WEEK 2: Vision and Mission Analysis
MKAB 2283
STRATEGIC & CHANGE MANAGEMENT
Fakulti Kejuruteraan Awam
School of Civil Engineering
OUTLINES
Ice Breaking Session
Course Overview
Reflection
Assignment
innovative • entrepreneurial • global | www.utm.my 2
Vision and Mission
Analysis
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5-3
Learning Objectives
1. Describe the nature and role of vision statements in strategic
management.
2. Describe the nature and role of mission statements in strategic
management.
3. Discuss the process of developing a vision and mission statement.
4. Discuss how clear vision and mission statements can benefit other
strategic-management activities.
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5. Describe the characteristics of a good mission statement.
6. Identify the components of mission statements.
7. Evaluate mission statements of different organizations and write
effective vision and mission statements.
Vision Statement
A vision statement should answer the basic question:
“What do we want to become?”
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What Do We Want to Become?
The vision statement should be short, preferably
one sentence, and as many managers as possible
should have input into developing the statement.
The vision statement should reveal the type of
business the firm engages. 5-6
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NEW Vision Statement Interview
No Question Answers
.
Where and Why Have We Been
1
Successful In The Past?
What Should We Be Proud of
2
Our Organization?
7
What Is The Expectation Of Our:
▪ clients/customers?
3 ▪ funders?
▪ employers?
▪ employees?
Copyright by Dr Helen Tan
Vision Statement Examples
General Motors’ vision is to be the world leader in
transportation products and related services. (Author
comment: Good statement)
PepsiCo’s responsibility is to continually improve all
aspects of the world in which we operate—environment,
social, economic—creating a better tomorrow than today.
5-8
(Author comment: Statement is too vague; it should reveal
how the firm’s food and beverage business benefits people)
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Mission Statement
A declaration of an organization's “reason for being.”
It answers the pivotal question “What is our business?”
It is essential for effectively establishing objectives and
formulating strategies. 5-9
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Mission Statement
It reveals what an organization wants to be and whom it wants to
serve
It is also called a creed statement, a statement of purpose, a
statement of philosophy, a statement of beliefs, and a statement of
business principles 5-10
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A Comprehensive Strategic-Management Model
Strategy Formulation
Where do we want to be?
Vision
Mission
Values
5-11
Goals
Objectives
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Developing Vision & Mission Statements
A widely used approach includes:
• Select several articles about these statements and ask all managers
to read these as background information.
• Ask managers themselves to prepare a vision and mission statement
for the organization.
• A facilitator or committee of top managers should then merge these
statements into a single document and distribute the draft statements
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to all managers.
• A request for modifications, additions, and deletions is needed next,
along with a meeting to revise the document.
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Importance of Vision and
Mission Statements
• To make sure all employees/managers understand the firm’s purpose or
reason for being.
• To provide a basis for prioritization of key internal and external factors
utilized to formulate feasible strategies.
• To provide a basis for the allocation of resources.
• To provide a basis for organizing work, departments, activities, and
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segments around a common purpose.
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VISION
Vision without Action is a Daydream
Action without Vision is a Nightmare
• Not Optional
• Stretch – 30+ Years
• 8-10 Words in length
• Future State
• Brief and Memorable
Benefits of Having a Clear Mission and Vision
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Characteristics of a Mission Statement
A good mission statement allows for the generation
and consideration of a range of feasible alternative
objectives and strategies without unduly stifling
management creativity.
A mission statement needs to be broad to reconcile
differences effectively among, and appeal to, an
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organization's diverse stakeholders
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Characteristics of a Mission Statement
Stakeholders
include employees, managers, stockholders,
boards of directors, customers, suppliers,
distributors, creditors, governments (local, state,
federal, and foreign), unions, competitors,
environmental groups, and the general public.
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Characteristics of a Mission Statement
1. Broad in scope; does not include monetary amounts,
numbers, percentages, ratios, or objectives
2. Fewer than 150 words in length
3. Inspiring
4. Identifies the utility of a firm’s products
5. Reveals that the firm is socially responsible
6. Reveals that the firm is environmentally responsible
7. Includes nine components: customers, products or
services, markets, technology, concern for
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survival/growth/profits, philosophy, self-concept, concern
for public image, concern for employees
8. Reconciliatory
9. Enduring
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A Customer Orientation
A mission statement should:
• Define what the organization is and what the organization
aspires to be
• be limited enough to exclude some ventures and broad enough
to allow for creative growth
• distinguish a given organization from all others
• serve as a framework for evaluating both current and
prospective activities
• be stated in terms sufficiently clear to be widely understood
throughout the organization
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Considerations
• Do not offer me clothes. Offer me attractive looks.
• Do not offer me shoes. Offer me comfort for my feet and the
pleasure of walking.
• Do not offer me a house. Offer me security, comfort, and a place
that is clean and happy.
• Do not offer me books. Offer me hours of pleasure and the
benefit of knowledge. 5-20
• Do not offer me CDs. Offer me leisure and the sound of music.
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Mission Statement Components
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?
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5. Survival, growth, and profitability—Is the firm
committed to growth and financial soundness?
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Mission Statement Components
6. Philosophy—What are the basic beliefs, values,
aspirations, and ethical priorities of the firm?
7. Self-concept (distinctive competence)—What is the
firm’s major competitive advantage?
8. Public image—Is the firm responsive to social,
community, and environmental concerns?
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9. Employees—Are employees a valuable asset of the
firm?
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Example Mission Statements
PepsiCo
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,
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openness, fairness and integrity (6).
Author comment: Statement lacks three components:
Customers (1), Technology (4), and Distinctive
Competence (7); 62 words
Example Mission Statements
Royal Caribbean
We are loyal to Royal Caribbean and Celebrity and strive for
continuous improvement in everything we do. We always provide
service with a friendly greeting and a smile (7). We anticipate the
needs of our customers and make all efforts to exceed our
customers’ expectations. We take ownership of any problem that is
brought to our attention. We engage in conduct that enhances our
corporate reputation and employee morale (9). We are committed
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to act in the highest ethical manner and respect the rights and
dignity of others (6).
Author comment: Statement lacks six components: Customers (1),
Products/Services (2), Markets (3), Technology (4),
Survival/Growth/Profits (5), and Public Image (8); 86 words
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Exemplary Proposed Mission Statement
Avon
Our mission is to provide women (1) quality fragrances, cosmetics,
and jewelry (2) at reasonable prices backed by outstanding customer
service provided by our thousands of door-to-door sales
representatives (7, 9) operating globally (3). We use the latest
technology (4) to profitably develop and market products desired by
women all over the world (5). Avon representatives put integrity first
(6) in setting a good example in every community (8) they operate—as
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they sell beauty. (58 words)
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Exemplary Proposed Mission Statement
L’Oreal
Our mission is to design, produce, and distribute the world’s
best fragrances, perfumes, and personal care products (2) to
women, men, and children (1) by utilizing the latest
technological improvements (4). We empower our highly
creative team of researchers to develop safe, eco-friendly (7)
products that will enable our firm to profitably grow (5) through
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thousands of retail outlets. We strive to be one of the most
socially responsible (8) firms on the planet (3) and appreciate
our employees (9) making that happen, while following the
“golden rule” in all that we do (6). (85 words)
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Assignment?
Old Vision Statement
Write Here
“XXX”
FOR INTERNAL USE ONLY – EXTERNAL DISTRIBUTION IS STRICTLY PROHIBITED AND MAY INCUR LIABILITY
14/5/2023 COPYRIGHT OF DR HELEN TAN 5-29
NEW Vision Statement Interview
No. Question Answers
Where and Why Have We Been
1
Successful In The Past?
What Should We Be Proud of Our
2
Organization?
What Is The Expectation Of Our:
▪ clients/customers?
3 ▪ funders?
▪ employers?
▪ employees?
Vision:Where and Why Have We Been Successful In The Past?
write a VERY COMPELLING statement on what the organization COULD and SHOULD BECOME in
the next 5 or 10 years
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14/5/2023 COPYRIGHT OF DR HELEN TAN
Vision Statement
A vision statement should answer the basic question:
(characteristics of a good vision: aligned to mission & values, balances internal and external elements, appeal to all stakeholders
and inspirational)
“What do we want to become?”
<< write here >>
FOR INTERNAL USE ONLY – EXTERNAL DISTRIBUTION IS STRICTLY PROHIBITED AND MAY INCUR LIABILITY 5-31
14/5/2023 COPYRIGHT OF DR HELEN TAN
Old Mission Statement
Write Here
“XXX”
FOR INTERNAL USE ONLY – EXTERNAL DISTRIBUTION IS STRICTLY PROHIBITED AND MAY INCUR LIABILITY 5-32
14/5/2023 COPYRIGHT OF DR HELEN TAN
1. Who are we?
2. What basic social needs or problems do we
exist to meet?
3. How do we recognize and respond to these
needs and problems?
4. How should we respond to our key
stakeholders?
5. What is our guiding philosophy and culture?
6. What makes us distinctive or unique?
simplified mission statement template
WE exist to (primary purpose, need served, or problem solved):
For (primary clients or customer):
In order to (core services offered):
So that (long term outcomes determining success):
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14/5/2023 COPYRIGHT OF DR HELEN TAN
STRATEGY PLAN CONSTRUCTION 4.0
T R I P L E
Strategic Plan (Talent) (Resilient) (Information (Politics) (Legal) (Economic)
Technology)
Where are we now
(Discussion 2)
Where do we want
to be?
(Discussion 3)
How do we plan to
get there
(Discussion 4)
