1. Ch 2 -1
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2. Strategic Management: Concepts and Cases
Arab World Edition
Fred R. David
Abbas J. Ali
Abdulrahman Y. Al-Aali
Chapter 2:
The Business Vision and
Mission
Ch 2 -2
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3. Chapter Outline Importance of Vision and Mission Statements
What Do We Want to Become?
What Is Our Business?
Characteristics of a Mission Statement
Components of a Mission Statement
Writing & Evaluating Mission Statements
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4. Copyright © 2011 Pearson Education

5. What is the definition of vision ?
Vision Statement
What is the definition of vision ?
Where can you find the vision statement of any organization?
Examples of vision statements .
Why the vision is important?
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6. Vision is defined as the main target/goal that any organization strive to achieve in the long term
Vision statement characteristics :-
It should answer the question what do we want to become?
It provides the foundation for developing a comprehensive mission
It should be established first and foremost the mission
It should be short (one sentence if possible ).
Participation from many managers is important in developing the mission statement
However , most of the Arab companies stated visions statement , most of them are not well articulated (results of researches )
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7. Where can you find the vision statement of any organization ?
Since the vision of any organization must be explicit ,it is easy to find it on the website of the organization in section called (about us – our profile )
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8. Vision Statements examples
“our vision is to be the preferred world leader in chemicals .”
(SABIC)
“ Our vision is to shape tomorrow’s financial map as a global gateway for capital and investment .”
Dubai International Financial Centre (DIFC)
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9. Vision Statements examples
“ our vision is to be the leading provider of innovative financial services in accordance with the legislation of Allah” Dubai Islamic Bank
“ our vision is to be a highly innovative telecommunication company ” Oman Telecommunications Company
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10. Vision Statements benefit
Agreement on the basic vision is critically important to the firm’s success. Because the shared established of vision :-
Creates commonality of interests
Reduces daily Routine
Provides opportunity & challenge
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11. Comprehensive Mission Statement
Vision Statements
Clear Business Vision
Comprehensive Mission Statement
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12. Mission Statements What is the definition of mission ?
Where can you find the mission of any organization?
Missions examples.
Why mission is important?
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13. Mission statement characteristics :
Mission statement is defined as a brief description of a company's fundamental purpose. It answers the question, "Why do we exist?"
Mission statement characteristics :
It answers the question, “ what is our business ?
Declares the firm’s reason for being "Why do we exist?“
It distinguishes one firm from another
It articulates the company's purpose both for those in the organization and for the public.
90% of all companies have used a mission statement in the previous five years.
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14. Statement of philosophy Statement of business principles
Mission Statements
Mission statements can also be referred to as:
Creed statement
Statement of purpose
Statement of philosophy
Statement of business principles
It could be founded on the website of the organization in section called (about us/ our profile )
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15. Mission Statement Examples
Isam K. Kabbani (IKK) Group
To provide our part of the Arab world with local and reliable services in a variety of sectors and products. To create employment to thousand of personnel and in-house training for hundreds of young Arab graduates in crucial sectors to the benefit of the IKK Group,. To set a good example of our basic business philosophy: “Hire well, train well, pay well and treat well.”
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16. Mission Statement Examples
Saudi Research and Marketing Group
To provide high content media services and products that are high quality and reliable. To build numerous media platforms. To continually invent new products to meet the needs of various social categories in various regions. To service readers, audience and advertisers.
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17. Mission Statement Examples
Etisalat (STC)
To extend people’s reach. At Etisalat, we are actively developing advanced networks that will enable people to develop, to learn and grow.
Sharjah Islamic Bank
Sharjah Islamic Bank aims to provide the best services by commitment to serve people and the society in order to contribute towards its growth. Our mission has multiple dimensions aimed at communicating with all of our different audiences.
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18. Mission Statement Examples
Gulf Glass Manufacturing
Our Mission is to be the World’s best supplier among the glass (industries) and to achieve leadership position in Gulf Market(s) by serving the needs of our customers in innovative ways. By saying World’s Best we mean a consistently growing company that supplies quality glass products and superior service. Being a successful company, we can facilitate continuous improvement of products and continue to serve those to whom we are responsible: our customers and our employees. we will achieve our mission by maintaining a spirit of excellence in everything we do.
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19. Focal Point for Work Structure
Importance of Mission
Benefits from a strong mission
Unanimity of Purpose
Mission
Resource Allocation
Organizational
Climate
Focal Point for Work Structure
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20. Mission & vision differences
Focus
What is our business ?
what do we want to become? ?
the main Q
Less broader
More broader
Scope
More longer
Must be short
(one sentence if possible )
Long
The foundation of objectives , plans , strategy ,and policies.
It is the foundation of the mission
Role
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21. Mission development as a process
For mission to be developed a wide approach must be undertaken :-
Reading articles (as background)by managers
preparation of mission statements
A facilitator should integrate these statements into a single documents
Distributing the draft mission to all managers
Modifications , additions, changes are requested (evaluation)
Note
Organizations can manage this process internally (by discussion group) , or externally by consultant or external facilitator
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22. The Effective Missions requirements
Broad in scope
Generate strategic alternatives
Reconciles interests among diverse stakeholders
Reflects a balance between specifications &generalizations
Arouse positive feelings and emotions
Motivate employees to action
Generate favourable impression of the firm
Reflect future growth
Provide criteria for strategy selection
Dynamic in nature
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23. Importance (Benefits) of Vision &Mission statements
According the research results, many benefits can be achieved through the formalized mission:-
2x average return on shareholders’ equity
Positive relationship to company performance
30% higher return on certain financial measures
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24. Why organizations must carefully develop a written mission statement?
To keep the following benefits:-
To ensure unanimity of purpose within the organization
To provide a basis or standard for maximizing the resources allocation
To establish a general tone or organizational climate
To facilitate putting the objectives and polices into actions
To maximizing the efficiency of resource allocation process
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25. Characteristics of a Mission
First :A declaration of attitude
Second :A customer orientation
Third: A declaration of social Policy
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26. A mission statement is a declaration of attitude
It must be broad in scope not only a statement of specific details
It should not be too lengthy, recommended length is less than 250 words
It must arouse positive feelings and emotion
It must generate a good impression that the firm is successful, has direction, and is worthy of time
It must imply the growth directions in the future
It must serve as a framework for evaluating both current and prospective activities.
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27. A mission must be a customer orientation through what Vern McGinnis mentioned
Define what the organization is.
Define what it aspires to be.
Broad enough to allow for growth
Distinguishes firm from all others
Stated clearly – understood by all
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28. To be effective customer orientation mission :
Anticipates customer needs
Identifies the utility of a firm’s products or service to the customer (not the clothes- but the attractive look) (not shoes – but the comfort) (not the book –but knowledge ) (not the milk -----but health care ----etc)
Provides product/service to satisfy needs
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29. Social Policy & Mission Mission is a declarative of social policy
The term Social policy embraces managerial philosophy and thinking at the highest levels of an organization
Social policy affects the development of a business mission statement
Mission statement conveys the social responsibility of the firm to consumers ,environmentalists ,minorities ,communities…..etc
In 2007 Arabian Business magazine rated Saudi German Hospital (SGH) as a highly socially responsible corporation
Note In the Arab world , rating corporations in terms of social responsibility is a new trend and it will take a time to become a common tradition
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30. Social responsibility examples
Alfa , a Lebanon – based company developed a program called 4life , intended to support the children in communication need; so they can enjoy life in a dignified and self reliant and participate in their community.
Dallah group contributes to education and health activities in communities where it operates it provides training to sharpen young peoples 'skills and improve their chance of finding suitable position which bring a reasonable income .
Etsalat offers the freedom package , which serves people with a special need, it was lunched and designed specially to be used to enhance their communication options, additionally it support them by many activities in different areas
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31. Mission Statement Components
Mission statement can and do vary in length ,content , format,….but it includes the most essential components from the following
Customer , who are the firms customer?
Products & service, what are the firms main products?
Markets ,where does the firm compete?
Technology, I s the firm technological current?
Concern for survival ,growth, profitability I s the firm committed to growth and financial, soundness?
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32. 7-Self- concept, what is the firm major competitive advantages?
6-Philosophy , what are the basic believes , values, and ethical prosperities of the firm?
7-Self- concept, what is the firm major competitive advantages?
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?
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33. Mission Components Products or Services Markets Customers Technology
Employees
Survival,
Growth,
Profits
Public
Image
Philosophy
Self-
Concept
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34. Writing & Evaluating Mission Statement
There is no one best mission statement for a particular organization
Good judgment is required in evaluating mission statement
Not all companies covers all the nine components in their mission statement.
The nine basic components serve as a practical framework for evaluating and writing mission statement
The more components are present in mission statement, the more strong statement it could be
Evaluation of a mission statement according to the presence of the nine components is just the beginning of the process to assess a statement’s overall
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35. Mission Statement Evaluation Matrix
Component 1
Component 2
Component 3
Component 4
Component 5
Component 6
Component 7
Component 8
Component 9
Customer
Products or Services
Markets
Technology
Concern for Survival, Growth, Profitability
Philosophy
Self-Concept
Concern for Public Image
Concern for Employees
Total out of 9
Organizations
Ch 2 -35
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36. Mission Statement Evaluation Matrix
Component 1
Component 2
Component 3
Component 4
Component 5
Component 6
Component 7
Component 8
Component 9
Customers
Products or Services
Markets
Technology
Concern for Survival, Growth, Profitability
philosophy
Self-Concept
Concern for Public Image
Concern for Employees
Total out of 9
 Organization
Isam K. Kabbani Group No
Yes 6
Saudi Research and Marketing Group 4
Etisalat  1
Sharjah Islamic Bank 2
Gulf Glass Manufacturing 5
SABIC
Mission Statement Evaluation Matrix
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Publishing as Prentice Hall

37. According to the MSEM we can Rank these companies as follow
First
ISAM K.Kabbani Group ---- (includes 6 components out of 9)
Second
Gulf Glass Manufacturing
(includes 5 components out of 9 ).
Third
Saudi Research and Marketing Group
(includes 4 components out of 9 ).
Fourth
Sharjah Islamic Bank & SABIC
(include 2 components out of 9 ).
Fifth
Etisalat  (includes 1 components out of 9 ).
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38. Copyright © 2011 Pearson Education

39. Assignment (2) Individual task
Try to apply the Mission Statement Evaluation Matrix (MSEM) on the identified companies.
3 Companies per student
Deadline for delivery one week later
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Publishing as Prentice Hall