3 Journal 1 (Concept and Case study 1

424_ch_2_classnote.ppt

The Business Vision
and Mission

Chapter Two

Chapter Objectives

Describe the importance of vision and mission statements in strategic management.

Discuss how clear vision and mission statements can benefit other strategic-management activities.

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What Do We Want to Become?

A vision statement should answer the basic question, “What do we want to become?”

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Vision Statement Examples

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Mission Statement

should answer the basic question, “What is our business?”

The starting point for effectively establishing objectives and formulating strategies

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A Comprehensive Strategic-Management Model

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Importance of Vision and
Mission Statements

To ensure unanimity of purpose within the organization

To provide a basis, or standard, for allocating organizational resources

To establish a general tone or organizational climate

To serve as a focal point for individuals to identify with the organization’s purpose and direction

To facilitate the translation of objectives into a work structure

To specify organizational purposes

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Mission Statement Components
Elements of Strategies

Customers—Who are the firm’s customers?

Products or services—What are the firm’s major products or services?

Markets—Geographically, where does the firm compete?

Technology—Is the firm technologically current?

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Mission Statement Components

Concern for survival, growth, and profitability—Is the firm committed to growth and financial soundness?

Philosophy—What are the basic beliefs, values, aspirations, and ethical priorities of the firm?

Self-concept—What is the firm’s distinctive competence or major competitive advantage?

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Mission Statement Components

Concern for public image—Is the firm responsive to social, community, and environmental concerns?

Concern for employees—Are employees a valuable asset of the firm?

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Example Mission Statements

We aspire to make PepsiCo the world’s (3) premier consumer products company, focused on convenient foods and beverages (2). We seek to produce healthy financial rewards for investors (5) as we provide opportunities for growth and enrichment to our employees (9), our business partners and the communities (8) in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity (6).

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