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    The Nature of Strategic Maanement Chapter2

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    The document discusses the importance of vision and mission statements for strategic management. It provides guidelines for developing vision and mission statements, including having managers provide input and revising draft statements. An effective vision statement answers what the organization wants to become while the mission statement defines its business and reason for existence. Key components of mission statements are identified such as customers, products, and commitment to growth. Clear vision and mission statements help ensure organizational coordination and focus.

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    The Nature of Strategic Maanement Chapter2

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    24 views17 pages
    The document discusses the importance of vision and mission statements for strategic management. It provides guidelines for developing vision and mission statements, including having managers provide input and revising draft statements. An effective vision statement answers what the organization wants to become while the mission statement defines its business and reason for existence. Key components of mission statements are identified such as customers, products, and commitment to growth. Clear vision and mission statements help ensure organizational coordination and focus.

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    The document discusses the importance of vision and mission statements for strategic management. It provides guidelines for developing vision and mission statements, including having managers provide input and revising draft statements. An effective vision statement answers what the organization wants to become while the mission statement defines its business and reason for existence. Key components of mission statements are identified such as customers, products, and commitment to growth. Clear vision and mission statements help ensure organizational coordination and focus.

    Copyright:

    © All Rights Reserved
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    Download as pptx, pdf, or txt
    24 views17 pages

    The Nature of Strategic Maanement Chapter2

    Uploaded by

    joann paura
    The document discusses the importance of vision and mission statements for strategic management. It provides guidelines for developing vision and mission statements, including having managers provide input and revising draft statements. An effective vision statement answers what the organization wants to become while the mission statement defines its business and reason for existence. Key components of mission statements are identified such as customers, products, and commitment to growth. Clear vision and mission statements help ensure organizational coordination and focus.

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    You are on page 1of 17

    Part 2: Strategy Formulation

    THE BUSINESS VISION


    AND MISSION

    by: JOCELYN ANN PAURA


    Strategic Management
    Chapter Objectives
     1. Describe the nature and role of vision and
    mission statements in strategic management.
     2. Discuss why the process of developing a
    mission statement is as important as the resulting
    document.
     3. Identify the components of mission statements.
     4. Discuss how clear vision and mission
    statements can benefit other strategic-
    management activities.
     5. Evaluate mission statements of different
    organizations.
     6. Write good vision and mission statements.
    Vision Statement
     Should answer the basic question:

    “WHAT DO WE WANT TO BECOME?”


    Vision statement should be established first.
    It should be short, preferably one sentence
    and as many managers as possible should
    have input into developing that statement.
    Mission Statement
     Answers the question:
    “ WHAT IS OUR BUSINESS?”
     An enduring statement of purpose that
    distinguishes one organization from other similar
    enterprises, the mission statement is a declaration
    of an organization’s “reason for being.”
     A clear mission statement is essential for
    effectively establishing objectives and formulating
    strategies.
    BUSINESS MISSION
    A business mission is the foundation
    for priorities, strategies, plans, and
    work assignments. It is the starting
    point for the design of managerial jobs
    and, above all, for the design of
    managerial structures.
    The Process of Developing Vision
    and Mission Statement
     1. Selection of articles about the prefer vision and
    mission statement.
     2. Ask the managers to read these articles as
    background information
     3. Ask the managers to prepare vision and mission
    statement for the organization.
     4. A facilitator will merge these statement into a
    single document and distribute the draft statements
    to all the managers
     5. Request for modification, addition and deletion
     6. Set a meeting to revise the document.
     7. Finalize the statement.
    The Importance (benefits) of Vision
    and Mission statements
     1. To ensure unanimity of purpose within the organization.
     2. To provide a basis, or standard, for allocating organizational
    resources .
     3. To establish a general tone or organizational climate
     4. To serve as a focal point for individuals to identify with the
    organization’s purpose and direction, and to deter those who
    cannot from participating further in the organization’s activities .
     5. To facilitate the translation of objectives into a work structure
    involving the assignment of tasks to responsible elements
    within the organization .
     6. To specify organizational purposes and then to translate
    these purposes into objectives in such a way that cost, time,
    and performance parameters can be assessed and controlled.
    Characteristics of a Mission
    Statement
     A Declaration of Attitude
     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
    organization’s diverse stakeholders, the individuals and
    groups of individuals who have a special stake or claim on
    the company.
    Characteristics of a Mission
    Statement cont…
     A Customer Orientation
     A good mission statement describes an
    organization’s purpose, customers,
    products or services, markets, philosophy,
    and basic technology.
    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?
     5. Concern for survival, growth, and profitability—Is the firm
    committed to growth and financial soundness?
     6. Philosophy—What are the basic beliefs, values, aspirations,
    and ethical priorities of the firm?
     7. Self-concept—What is the firm’s distinctive competence or
    major competitive advantage?
     8. Concern for public image—Is the firm responsive to social,
    community, and environmental concerns?
     9. Concern for employees—Are employees a valuable asset of
    the firm?
    Conclusion
     The vision and mission statement should reflect the
    organization’s unique purpose and reason for being. It
    reflects the highest purpose of an organization and will
    become a guide as the organization create it’s path for
    potential achievement of the created goal.

    "A business is not defined by its name,


    statutes, or articles of incorporation. It
    is defined by the business mission.
    Only a clear definition of the mission
    and purpose of the organization makes
    possible clear and realistic business
    objectives." —Peter Drucker
    SWOT :
    WALMART Doing Great in a
    Weak Economy
     Walmart’s Vision Statement:
    “ Be THE destination for customers to
    save money, no matter how they want to
    shop”.
     Walmart’s Mission Statement:
    “ To save people money so they can live
    better”
    SWOT Analysis
    STRENGTH WEAKNESS
     They have a clear and Higher risk in
    direct vision that is
    backed up by a diversification of
    simplified mission to products
    achieve it’s goal.
    High spending
     They are
    technologically ahead
    of their competitor.
     Good allocation of
    resources.
    SWOT Analysis
    Opportunities Threats
     Better standing in  New challenges in
    creating new product both technology
    niche in the industry.
    and policies being
     Becoming a front liner
    the front liner.
    in creation of new
    product presentation  High research cost
    and marketing  Global economic
    strategies having a problem
    complete information
    resources worldwide

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