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Learning Objectives
At the end of the discussion, the students are expected to:
1. Describe the nature and role of vision and mission statements
in strategic management.
2. Identify the elements of vision and components of a mission
statements.
3. Evaluate mission statements of different organizations and to
write good vision and mission statements.
4. Differentiate financial versus strategic objectives.
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What is vision?
an inspirational statement of what the organizations
hope to achieve at some point in the future.
the ability to move the organisation forward in a
significant way beyond the current environment.
CHARACTERISTICS OF AN EFFECTIVE WORDED STRATEGIC VISION
GRAPHIC Market position
DIRECTIONAL Forward-looking; strategic course
FOCUSED Guide in decision making and resource allocation
FLEXIBLE Maybe adjusted to all changes or circumstances
FEASIBLE Within the scope achievable to the organization
DESIRABLE Rouse long term interest for…
EASY TO
COMMUNICATE
Explainable in 5-10 minutes
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COMMON SHORTCOMINGS OF VISION STATEMENT
VAGUE OR INCOMPLETE Short on specifics
NOT FORWARD LOOKING Fails to indicate the focus of the company
TOO BROAD Umbrella like; headed on many directions
BLAND OR UNINSPIRING No power to motivate
NOT DISTINCTIVE No company identity
TOO RELIANT ON
Does not say anything specific but accolades as best
SUPERLATIVES
Expressing Vision on Slogan
• Levi Strauss & Company:
“We will clothe the world by marketing the most appealing
and widely worn casual clothing in the world”
• Nike:
“To bring innovation and inspiration to every athlete in the
world”
• Ford:
“A car in every garage.”
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KEY ELEMENTS EXPLANATION IDENTIFICATION
Company focus
Focus/Main
Product/service
Theme (to whom)
Employee performance
Goal
Hopes/Aspirations
Objective
Superlative
Focus in the future
Implied future state
Expression of Extent
values/worth Range
Vision Statement Examples
• Tyson Foods
To be the world’s first choice for protein solutions while maximizing shareholder
value.
KEY ELEMENTS EXPLANATION IDENTIFICATION
Company focus
Focus/Main Theme (to whom) Product/service Protein solutions
Employee performance
Goal
Hopes/Aspirations Maximize shareholder value
Objective
Superlative
Focus in the future First choice
Implied future state
Extent
Expression of values/worth World
Range
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Vision Statement Examples
• General Motors
To be the world leader in transportation products and related
services.
• PepsiCo
To continually improve all aspects of the world in which we
operate-environment, social, economic-creating a better
tomorrow than today.
• Dell
To create a company culture where environmental excellence is
second nature
Vision Statement Examples
• Samsonite
To provide innovative solutions for the travelling world.
• Royal Caribbean
To empower and enable our employees to deliver the best
vacation experience for our guests, thereby generating superior
returns for our shareholders and enhancing the well-being of
our communities.
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Benefits of a clear Vision Statement
It give a clear view or executives view of its long term
direction
Reduces risk of rudderless decision making.
A tool for realization of objectives thru organization
support.
Serves as a beacon for lower-level management
Helps in preparation in the future.
What is Mission?
defines the current purpose of an organization
it answers what the organization does, for whom it is
done and how to do what needs to be done.
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What is Mission?
Mission Statement Components
1. Customers
2. Products or services
3. Markets
4. Technology
5. Concern for survival, growth, and profitability
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees
Characteristics of a Mission Statement
Broad in scope; do not include monetary amounts, numbers,
percentages, ratios or objectives.
Less than 250 words in length
Inspiring
Identify the utility of a firm’s products.
Reveal that the firm is socially responsible.
Reveal that the firm is environmentally responsible.
Include nine components
Reconciliatory
Enduring
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Ten Benefits of Having a Clear Mission and Vision
1. Achieve clarity of purpose among all managers and
employees.
2. Provide a basis for all other strategic planning.
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.
Ten Benefits of Having a Clear Mission and Vision
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.
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COMPONENTS EXPLANATION IDENTIFICATION
1 Customers Who are the firm’s customers?
2 Products or services What are the firm’s major products or services?
3 Markets Geographically, where does the firm compete?
4 Technology Is the firm technologically current?
Concern for growth, and Is the firm committed to growth and financial
5 profitability soundness?
What are the basic beliefs, values, aspirations,
6 Philosophy and ethical priorities of the firm?
What is the firm’s distinctive competence or
7 Self-concept major competitive advantage?
Is the firm responsive to social, community, and
8 Concern for public image environmental concerns?
9 Concern for employees Are employees a valuable asset of the firm?
PepsiCo Mission
We aspire to make PepsiCo the world’s (3) premier consumer
products company, focused on convenient foods and
beverages (2). We seek to produce healthy financial rewards
for investors (5) as we provide opportunities for growth and
enrichment to our employees (9), our business partners and
the communities (8) in which we operate. And in everything
we do, we strive to act with honesty, openness, fairness and
integrity (6).
(Author comment: Statement lacks three components: Customers,
Technology, and Self-Concept)
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COMPONENTS EXPLANATION IDENTIFICATION
1 Customers Who are the firm’s customers? -
premier consumer products company,
2 Products or services What are the firm’s major products or services?
focused on convenient foods and beverages
3 Markets Geographically, where does the firm compete? World’s
4 Technology Is the firm technologically current? -
Concern for growth, and Is the firm committed to growth and financial to produce healthy financial rewards for
5 soundness? investors
profitability
What are the basic beliefs, values, aspirations, we strive to act with honesty, openness,
6 Philosophy and ethical priorities of the firm? fairness and integrity
What is the firm’s distinctive competence or
7 Self-concept major competitive advantage?
-
Is the firm responsive to social, community, and opportunities for growth and enrichment to
8 Concern for public image environmental concerns? our business partners and the communities
opportunities for growth and enrichment to
9 Concern for employees Are employees a valuable asset of the firm?
our employees
ORGANIZATION OBJECTIVE
a top-down process that must extend to the lowest
organizational levels
How much of what kind of performance is expected, and by
when?
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Financial Objectives vs. Strategic Objectives
Financial Objectives – relate to the financial performance
targets that the management has established for
the organization to achieve.
Strategic Objectives – relate to target outcomes that
indicate a company strengthening its market
standing, competitive vitality and future business
prospects.
Activity #2
Procter & Gamble Mission
Procter & Gamble will provide branded products and services
of superior quality and value that improve the lives of the
world’s consumer’s. As a result, consumers will reward us with
industry leadership in sales, profit, and value creation,
allowing our people, our shareholders, and the communities
in which we live and work to prosper.
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Learning Objectives
At the end of the discussion, the students are expected to:
1. Described the nature and role of vision and mission statements
in strategic management.
2. Identified the elements of vision and components of a mission
statements.
3. Evaluated mission statements of different organizations and to
write good vision and mission statements.
4. Differentiated financial versus strategic objectives.
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