The Business Mission

1. The Business Mission Strategic Management Professor Sayed Elsayed-Elkhouly

2. Vision & Mission Vision is the art of seeing things invisible -- Jonathan Swift The very essence of leadership is that you have to have vision. You can’t blow an uncertain trumpet. -- Theodore Hesburgh

3. Vision Management and executive agreement on the basic vision for which the firm strives to achieve in the long run is critically important.

4. Vision Vision statement answers the question: “What do we want to become?”

5. Vision Clear vision • Provides foundation for comprehensive mission statement

6. Vision & Mission • Vision statement developed first • Short – preferably one sentence • Broad management involvement

7. Vision Statements The Vision of the National Pawnbrokers Association is to have complete and vibrant membership that enjoys a positive public and political image and is the focal organization of all pawn associations. --National Pawnbrokers Association

8. Vision Statements The Bellevue Hospital is the LEADER in providing resources necessary to realize the community’s highest level of HEALTH throughout life. --The Bellevue Hospital

9. Vision Statements 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.

10. Vision Statements It is the vision of the California Energy Commission for Californians to have energy choices that are affordable, reliable, diverse, safe, and environmentally acceptable. --California Energy Commission

11. Mission Statements Recent Data indicate that: • 90% of all companies have used a mission statement sometime in the previous five years.

12. Mission Statements Mission statement answers the question: “What is our business?”

13. Mission Statements Mission Statement: • Enduring statement of purpose • Distinguishes one organization from another in similar enterprises • Declaration of an organization’s “reason for being”

14. Mission Statements Mission Statements also referred to as: • Creed statement • Statement of purpose • Statement of philosophy • Statement of business principles

15. Mission Statements Mission Statements • Reveal what an organization wants to be and whom it wants to serve

16. Mission Statements Mission Statements • Essential for effectively establishing objectives and formulating strategies

17. Vision and Mission • Many organizations develop both vision and mission statements • Profit and vision are necessary to effectively motivate a workforce • Shared vision creates a commonality of interests

18. Developing Vision & Mission • Clear mission is needed before alternative strategies can be formulated and implemented • Important to have as broad range of participation as possible among managers in developing the mission

19. Mission Statements Mission Statement “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.”

20. Mission Statements The Mission of USGS is to serve the Nation by providing reliable scientific information to • Describe and understand the Earth; • Minimize loss of life and property from natural disasters; • Manage water, biological, energy, and mineral resources; and enhance and protect our quality of life.

21. Mission Statements “It is the California Energy Commission’s mission to assess, advocate, and act through improve energy systems that promote a strong economy and a healthy environment.”

22. Importance of Mission • Unanimity of purpose within the organization • Basis for allocating resources • Establish organizational climate • Focal point for direction • Translate objectives into work structure • Cost, time and performance parameters assessed and controlled

23. Mission Characteristics Effective mission statements: • Broad in scope • Generate range of feasible strategic alternatives • Not excessively specific • Reconcile interests among diverse stakeholders • Finely balanced between specificity & generality

24. Mission Characteristics Effective mission statements: • Arouse positive feelings and emotions • Motivate readers to action • Generate the impression that firm is successful, has direction, and is worthy of time, support, and investment

25. Mission Characteristics Effective mission statements: • Reflect judgments re: future growth • Provide criteria for selecting strategies • Basis for generating & screening strategic options • Are dynamic in orientation

26. Customer Orientation According to Vern McGinnis, mission should: • Define what the organization is • Define what the organization aspires to be • Limited to exclude some ventures • Broad enough to allow for creative growth • Distinguish the firm from all others • Serve as framework to evaluate current activities • Stated clearly so that it is understood by all

27. Customer Orientation A good mission statement reflects the anticipations of customers. • Identify customer needs • Provide product/service to satisfy needs • AT&T’s mission focuses on communications, not telephones • Exxon’s mission focuses on energy, not on oil and gas

28. Social Policy & Mission Managerial philosophy and thinking at the highest levels in the organization reflect social policy. • Affects development of vision & mission • Responsibilities to consumers, environmentalists, minorities, communities, & other groups

29. Social Policy & Mission • Social policy should be integrated in all strategic-management activities. • Mission statement is an effective instrument for conveying the social responsibility of the firm.

30. Components of Mission Mission statements vary in… • Length • Content • Format • Specificity Must include the 9 elements, as the mission statement is the most public and visible part of the strategic-management process.

31. Mission Components • Customers • Products or services • Markets • Technology • Survival, growth, and profitability • Philosophy • Self-concept • Concern for public image • Concern for employees

32. Components of Mission Components of mission and corresponding questions to be answered: • Customers: • “Who are the firm’s customers?” • Products or services: • “What are the firm's major products or services?”

33. Components of Mission • Markets: • “Geographically, where does the firm compete?” • Technology: • “Is the firm technologically current?”

34. Components of Mission • Concern for survival, growth, and profitability: • “Is the firm committed to growth and financial soundness?” • Philosophy: • “What are the basic beliefs, values, aspirations, and ethical priorities of the firm?”

35. Components of Mission • Self-concept: • “What is the firm’s distinctive competence or major competitive advantage?” • Concern for public image: • “Is the firm responsive to social, community, and environmental concerns?” • Concern for employees: • “Are employees a valuable asset of the firm?”

36. Importance of Vision & Mission Although research results are mixed, firms with formal mission statements… • 2X average return on shareholder’s equity • Positive relationship to organizational performance • 30% higher return on certain financial measures

37. PepsiCo Mission Statement 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.

38. Ben & Jerry’s Mission Statement 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.

39. Evaluation Matrix of Mission Statements

40. Evaluation Matrix of Mission Statements

41. Concern for Employees Concern for Public Image Concern for Survival, Growth, and Profitability Creed Statement Key Terms & Concepts

42. Customers Markets Mission Statement Components Philosophy Key Terms & Concepts

43. Self-Concept Social Policy Stakeholders Vision Statement Key Terms & Concepts