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 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 is the art of seeing things invisible ……..Jonathan swift Vision “What do we want to become?”

Ch 2 -5 Comprehensive Mission Statement Vision Clear Business Vision

Vision ……… A vision usually proceeds the mission statement. It is usually short, concise and preferably limited to one sentence. Ch 2 -6

Vision of Walt Disney Corporation To make people happy Vision of General Motors TO BE THE WORLD LEADER IN TRANSPORTATION PRODUCTS AND RELATED SERVICES. Ch 2 -7

Ch 2 -8 Afghan Global Insurance Company. VISION Statement To expand the insurance market in Afghanistan & compete as a leading provider of both Commercial and personal insurance products.

Ch 2 -9 “What is our business?” Mission Statements

Ch Mission Statement Creed statement Statement of purpose Distinguishes one firm from another Declares the firm’s reason for being Also referred to as:

Mission of Coca cola… "Our mission is to create a growth strategy that allows us to bring good to the world -- by refreshing people every day and inspiring them with optimism through our brands and our actions." MISSION Statement AGI To introduce best practices and high Value insurance products in Afghanistan to benefit socio- economic development, while delivering value to share holders. Ch 2 -11

Mission of Pepsico…. To be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity." Ch 2 -12

Ch Mission is divided into two categories: ¾ Narrow Mission ¾ Broad Mission Narrow Mission: Narrow mission also identifies our mission but it restrict in terms of: 1. Product and services offered 2. Technology used 3. Market served 4. Opportunity of growth Mission Statements

Ch Broad Mission: Broad mission wider our mission values in terms of product and services, offered, market served, technology used and opportunity of growth. For example two different firms A & B. A deals in Rail Roads and B deals in Transportation i.e. we can say A co. has narrow mission and B co. has a wider mission Mission Statements

Ch Importance of Mission Mission Resource Allocation Unanimity of Purpose Organizational Climate Sense of direction Benefits from a strong mission

Ch Broad in scope Finely balanced between specificity & generality Broad in scope Finely balanced between specificity & generality Characteristics of Effective Mission

Ch Arouse positive feelings & emotions Motivate readers to action Generate favorable impression of the firm Arouse positive feelings & emotions Motivate readers to action Generate favorable impression of the firm Effective Missions

Ch Reflect future growth Are dynamic in nature Reflect future growth Are dynamic in nature Effective Missions

Component of mission statement Mission statements vary in Length Content Format Specificity But it must have all the 9 components…. Ch 2 -19

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

Components of a Mission statement Customer : Who are the customers? Product or Service : What are the firms, Major products or services? Market : Geographically, where does the firm compete? Technology : is the firm technologically current? Concern for survival, Growth and profitability : is the firm committed to growth and financial soundness ? Philosophy: what are the basic beliefs, aspiration, values and ethical priorities of the firm ?

Continued Self Concept : What is the firm’s distinctive competence or major competitive advantage? Concern for public image : Is the firm responsive to social, community and environmental concerns? Concern for employees : Are employees being considered as valuable assets for the firm?

Ch PepsiCo Mission PepsiCo’s mission is to increase the value of our shareholders’ investment. We do this through sales growth, cost controls, and wise investment resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.

Ch Ben & Jerry’s Mission Ben & Jerry’s mission is to make, distribute and sell the finest quality all-natural ice cream and related products in a wide variety of innovative flavors made from Vermont dairy products. To operate the Company on a sound financial basis of profitable growth, increasing value for our shareholders, and creating career opportunities and financial rewards for our employees. To operate the Company in a way that actively recognizes the central role that business plays in the structure of society by initiating innovative ways to improve the quality of life of a broad community—local, national and international. (American ice cream org)

Ch Mission Statement Evaluation Matrix COMPONENTS OrganizationCustomers Products ServicesMarkets Concern for Survival, Growth, ProfitabilityTechnology PepsiCoYesNo YesNo Ben & Jerry'sNoYes No

Ch Mission Statement Evaluation Matrix COMPONENTS OrganizationPhilosophy Self- Concept Concern for Public Image Concern for Employees PepsiCoYesNo Ben & Jerry'sNoYes