1. WEEK 2 The Business Vision & Mission

2. A business is not defined by its names, statues 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 Druncker)

3. Comprehensive Strategic Management Model (Vision & Mission)
External
Audit
Vision
&
Mission
Long-Term
Objectives
Generate,
Evaluate,
Select
Strategies
Implement
Strategies:
Mgmt Issues
Implement
Strategies:
Marketing,
Fin/Acct,
R&D, CIS
Measure &
Evaluate
Performance
Internal
Audit

4. Often can be found in the front of annual report
Vision & Mission
Often can be found in the front of annual report
Display throughout a firm premises
Distributed with company information sent to constituencies

5. Vision & Mission
Profit is not mission or vision but necessary to effectively motivate a workforce

6. Vision Statement
“What Do We What to Become?”

7. Vision Statement Should answer the question “what do we want to be?”
A simple statement of understanding of the firm will be in the future
A clear vision provide a foundation for developing mission statement
Vision should be established first and foremost
Should be short, preferable one sentence
Should be develop based on input from as many managers as possible

8. Vision statement (US firms)
Vision Statement Examples
Vision statement (US firms)
Comments
Tyson Food - “To be the world’s first choice for protein solutions while maximizing shareholders value
Good statement
General motor “To be the world class leader in transportation products and related services
Procter & Gamble “to be and be recognized as consumer products company in the world”
Too vague

9. Mission Statement
“What is our business?”

10. Mission Statements
Enduring statement of purpose
Distinguishes one firm from another
Declares the firm’s reason for being

11. Mission Statement Examples
Vision statement
Comments
Tyson Food - “To be the world’s first choice for protein solutions while maximizing shareholders value
Good statement
General motor “To be the world class leader in transportation products and related services
Procter & Gamble “to be and be recognized as consumer products company in the world”
Too vague

12. Vision statement (Malaysian firms)
Vision Statement Examples
Vision statement (Malaysian firms)
Comments
TM Berhad - "To be Malaysia’s leading new generation communications provider, embracing customer needs through innovation and execution excellence"   ?
Malayan Banking - To be a Regional Financial Services Leader
Petronas Dagang Berhad - to be the “Brand of 1st Choice”

13. The process of developing vision and mission
Select several articles about the statements and ask managers to read as background information
Then, ask them to prepare a vision and mission
During the process some organizations use discussion groups of managers to develop or modify existing statements
Some hire outside consultant or facilitator to manage the process and help draft the language
Some use outside person with expertise in developing such statement

14. The Importance of Vision & Mission
Research results:
2x average return on shareholder’s equity
Positive relationship to company performance
30% higher return on certain financial measures

15. Importance of Vision and Mission
To ensure unanimity of Purpose within the
organization
Vision &
Mission
To provide a basis or standard for resource
allocation
Establish a general organizational Climate
To serve as a focal point for individuals
to indentify with the organization’s purpose
To facilitate the translation of objective for work
structure involving the assignment of tasks
To specify organizational purpose and translate
the purpose into objectives

16. Mission & Customer Orientation – Vern McGinnis
Define what the organization is
Define what it aspires to be
Limited to exclude some ventures
Broad enough to allow for growth
Distinguishes firm from all others
Stated clearly – understood by all

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

18. Ten Benefits of Having a Clear Mission and Vision
Achieve clarity of purpose among all managers and employees
Provide a basis for all other strategic planning activities
Provide direction
Provide a focal point for all stakeholders of the firm
Resolve divergent views among managers
Promote a sense of shared expectations among all managers and employees
Project a sense of worth and intent to all stakeholders
Project an organized, motivated organization worthily of support
Achieve higher organizational performance
Achieve synergy among all managers and employees

19. Characteristics of Mission Statement
Broad in scope – do not include money amounts, numbers, percentages, ratios or objective
Less than 250 words in length
Inspiring
Indentify the unity of a firm’s products
Reveal that the firm is socially responsible
Reveal that the firm is environmentally responsible
Include nine components (next slide)
Reconciliatory
Enduring

20. Nine Components of Mission Statement
1. Customers
Who are the firm’s customers
2. Product or services
What are the firm’s major product of services
3. Markets
Geographically, where does the firm compete?
4. Technology
Is the firm technology current?
5. Concern for survival, growth and profitability
Is the firm committed to growth and financial soundness?
6. Philosophy
What are the basic belief, values, aspiration 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 concern?
9. Concern for employees
Are employees a valuable assets of the firm?

21. Examples of Mission Statement
Humanising Financial Services from the Heart of ASEAN (Maybank)
TM Mission
Strive towards customer service excellence and operational efficiency
Enrich consumer lifestyle and experience by providing innovative new generation services
Improve the performance of our business customers by providing high value information and communications solutions
Deliver value for stakeholders by generating shareholder value and supporting Malaysia’s growth and development

22. Mission Statement Evaluation Matrix
COMPONENTS  1 2  3  4  5 
Organization
Customers
Products Services
Markets
Concern for Survival, Growth, Profitability
Technology
PepsiCo
Yes No
Ben & Jerry's

23. Mission Statement Evaluation Matrix
COMPONENTS  6 7 8 9
Organization
Philosophy
Self-Concept
Concern for Public Image
Concern for Employees
PepsiCo
Yes No
Ben & Jerry's

24. Issues for review and discussion
Find a mission statement. Analyze it in term of it characteristics
Identify two mission statements examples (profit and non profit organization). Using the evaluation matrix analysis in the class based on the 9 components of mission statement.