do we want to become"

#he vision statement should be short preferably one

sentence and as many managers as possible should haveinput into developing the statement.

Eg. I$% &orporation 'erhad (ision )tatement*

!#o be an internationally competitive %alaysian builderof world class infrastructure and buildings+


4/27


2-4

%en,adian i#% sebagai universiti yangunggul yang berterasan esar,anaan danecemerlangan aademi bagu menera,uidinamisme bumiputera dalam semua bidang

yang terdapat di i#% menerusi programprofessional bertaraf dunia supaya terlahirgraduan yang berdaya saing global danberetia.

#o establish i#% as a premier university of

outstanding scholarship and academice/cellence capable of providing leadership to'umiputeras0s dynamic involvement in allprofessional fields of world-class standards inorder to produce globally competitive

graduates of sound ethical standing.

Eg: UiTM Vision


5/27


Statement

2-5


6/27


What Is Or Bsiness?

2-6

Mission statement

a declaration of an organization0s !reason for being.+

answers the pivotal question !What is our business"+

essential for effectively establishing ob,ectives and

formulating strategies Eg. I$% &orporation 'erhad mission statement*

! #o deliver the highest standards of performancein all our ventures with the I$% mar ofe/cellence+


7/27Copyright 2013 Pearson Education

Statement

2-7

reveals what an organizationwants to be and whom it wantsto serve

Also called a creed statement astatement of purpose astatement of philosophy astatement of beliefs and a

statement of business principles



2-8

%empertingatan eilmuan dan epaaranbumiputera di i#% dalam semua bidang menerusipenyampaian program professional penyelidianserta penglibatan ativiti emasyaraatan yangberlandasan epada nilai-nilai murni dan etiaeprofesionalan.

#o enhance the nowledge and e/pertise of

'umiputeras in all fields of study throughprofessional programs research wor andcommunity service based on moral values andprofessional ethics.

Eg: UiTM Mission



! Comprehensive Strategic"Management Mo#e$

2-9



Vision verss Mission

2-10

Share# visionwould be able to*

&reates a commonality ofinterests

1educe monotony of daily wor

2rovides opportunity andchallenge.



Vision % Mission Statements :The &rocess

2-11

A widely used approach to develop vision and missionstatement is to*

)elect several articles about these statements and as allmanagers to read these as bacground information.

As managers themselves to prepare a vision and missionstatement for the organization.

%erge these statements into a single document anddistribute the draft statements to all managers

2rocess should create an !emotional bond+ and !sense ofmission+ between the organization and its employees



2-12

3. #o ensure unanimity of purpose within the organization

4. #o provide a basis or standard for allocating organizationalresources

5.#o establish a general tone or organizational climate

6. #o serve as a focal point for individuals to identify with theorganization0s purpose and direction

7. #o facilitate the translation of ob,ectives into a worstructure

8. #o specify organizational purposes

Vision % Mission Statements :



Bene'its o' (aving a C$earMission an# Vision

2-13



) Characteristics o' a MissionStatement

2-14

A good mission statement allows for the generation andconsideration of a range of feasible 9realistic: alternative

ob,ectives and strategies without overly stifling 9prevent:management creativity.

A mission statement needs to be broad to effectively reconciledifferences among and appeal to an organization0s diverse

staeholders the individuals and groups of persons whohave a special stae or claim on the company.

Arouses positive feelings and emotions about anorganization motivates reader to action. %ust less than

4;; words

*ec$aration o' !ttit#e : + reasons



2-15

A mission statement should*define what the organization is and what the organization aspires to be

be limited enough to e/clude some ventures and broad enough to allow forcreative growth

distinguish a given organization from all others

serve as a framewor for evaluating both current and prospective activities

be stated in terms sufficiently clear to be widely understood throughout theorganization

Characteristics o' a MissionStatement

! Cstomer Orientation * identify thecustomers0 needs and then to provide a productor service to fulfill those needs



Cont:! Cstomer Orientation

2-16

A good mission statement reflects the anticipations of customers.

#he operating philosophy of organizations should be to identifycustomers0 needs and then provide a product or service to fulfill thoseneeds.



2-17


! *ec$aration o' Socia$ &o$ic,

Social policy embrace managerial philosophy and thining at thehighest levels of an organization.



Mission Statement:Components

2-18

-. Cstomers=Who are the firm0scustomers"

+. &ro#cts or services=Whatare the firm0s ma,or products or

services"). Mar/ets=>eographically where

does the firm compete"

0. Techno$og,=Is the firmtechnologically current"



2-19

1. Concern 'or srviva$2growth2 an# pro'itabi$it,=Isthe firm committed to growthand financial soundness"

3. &hi$osoph,=What are the basicbeliefs values aspirations andethical priorities of the firm"

4. Se$'"concept=What is thefirm0s distinctive competence orma,or competitive advantage"




2-20

5. Concern 'or pb$ic image=Is the firm responsive to socialcommunity and environmental

concerns"6. Concern 'or emp$o,ees=

Are employees a valuable assetof the firm"


Ch t i ti ' Mi i




2-21


22/27


E7amp$e:Mission Statements

2-22


23/27


2-23

We aspire to mae 2epsi&o the world0s 95: premier consumer productscompany focused on convenient foods and beverages 94:. We see toproduce healthy financial rewards for investors 97: as we provideopportunities for growth and enrichment to our employees 9@: our

business partners and the communities 9: in which we operate. And ineverything we do we strive to act with honesty openness fairness andintegrity 98:.



24/27


2-24

Dell0s mission is to be the most successful computer company 94: in theworld95: at delivering the best customer e/perience in marets we serve93:. In doing so Dell will meet customer e/pectations of highest qualityBleading technology 96:B competitive pricingB individual and companyaccountability 98:B best-in-class service and support 9?:B fle/ible

customization capability 9?:B superior corporate citizenship 9:Bfinancial stability 97:.



25/27


2-25

2rocter C >amble will provide branded products and services ofsuperior quality and value 9?: that improve the lives of the world0s 95:consumers. As a result consumers 93: will reward us with industryleadership in sales profit 97: and value creation allowing our people

9@: our shareholders and the communities 9: in which we live andwor to prosper.



26/27


2-26

At 0real we believe that lasting business success is built upon ethical98: standards which guide growth and on a genuine sense ofresponsibility to our employees 9@: our consumers our environmentand to the communities in which we operate 9:.



27/27

2-

27

Chap 2 the Business Mission

Documents

Transcript of Chap 2 the Business Mission