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Chapter 2
THE BUSINESS VISION AND MISSION
Objectives:
By the end of this chapter students will have completed the following objectives:
1 Describe the nature and role of vision and mission statements in strategic management.
2. Discuss why the process of developing a mission statement is as important as the
resulting document.
3. ldentify the components of mission statements.
4. Discuss how clear vision and mission statements can benefit other strategic-
management activities.
5. Evaluate mission statements of different organizations.
6. Write good vision and mission statements.
To do list:
EVALUATE THREE MISSION STATEMENTS
Purpose: A business mission statement is an integral part of strategic management. lt
provides direction for formulating, implementing, and evaluating strategic activities.
This exercise will give you practice in evaluating mission statements‐a skill that is a
prerequisite to writing a good mission statement.
Instructions:
Step 1
On a clean sheet of paper, prepare a 9 3 matrix. Place the nine mission statement
components down the left column and the following three companies across the top of
your paper.
Step 2
Write Yes or No in each cell of your matrix to indicate whether you feel the particular
mission statement includes the respective component written from a customer
perspective.
Step 3 Turn your paper in to your instructor for a classwork grade.
WRITE A VISION AND MISSION STATEMENT FOR THE HERSHEY COMPANY
Purpose: Much Iike a person’s curricuIum vitae (résumé), there is always room for
improvement with regard to an existing vision and mission statement. Hershey does
not have a printed vision statement, but the company’s mission statement simpIy reads
as foIIows:
“Bringing sweet moments of Hershey happiness to the worId every day.”
Instructions:
Step 1
See the existing Hershey statements given
below. Step 2
On a clean sheet of paper, write a one-sentence improved vision statement for
Hershey. Step 3
On that same sheet of paper, write a new and improved mission statement for Hershey
that complies with (1) the nine components and (2) the nine characteristics presented in
this chapter.
Discussion / Content
Core Values Statement
A core vaIues statement specifies a firm’s commitment to integrity, fairness, discipIine,
equaI employment opportunity, teamwork, accountability, continuous improvement, or
other such exemplary attributes.
Vision Statement
A vision statement should answer the basic question: "What `o we want to bemohe?"
• The vision statement should be short, preferably one sentence, and as many
managers as possible should have input into developing the statement.
• The vision statement should reveal the type of business the firm engages.
Vision Statement Examples
• Dr Pepper SnappIe: to be the best beverage business gIobaIIy; our brands are synonymous
with
refreshment, fun, and flavor today and tomorrow.
• Starbucks: to be the premier purveyor of the finest coffee in the worId whiIe maintaining
uncompromising principles as we steadily grow.
Mission Statement
A decIaration of an organization’s "reason for being."
• lt answers the pivotal question "What is our business?"
• lt is essential for effectively establishing objectives and formulating strategies.
• lt reveals what an organization wants to be and whom it wants to serve
•
lt is also called a creed statement, a statement of purpose, a statement of
philosophy, a statement of beliefs, and a statement of business principles
Characteristics of a Mission Statement
• A good mission statement allows for the generation and consideration of a
range of feasible alternative objectives and strategies without unduly stifling
management creativity.
• A mission statement needs to be broad to reconcile differences effectively
among, and appeal to, an organization's diverse stakeholders
• Stakeholders — include employees, managers, stockholders, boards of
directors, customers, suppliers, distributors, creditors, governments (local,
state, federal, and foreign), unions, competitors, environmental groups, and
the general public.
• Broad in scope; does not include monetary amounts, numbers, percentages, ratios,
or objectives
• Fewer than 150 words in length
• lnspiring
• ldentifies the utiIity of a firm’s products
• Reveals that the firm is socially responsible
• Reveals that the firm is environmentally responsible
• lncludes nine components: customers, products or services, markets,
technology, concern for survival/growth/profits, philosophy, self-concept,
concern for public image, concern for
employees
• Reconciliatory
• Enduring
Insight on Scope of Mission Statement
• Mission statements are not designed to express concrete ends, but rather to
provide motivation, general direction, an image, a tone, and a philosophy to
guide the enterprise.
• An excess of detail could prove counterproductive since concrete specification
could be the base
for raIIying opposition; aII in the firm need to be onboard with the firm’s mission.
The following utility statements are relevant in developing a mission statement:
• Do not offer me things.
• Do not offer me clothes. Offer me attractive looks.
• Do not offer me shoes. Offer me comfort for my feet and the pleasure of
walking.
• Do not offer me a house. Offer me security, comfort, and a place that is clean
and happy.
•
Do not offer me books. Offer me hours of pleasure and the benefit of
knowledge.
• Do not offer me CDs. Offer me leisure and the sound of music.
• Do not offer me tools. Offer me the benefits and the pleasure that come
from making beautiful things.
• Do not offer me furniture. Offer me comfort and the quietness of a cozy place.
• Do not offer me things. Offer me ideas, emotions, ambience, feelings, and
benefits. Please, do not offer me things.
A major reason for developing a business mission statement is to attract customers who
give meaning to an organization. Hotel customers today want to use the lnternet, so more
and more hotels are providing
lnternet service.
Mission Statement Components
An effective statement should include nine components.
1. Customers‐Who are the firm’s customers?
2. Products or services‐What are the firm’s major products or services?
3. Markets‐Geographically, where does the firm compete?
4. Technology‐ls the firm technologically current?
5. Concern for survival, growth, and profitability‐ls the firm committed to growth
and financial soundness?
6. Philosophy‐What are the basic beliefs, values, aspirations, 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‐ls the firm responsive to social, community, and environmental
concerns?
9. Concern for employees‐Are employees a valuable asset of the firm?
Source: Fred R. David, 2020, Strategic Management 17th Ed.
Importance of Vision and Mission Statements
• To make sure aII empIoyees/managers understand the firm’s purpose or reason for being.
• To provide a basis for prioritization of key internaI and externaI factors utiIized to formuIate
feasibIe
strategies.
• To provide a basis for the aIIocation of resources.
• To provide a basis for organizing work, departments, activities, and segments
around a common purpose.
Source: Fred R. David, 2020, Strategic Management 17th Ed.
Developing Vision and Mission Statements
A widely used approach includes:
• SeIect severaI articIes about these statements and ask all managers to read these as
background information.
• Ask managers themseIves to prepare a vision and mission statement for the organization.
• A faciIitator or committee of top managers shouId then merge these statements into a
singIe
document and distribute the draft statements to all managers.
• A request for modifications, additions, and deIetions is needed next, aIong with a
meeting to revise the
document.
Example Mission Statements
Hershey
• We bring sweet moments (2) of Hershey happiness (6) to the world (3) every day.
• Author comment: Statement Iacks six components: Customers (1), TechnoIogy (4),
Survival/Growth/Profits (5), Distinctive Competence (7), Public lmage (8), and Employees (9);
12 words
A Proposed Mission Statement for Hershey
• We aim to serve consumers of aII ages and IifestyIes (1) by providing high-quality
chocolate, candy, and snack products (2) globally (3). We intend to grow and expand
our product offerings (5) using robotics and business analytics (4). We are dedicated to
supporting all communities where we operate (8), especially to the boys and girls in the
Milton Hershey School (6). Through our friendly and well- trained employees (9), we
provide consumers the best chocolate anywhere and wrapped in Hershey Happiness (7).
• 73 words
Rite Aid
• We are on a mission to offer the best possibIe drugstore experience for peopIe of aII ages (1)
around
the United States (3). We have a state-of-the-art information system (4) that provides our
pharmacists
(9) with warnings of any possible drug interactions to help ensure better customer safety
(8). We are determined to improve our customers’ overaII heaIth through our weIIness
programs (5). We offer an extensive line of other beauty, food, drink, cosmetic, and
vitamin products through our alliance with GNC (2). We believe in treating our customers
like family (6) and strive to maintain our reputation as the most personable drugstore (7).
(88 words)
United Parcel Service (UPS)
• We strive to be the most timeIy and dependabIe parceI and freight forwarding delivery
service (2) in the world (3). By implementing the latest tracking technology (4), we are
able to profitably grow (5) by offering individuals and businesses (1) dependable and
accurate delivery times (7). We promote from within to improve morale among all
employees (9). Our philosophy (6) is to responsibly balance the needs of our customers,
employees, shareholders, and communities (8) in an exemplary manner. (68 words)
Chapter test to be given by the instructor
Purpose: A business mission statement is an integral part of strategic management. lt
provides direction for formulating, implementing, and evaluating strategic activities. This
exercise will give you practice in evaluating mission statements‐a skill that is a
prerequisite to writing a good mission statement.
lnstructions:
Step 1
On a clean sheet of paper, prepare a 9 3 matrix. Place the nine mission statement
components down the left column and the following three companies across the top of
your paper.
Step 2
Write Yes or No in each cell of your matrix to indicate whether you feel the particular
mission statement includes the respective component written from a customer
perspective.
Step 3 Turn your paper in to your instructor for a classwork
grade. WRlTE A VlSlON AND MlSSlON STATEMENT FOR THE
HERSHEY COMPANY
Purpose: Much Iike a person’s curricuIum vitae (résumé), there is aIways room for
improvement with
regard to an existing vision and mission statement. Hershey does not have a printed
vision statement,
but the company’s mission statement simpIy reads as foIIows:
“Bringing sweet moments of Hershey happiness to the worId every day.”
lnstructions:
Step 1
See the existing Hershey statements given
below. Step 2
On a clean sheet of paper, write a one-sentence improved vision statement for
Hershey. Step 3
On that same sheet of paper, write a new and improved mission statement for Hershey
that complies with (1) the nine components and (2) the nine characteristics presented in
this chapter.
Discussion / Content
Core Values Statement
A core vaIues statement specifies a firm’s commitment to integrity, fairness, discipIine,
equaI employment opportunity, teamwork, accountability, continuous improvement, or
other such exemplary attributes.
Vision Statement
A vision statement shouId answer the basic question: “What do we want to become?”
• The vision statement should be short, preferably one sentence, and as many
managers as possible should have input into developing the statement.
• The vision statement should reveal the type of business the firm engages.
Vision Statement Examples
• Dr Pepper SnappIe: to be the best beverage business gIobaIIy; our brands are synonymous
with
refreshment, fun, and flavor today and tomorrow.
• Starbucks: to be the premier purveyor of the finest coffee in the worId whiIe maintaining
uncompromising principles as we steadily grow.
Mission Statement
A decIaration of an organization’s “reason for being.”
• lt answers the pivotal question “What is our business?”
• lt is essential for effectively establishing objectives and formulating strategies.
• lt reveals what an organization wants to be and whom it wants to serve
• lt is also called a creed statement, a statement of purpose, a statement of
philosophy, a statement of beliefs, and a statement of business principles
Characteristics of a Mission Statement
• A good mission statement allows for the generation and consideration of a
range of feasible alternative objectives and strategies without unduly stifling
management creativity.
• A mission statement needs to be broad to reconcile differences effectively
among, and appeal to, an organization's diverse stakeholders
• Stakeholders — include employees, managers, stockholders, boards of directors,
customers, suppliers, distributors, creditors, governments (local, state, federal, and
foreign), unions, competitors,
environmental groups, and the general public.
• Broad in scope; does not include monetary amounts, numbers, percentages, ratios,
or objectives
• Fewer than 150 words in length
• lnspiring
• ldentifies the utiIity of a firm’s products
• Reveals that the firm is socially responsible
• Reveals that the firm is environmentally responsible
• lncludes nine components: customers, products or services, markets,
technology, concern for survival/growth/profits, philosophy, self-concept, concern for
public image, concern for employees
• Reconciliatory
• Enduring
lnsight on Scope of Mission Statement
• Mission statements are not designed to express concrete ends, but
rather to provide motivation, general direction, an image, a tone, and a
philosophy to guide the enterprise.
• An excess of detail could prove counterproductive since concrete specification
could be the base for rallying opposition; aII in the firm need to be onboard with the firm’s
mission.
The following utility statements are relevant in developing a mission statement:
• Do not offer me things.
• Do not offer me clothes. Offer me attractive looks.
• Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking.
• Do not offer me a house. Offer me security, comfort, and a place that is clean and
happy.
• Do not offer me books. Offer me hours of pleasure and the benefit of knowledge.
• Do not offer me CDs. Offer me leisure and the sound of music.
• Do not offer me tools. Offer me the benefits and the pleasure that come from
making beautiful things.
• Do not offer me furniture. Offer me comfort and the quietness of a cozy place.
• Do not offer me things. Offer me ideas, emotions, ambience, feelings, and
benefits. Please, do not offer me things.
A major reason for developing a business mission statement is to attract customers who
give meaning to
an organization. Hotel customers today want to use the lnternet, so more and more hotels
are providing lnternet service.
Mission Statement Components
An effective statement should include nine components.
1. Customers‐Who are the firm’s customers?
2. Products or services‐What are the firm’s major products or services?
3. Markets‐Geographically, where does the firm compete?
4. Technology‐ls the firm technologically current?
5. Concern for survival, growth, and profitability‐ls the firm committed to growth
and financial soundness?
6. Philosophy‐What are the basic beliefs, values, aspirations, 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‐ls the firm responsive to social, community, and environmental
concerns?
9. Concern for employees‐Are employees a valuable asset of the firm?
Source: Fred R. David, 2020, Strategic Management 17th Ed.
lmportance of Vision and Mission Statements
• To make sure aII empIoyees/managers understand the firm’s purpose or reason for being.
• To provide a basis for prioritization of key internaI and externaI factors utiIized to formuIate
feasibIe
strategies.
• To provide a basis for the aIIocation of resources.
• To provide a basis for organizing work, departments, activities, and segments around a
common
purpose.
Source: Fred R. David, 2020, Strategic Management 17th Ed.
Developing Vision and Mission
Statements A widely used approach
includes:
• SeIect several articles about these statements and ask all managers to read these
as background information.
• Ask managers themseIves to prepare a vision and mission statement for the organization.
• A faciIitator or committee of top managers shouId then merge these statements
into a single document and distribute the draft statements to all managers.
• A request for modifications, additions, and deIetions is needed next, aIong with a
meeting to revise the
document.
Example Mission Statements
Hershey
• We bring sweet moments (2) of Hershey happiness (6) to the world (3) every day.
• Author comment: Statement Iacks six components: Customers (1), TechnoIogy (4),
Survival/Growth/Profits (5), Distinctive Competence (7), Public lmage (8), and Employees (9);
12 words A Proposed Mission Statement for Hershey
• We aim to serve consumers of aII ages and IifestyIes (1) by providing high-quality
chocolate, candy, and snack products (2) globally (3). We intend to grow and expand
our product offerings (5) using
r o b o t i cs a n d b u si n e ss an al y ti cs ( 4 ). W e a r e
( 8 ) , e s p ec i a lly t o t h e bo ys a n d gi r ls i n t h e M
d e d ic at e d t o s u p p o r ti n g a ll c m m u n i ti e s w h e re w e
il to n H e r sh e y S c h o o l ( 6 ). T h ro ug h o u r f r ie n d ly an d
o p e e rate trained employees (9), we provide consumers the best chocolate anywhere
w e l ll -
and wrapped in Hershey Happiness (7).
• 73 words
Rite Aid
• We are on a mission to offer the best possibIe drugstore experience for peopIe of aII ages (1)
around
the United States (3). We have a state-of-the-art information system (4) that provides our
pharmacists
(9) with warnings of any possible drug interactions to help ensure better customer safety
(8). We are determined to improve our customers’ overaII heaIth through our weIIness
programs (5). We offer an extensive line of other beauty, food, drink, cosmetic, and
vitamin products through our alliance with
GNC (2). We believe in treating our customers like family (6) and strive to maintain our
reputation as the most personable drugstore (7).
(88 words)
United Parcel Service (UPS)
• We strive to be the most timeIy and dependabIe parceI and freight forwarding delivery
service (2) in the world (3). By implementing the latest tracking technology (4), we are
able to profitably grow (5) by offering individuals and businesses (1) dependable and
accurate delivery times (7). We promote from within to improve morale among all
employees (9). Our philosophy (6) is to responsibly balance the needs of our customers,
employees, shareholders, and communities (8) in an exemplary manner. (68 words)
