Chapter Two

Mission, Vision, Business

definition, Goals and Objectives

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

• the firm strives to achieve in the long term.

• The vision statement should describe what the ultimate

goal or final result will be.

• The vision statement should be short, preferably one

sentence, and as many managers as possible should have
input into developing the statement.
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 Cont.
……….
• a vision is a picture of the future cast in the present,
it can only be created when your business connects
the dots between the environments in which:
1. It presently operates,
2. Scenarios of possible future environments, and
3. Its desired future environment based on its
values and core competencies.
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 Cont.
……….
• Vision
• An image or description of the business as you
aspire it to become in the future
• is the answer to the question “If we could have
the business of our dreams and the impact we
most desire, what our business would look like
in the year 2020?”
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 Cont.
……….

• Of primary importance in working toward a future

vision is the right focus.
• Vision is what or where your business intends to be
– it’s hoped for destination - not what it will be
doing in 2015.
• Vision should indicate in what significant ways your
business intends to be different than it is today.
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Basic Questions

• what do you like to have in your life?

• what you need people say about you?

• what you need to contribute to your family,

community and country?
• how you need to change community and what
should be your involvement?

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 QUOTE

“ The wind never helps the boat that has no clear

destination.”

Seneca

7
• WHY ESTABLISH VISION?
1. You take control of your life
2. You focus on the important things
3. You will make good decisions
4. You can finish the task efficiently
5. You are closer to success

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Mission statement:

•Mission statement
• a declaration of an organization’s “reason for
being.”
• An enduring statement of purpose that
distinguishes one organization from other
similar enterprises,
• answers the pivotal question “What is our 2-9
• Mission statement

• reveals what an organization wants to be &

whom it wants to serve
• Also called a creed statement, a statement of
purpose, a statement of philosophy, a statement
of beliefs, and a statement of business principles
• A business mission is the foundation for
priorities, strategies, plans, and work
assignments. 2-10
• It expresses the essential characteristics of the
organization, the reasons for its existence, the
nature of its business, the groups who are served by
the company (its corporate responsibilities), and the
principles/values under which it operates. It
becomes the definition of the company, the
declaration of its corporate identity.
• It is the reference for defining the scope of the
company’s business (its product-market strategy - 2-11
The Process of Developing Vision and Mission
Statements
1. Select several articles about these statements and ask all
managers to read these as background information.

2. Ask managers themselves to prepare a vision and

mission statement for the organization.

3. Merge these statements into a single document and

distribute the draft statements to all managers.

4. Process should create an “emotional bond” and “sense of

mission” between the organization and its employees
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 Importance of Vision and Mission Statements

1. To make sure all employees/managers understand the firm’s purpose

or reason for being.

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

3. To provide a basis for prioritization of key internal and external

factors utilized to formulate feasible strategies.

4. To serve as a focal point for individuals to identify with the

organization’s purpose and direction

5. To provide a basis for organizing work, departments, activities, and

segments around a common purpose
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Benefits of Having a Clear Mission
and Vision

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 Mission Statement 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—Is the firm technologically current?

5. Concern for survival, growth, and profitability—Is

the firm committed to growth and financial
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 Mission Statement Components

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—Is the firm responsive to

social, community, and environmental concerns?

9. Concern for employees—Are employees a valuable

asset of the firm? 2-16
Characteristics of a Mission Statement

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