Ch 2 -1 Chapter 2 The Business Vision & Mission

Ch 2 -2 Chapter Outline What do we want to become? What is our business? Importance of Vision and Mission Statements

Ch 2 -3 Chapter Outline ( cont’d ) Characteristics of a mission statement Components of a mission statement Writing & evaluating mission statements

Ch 2 -4 Vision Agreement on the basic vision for which the firm strives to achieve in the long run is critically important to the firm’s success.

Ch 2 -5 “What do we want to become?” Vision

Ch 2 -6 Comprehensive Mission Statement Vision Clear Business Vision A clear vision provides the foundation for developing a comprehensive mission statement. Many organizations have both a vision and mission statement, but the vision statement should be established first and foremost

Ch 2 -7 “What is our business?” Mission Statement

Ch 2 -8 Mission statement Mission statement outlines the broad directions that the organization will follow and briefly summarizes the reasoning and values that lie behind it The purpose of the mission statement is to communicate to all stakeholders ( 利益相关 者） and outside the organization what the company stands for and where it is headed

Ch 2 -9 Mission Statements Enduring statement of purpose Distinguishes one firm from another Declares the firm’s reason for being Mission Statements can be also called Creed statement Statement of purpose Statement of philosophy Statement of business principles

Ch Reveal what an organization wants to be and whom it wants to serve Mission Statements

Ch Vision & Mission Many organizations develop both vision & mission statements.

Ch Shared Vision -- Creates commonality of interests Reduce daily monotony Provides opportunity & challenge Importance of Vision & Mission

Ch Profit & vision are necessary to effectively motivate a workforce Importance of Vision & Mission

Ch Essential for effectively establishing objectives and formulating strategies Importance of Vision & Mission Clear mission is needed before alternative strategies can be formulated and implemented

Ch Benefits from a strong mission Mission Resource Allocation Unanimity of Purpose Organizational Climate Focal point for work structure

Pay more attention on daily administrative concerns and tactics Overlook the development of vision & mission Develop vision & mission because feeling fashionable, rather than out of any real commitment Develop vision & mission only when the company is in trouble Ch Pitfalls of developing vision & mission

Ch Define what the organization is Define what it aspires to be Limited to exclude some ventures Writing A Mission statement a mission statement should – Vern McGinnis Broad enough to allow for growth Distinguishes firm from all others Stated clearly – understood by all

Characteristics of a mission statement A declaration of attitude A customer orientation A declaration of social policy Ch 2 -18

Ch Customer Orientation It is the customer who determines what a business is. What the customer thinks he/she is buying,what he/she considers value, is decisive—it determines what a business is What the customer buys and considers value is never a product. It is always utility, meaning what a product or service does for him or her

Ch Anticipates customer needs Identifies customer needs Provides product/service to satisfy needs Mission & Customer Orientation An Effective Mission Statement --

Ch Social policy affects development of vision & mission Responsibilities to –  Consumers  Environmentalists  Minorities  Communities Social Policy & Mission Managerial philosophy shapes social policy --

Ch Social Policy & Mission Social policy should be integrated in all strategic-management activities. Mission should convey the social responsibility of the firm

Ch Mission Elements Customers Markets Employees Public Image Self-Concept Philosophy Survival Growth Profit Products Services Technology

Ch Developing Vision & Mission Participation from diverse managers is important in developing the mission.

Ch Key Terms & Concepts For Review (Chapter 2) Concern for EmployeesCustomers Concern for Public ImageMarkets Survival, Growth, & Profitability Mission Statement Components Creed StatementManagerial Philosophy

Ch Key Terms & Concepts For Review (Chapter 2) Self ConceptStakeholders Social PolicyVision Statement