1. 2. The Business Vision & Mission
DR. KHADIJAH OMAR
UMT

2. Introduction
We perhaps can best understand vision and mission by focusing on a business when it is first started.
Vision and mission statements often can be found in the front of annual report
Research conclude that companies have used a mission statement sometime in the previous five years

3. Vision ‘what do we want to become’
Vision statement should be establish first and foremost
Preferably in a single sentence
Go to page 76 for examples

4. Mission ‘What is our business’
Sometimes called ‘reason for being’ or creed statement
Some firms develop mission statement simply because they feel it is fashionable rather than commitment

5. Should revisit vision and mission statements to realize benefits
Review, reword and reaffirm the firm’s vision and mission

6. The ways of developing vision and mission statements
commonly done – select articles about these statements and read
ask managers to prepare for the statements
then these statements merge into a single document and the draft will be distribute to all managers
the modification done (addition, deletion)
Some firms use discussion group or hire consultants to develop or modify existing statement

7. Importance of Vision and Mission
Ensure unanimity of purpose
Provide basis for allocating resources
Establish general tone/climate
Serve as a focal point
Facilitate the translation of objectives into work structure
To specify organizational purpose

8. Characteristics of a mission statement
A mission statement should portray:
A declaration of attitude
A customer orientation
9 components of an effective statement

9. A declaration of attitude
Mission statement are not designed to express concrete ends, rather to provide motivation, direction, image, tone, and philosophy.
Vagueness leaves rooms to fill in details and modify the general.
Mission should not be too lengthy.
Broad in scope to allow generation/consideration of alternatives and reconcile the differences
An effective mission statement generates the impression that a firm is successful, has direction, and is worthy of time, support and investment

10. A customer orientation
A major reason for developing mission statement is to attract customers who give meaning to organization
Good mission statements identify the utility of a firm’s products/service to its customers
(AT&T’s mission statement focuses on telecommunication rather than telephone and EXXON mobil’s mission statement focuses on energy rather than oil and gas)

11. General characteristics of a good mission statement
Broad in scope
Less than 250 words
Inspiring
Identify the utility of firm’s product
Reveal the firm’s social responsibility
Reveal the firm’s environmental responsibility
Include 9 necessary components
Enduring

12. Mission Statement 9 Components
Customers - who are the firm’s customers?
Products or services – firm’s major products /services?
Markets –geographically where does firm compete?
Technology – current?
Concern for survival, growth and profitability – committed to growth and financial soundness?

13. Mission Statement 9 Components
Philosophy– basic beliefs, values, aspirations, ethics?
Self-concept – distinctive competence or competitive advantage?
Concern for public image – responsive to social, community and environmental concern?
Concern for employees – are employees valuable assets to the firm?

14. Writing and evaluating mission statements
There is no one best mission statement for a particular organization, so good judgment is required in evaluating mission statement
A better mission statement is when it has more of the nine components in it and clear

15. Ten benefits of having clear mission and vision
1.achieve clarity of purpose
2.provide basis for all other strategic planning activities
3.provide direction
4.provide focal point for all stakeholders
5.Resolve divergent views

16. 6.promote a sense of shared expectations
7.Project a sense of worth and intent to all stakeholders
8.Project an organized, motivated organization worthy of support
9.Achieve higher organizational performance
10.Achieve organizational synergy among employees and managers

17. Go to page 85 (Table 2-4)
Essential components of a mission statement

18. Go to page 75 (table 2-1)
Which mission statement is the best/worst?

19. The End
TQVM