Download - PPT CH 02 10th ed
-
8/14/2019 PPT CH 02 10th ed
1/43
Ch 2 -1
Chapter 2The Business Vision & Mission
Strategic Management:Concepts & Cases
10th
EditionFred David
Stolen from:4AAC Batch 2008) Yahoogroups
-
8/14/2019 PPT CH 02 10th ed
2/43
Ch 2 -2
Chapter Outline
What do we want to become?
What is our business?
Importance of Vision and Mission Statements
-
8/14/2019 PPT CH 02 10th ed
3/43
Ch 2 -3
Chapter Outline ( contd )
Characteristics of a mission statement
Components of a mission statement
Writing & evaluating mission statements
-
8/14/2019 PPT CH 02 10th ed
4/43
Ch 2 -4
The last thing IBM needs right now is avision. (July 1993)
Vision
What IBM needs most right now is avision. (March 1996)
-- Louis V. Gerstner, Jr., CEO, IBM Corporation
-
8/14/2019 PPT CH 02 10th ed
5/43
Ch 2 -5
Vision
Agreement on the basic vision for which thefirm strives to achieve in the long run iscritically important to the firms success.
-
8/14/2019 PPT CH 02 10th ed
6/43
Ch 2 -6
What do we want to become?
Vision
-
8/14/2019 PPT CH 02 10th ed
7/43
Ch 2 -7
ComprehensiveMission Statement
Vision
Clear BusinessVision
-
8/14/2019 PPT CH 02 10th ed
8/43
Ch 2 -8
Shared Vision --
Creates commonality of interestsReduce daily monotonyProvides opportunity & challenge
Vision & Mission
-
8/14/2019 PPT CH 02 10th ed
9/43
Ch 2 -9
A national organization which represents itsmembers in all aspects of poultry and eggson both a national and international level.
Vision Statement Examples
-- U.S. Poultry & Egg Association
-
8/14/2019 PPT CH 02 10th ed
10/43
Ch 2 -10
The Vision of Manley Baptist Church is to bethe people of God, on mission with God,motivated by a love for God, and a love forothers.
Vision Statement Examples
-- Manley Baptist Church
-
8/14/2019 PPT CH 02 10th ed
11/43
Ch 2 -11
The Vision of USGS is to be a world leader inthe natural sciences through our scientificexcellence and responsiveness to societysneeds.
Vision Statement Examples
-- U.S. Geological Survey (USGS)
-
8/14/2019 PPT CH 02 10th ed
12/43
Ch 2 -12
To be the first choice in the printed
communications business. The first choice isthe best choice, and being the best is whatAtlanta Web pledges to work hard at being every day !
Vision Statement Examples
-- Atlanta Web Printers, Inc.
-
8/14/2019 PPT CH 02 10th ed
13/43
Ch 2 -13
-- 90% of all companies have used amission statement in the previous fiveyears.
Mission Statements
-
8/14/2019 PPT CH 02 10th ed
14/43
Ch 2 -14
What is our business?
Mission Statement
-
8/14/2019 PPT CH 02 10th ed
15/43
Ch 2 -15
Mission Statements
Enduring statement of purpose
Distinguishes one firm from another
Declares the firms reason for being
-
8/14/2019 PPT CH 02 10th ed
16/43
Ch 2 -16
Mission Statements
Creed statement
Statement of purpose
Statement of philosophy
Statement of business principles
Also referred to as:
-
8/14/2019 PPT CH 02 10th ed
17/43
Ch 2 -17
Reveal what an organization wants to be
and whom it wants to serve
Mission Statements
-
8/14/2019 PPT CH 02 10th ed
18/43
Ch 2 -18
Essential for effectively establishing
objectives and formulating strategies .
Mission Statements
-
8/14/2019 PPT CH 02 10th ed
19/43
Ch 2 -19
Vision & Mission
Many organizations develop bothvision & mission statements.
-
8/14/2019 PPT CH 02 10th ed
20/43
Ch 2 -20
Vision & Mission
Profit & vision are necessary to effectivelymotivate a workforce
-
8/14/2019 PPT CH 02 10th ed
21/43
Ch 2 -21
Vision & Mission
Shared vision creates a community ofinterests
-
8/14/2019 PPT CH 02 10th ed
22/43
Ch 2 -22
Developing Vision & Mission
Clear mission is needed before alternativestrategies can be formulated andimplemented
-
8/14/2019 PPT CH 02 10th ed
23/43
Ch 2 -23
Developing Vision & Mission
Participation from diverse managers isimportant in developing the mission.
-
8/14/2019 PPT CH 02 10th ed
24/43
Ch 2 -24
It is the California Energy Commissionsmission to assess, advocate, and act tothrough public/private partnerships to improveenergy systems that promote a strongeconomy and healthy environment
Mission Statement Examples
-- California Energy Commission
-
8/14/2019 PPT CH 02 10th ed
25/43
Ch 2 -25
The Bellevue Hospital, with respect,compassion, integrity, and courage, honors the
individuality and confidentiality of our patients,employees, and community, and is progressivein anticipating and providing future health careservices.
Mission Statement Examples
-- The Bellevue Hospital
-
8/14/2019 PPT CH 02 10th ed
26/43
-
8/14/2019 PPT CH 02 10th ed
27/43
Ch 2 -27
Importance of Mission
MissionResource Allocation
Unanimity of Purpose
Organizational Climate
Focal point for workstructure
Benefits from a strong mission
-
8/14/2019 PPT CH 02 10th ed
28/43
Ch 2 -28
Broad in scope
Generate strategicalternatives
Not overly specific
Reconciles interests amongdiverse stakeholders
Finely balanced betweenspecificity & generality
Effective Missions
-
8/14/2019 PPT CH 02 10th ed
29/43
Ch 2 -29
Arouse positive feelings &emotions
Motivate readers to action
Generate favorableimpression of the firm
Effective Missions
-
8/14/2019 PPT CH 02 10th ed
30/43
Ch 2 -30
Reflect future growth
Provide criteria for strategyselection
Basis for generating &evaluating strategic options
Are dynamic in nature
Effective Missions
-
8/14/2019 PPT CH 02 10th ed
31/43
Ch 2 -31
Define what the organization isDefine what it aspires to be
Limited to exclude some ventures
Mission & CustomerOrientation Vern McGinnis
Broad enough to allow for growthDistinguishes firm from all others
Stated clearly understood by all
-
8/14/2019 PPT CH 02 10th ed
32/43
Ch 2 -32
Anticipates customer needsIdentifies customer needsProvides product/service to satisfy needs
Mission & CustomerOrientation
An Effective Mission Statement --
-
8/14/2019 PPT CH 02 10th ed
33/43
Ch 2 -33
Affects development of vision & mission
Responsibilities to ConsumersEnvironmentalistsMinorities
Communities
Social Policy & Mission
Managerial philosophy shapes social policy --
-
8/14/2019 PPT CH 02 10th ed
34/43
Ch 2 -34
Social Policy & Mission
Social policy should be integrated in allstrategic-management activities.
Mission should convey the socialresponsibility of the firm
-
8/14/2019 PPT CH 02 10th ed
35/43
Ch 2 -35
Mission Statements
1. Alexander & Baldwin
2. Johnson & Johnson
3. American Express
4. Altria Group
5. United Parcel Service
2003 Rated Best in Social Responsibility(Wall Street Journal)
6. BP America
7. Procter & Gamble
8. Administaff
9. Medtronic
10. Merck
-
8/14/2019 PPT CH 02 10th ed
36/43
Ch 2 -36
2x average return on shareholders equity Positive relationship to company performance30% high return on certain financial measures
Vision & Mission
Research results are mixed, however,firms with formal mission statements --
-
8/14/2019 PPT CH 02 10th ed
37/43
Ch 2 -37
MissionElements
CustomersMarkets
Employees
PublicImageSelf-Concept Philosophy
SurvivalGrowthProfit
ProductsServices
Technology
-
8/14/2019 PPT CH 02 10th ed
38/43
Ch 2 -38
PepsiCo Mission
PepsiCos mission is to increase the value of ourshareholders investment. We do this through salesgrowth, cost controls, and wise investmentresources. We believe our commercial success
depends upon offering quality and value to ourconsumers and customers; providing products thatare safe, wholesome, economically efficient andenvironmentally sound; and providing a fair return to
our investors while adhering to the higheststandards of integrity.
-
8/14/2019 PPT CH 02 10th ed
39/43
-
8/14/2019 PPT CH 02 10th ed
40/43
Ch 2 -40
Mission Statement Evaluation Matrix
COMPONENTS
Organizat ion Customers
Produc ts
Services Markets
Concern fo rSurvival ,Growth ,
Profi tabi l i ty Technology
PepsiCo Yes No No Yes No
Ben & Jerry's No Yes Yes Yes No
-
8/14/2019 PPT CH 02 10th ed
41/43
Ch 2 -41
Mission Statement Evaluation Matrix
COMPONENTS
Organizat ion Phi losophy Self- Concept Concern forPubl ic Image Concern forEmployees
PepsiCo Yes No No No
Ben & Jerry's No Yes Yes Yes
-
8/14/2019 PPT CH 02 10th ed
42/43
Ch 2 -42
Key Terms & Concepts
For Review (Chapter 2)
Concern for Employees Customers
Concern for Public Image Markets
Survival, Growth, &
Profitability
Mission Statement
Components
Creed Statement Managerial Philosophy
-
8/14/2019 PPT CH 02 10th ed
43/43
Ch 2 -43
Key Terms & Concepts
For Review (Chapter 2)
Self Concept Stakeholders
Social Policy Vision Statement