Chapter - 3

The Business Vision and Mission

3.1 Vision and Mission - Meaning
3.2 The importance of a clear mission
3.3 Characteristics of a Mission Statement
3.4 Components of a mission statement
 
3.1 Vision and Mission - Meaning:
Vision:
 A Vision statement describes the desired future position of the
company. Elements of Mission and Vision statements are often
combined to provide a statement of the company's purposes, goals
and values.
 A vision statement is a company's roadmap, indicating both
what the company wants to become and guiding
transformational initiatives by setting a defined direction for
the company's growth.
 Vision statements undergo minimal revisions during the life of a
business, unlike operational goals which may be updated from
year-to-year.
 Shared vision between the employees and managers together creates
a commonality of interests that can lift employees out of the
monotony of daily work and put them into a new world of
opportunity and challenge.
Vision statement answers the question “What do we want to
become?”
Mission:
 An organization’s mission is the purpose or the reason for the
organization existence.
 A well-conceived mission statement defines the fundamental, unique
purpose that sets a company apart from other firms of its type and
identifies the scope of the company's operation in terms of the
products offered and markets served.

A clear mission statement describes the values and priorities of an

organization.
 Mission statement compels strategists to think about the nature and
scope of present operations and to assess the potential
attractiveness of future activities.
Mission statement answers the question “What is our business?”
3.2 The importance of a clear mission:
King and Cleland recommend to develop a written mission
statement in order to reap the following benefits:
i. To ensure unanimity of purpose within the organization.
ii. To provide a basis for allocating resources.
iii. Resolve divergent views among managers OR To establish
a general tone or organizational climate.
iv. To serve as a focal point for individuals to identify with
the organization’s purpose and direction, by participation.
v. To facilitate the translation of objectives into a work
structure involving the assignment of tasks to responsible
elements within the organization.
vi. To specify organizational purposes and to translate these
purposes into objectives in such a way that cost, time, and
performance can be assessed and controlled.
 3.3 Characteristics of a Mission Statement:
It is broad in scope. B/c;
First, a good mission statement allows for the generation and
consideration of a range of feasible alternative objectives and
strategies without unduly stifling management creativity.
However, an overly general statement that does not exclude any
strategy alternatives could be dysfunctional.
Second, a mission statement needs to be broad to reconcile
differences effectively among, and appeal to, an organization’s
diverse stakeholders, the individuals and groups of individuals
who have a special stake or claim on the company.
(stakeholders: employees, managers, stockholders, boards of
directors, customers, suppliers, distributors, creditors, governments
(local, state, federal, and foreign), unions, competitors,
environmental groups, and the general public).
Characteristics….
E.g. the general public is especially interested in social responsibility,
whereas stockholders are more interested in profitability.
 Most business statements of mission are expressed at high levels of
abstraction.
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. (Precision might stifle
creativity in the formulation of an acceptable mission or purpose).
 An effective mission statement should not be too lengthy.
 A mission statement should be enduring.
 The statement of mission should be dynamic in orientation,
allowing judgments about the most promising growth directions and
those considered less promising.
 An effective mission statement generates the impression that a firm
is successful, has direction, and is worthy of time, support, and
investment—from all socioeconomic groups of people.
Characteristics….
 Customer orientation
Mission statement describes an organization’s purpose,
customers, products or services, markets, philosophy, and
basic technology.
 
A good mission statement reflects the anticipations of
customers; rather than developing a product and then trying to
find a market,

The operating philosophy of organizations should be to

identify customers’ needs and then provide a product or
service to fulfill those needs.

Customer is the foundation of a business for it’s existence.

 3.4 Components of a mission statement:
1. Customers
2. Products or Services
3. Markets
4. Technology
5. Survival, Growth, and Profitability
6. Philosophy
7. Self-Concept
8. Concern for Public Image
9. Concern for Employees
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 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—Is the firm responsive to social,
community, and environmental concerns?
9. Concern for employees—Are employees a valuable asset of the
firm?
Components… Examples
1. Customers:
We believe our first responsibility is to the doctors, nurses, patients,
mothers, and all others who use our products and services. (Johnson &
Johnson).
To earn our customers’ loyalty, we listen to them, anticipate their
needs, and act to create value in their eyes. (Lexmark International).
2. Products or Services:
AMAX Engineering Company's principal products are molybdenum,
coal, iron ore, copper, lead, zinc, petroleum and natural gas, potash,
phosphates, nickel, tungsten, silver, gold, and magnesium.

Standard Oil Company is in business to find and produce crude oil,

natural gas, and natural gas liquids; to manufacture high-quality
products useful to society from these raw materials; and to distribute
and market those products and to provide depend- able related
services to the consuming public at reasonable prices.
Components… Examples
3. Markets:
We are dedicated to the total success of Corning Glass Works as a
worldwide competitor. (Corning Glass Works)
Our emphasis is on North American markets, although global
opportunities will be explored. (Blockway)
4. Technology: 
Control Data is in the business of applying micro-electronics and
computer technology in two general areas: computer-related hard-
ware; and computing-enhancing services, which include
computation, information, education, and finance.
 
We will continually strive to meet the preferences of adult smokers
by developing technologies that have the potential to reduce the
health risks associated with smoking. (RJ Reynolds) 
Components… Examples
5. Survival, Growth, and Profitability:
In this respect, the company will conduct its operations prudently
and will provide the profits and growth which will assure Hoover’s
ultimate success. (Hoover Universal).
To serve the worldwide need for knowledge at a fair profit by
adhering, evaluating, producing, and distributing valuable
information in a way that benefits our customers, employees, other
investors, and our society. (McGraw-Hill)
6. Philosophy:
Our world-class leadership is dedicated to a management
philosophy that holds people above profits. (Kellogg)
It’s all part of the Mary Kay philosophy—a philosophy based on
the golden rule. A spirit of sharing and caring where people give
cheerfully of their time, knowledge, and experience. (Mary Kay
Cosmetics)
Components… Examples

7. Self-Concept:
Crown Zellerbach is committed to leapfrogging ongoing
competition within 1,000 days by unleashing the constructive
and creative abilities and energies of each of its employees.

8. Concern for Public Image:

 
To share the world’s obligation for the protection of the
environment. (Dow Chemical)

To contribute to the economic strength of society and function

as a good corporate citizen on a local, state, and national basis
in all countries in which we do business. (Pfizer)
 
Components… Examples

9. Concern for Employees:

To recruit, develop, motivate, reward, and retain employees of

exceptional ability, character, and dedication by attractive
benefit program, opportunity for growth, and a high degree of
employment security. (The Wachovia Corporation)
 
To compensate its employees with remuneration and fringe
benefits competitive with other employment opportunities in
its geographical area and commensurate with their
contributions toward efficient corporate operations. (Public
Service Electric & Gas Company)
 
PepsiCo’s mission
• PepsiCo’s mission is to increase the value of our shareholders’
investment. We do this through sales growth, cost controls, and wise
investment resources. We believe our commercial success depends upon
offering quality and value to our consumers and customers; providing
products that are safe, wholesome, economically efficient and
environmentally sound; and providing a fair return to our investors
while adhering to the highest standards of integrity
Ben & Jerry’s mission
• Ben & Jerry’s mission is to make, distribute and sell the finest quality
all-natural ice cream and related products in a wide variety of innovative
flavors made from Vermont dairy products. To operate the Company on
a sound financial basis of profitable growth, increasing value for our
shareholders, and creating career opportunities and financial rewards for
our employees. To operate the Company in a way that actively
recognizes the central role that business plays in the structure of society
by initiating innovative ways to improve the quality of life of a broad
community—local, national and international.
Mission Statement Evaluation Matrix
Mission Statement Evaluation Matrix…
Components… Examples
• Fleetwood Enterprises will lead the recreational vehicle and
manufactured housing industries (2, 7) in providing quality products,
with a passion for customer-driven innovation (1). We will emphasize
training, embrace diversity and provide growth opportunities for our
associates and our dealers (9). We will lead our industries in the
application of appropriate technologies (4). We will operate at the
highest levels of ethics and compliance with a focus on exemplary
corporate governance (6). We will deliver value to our shareholders,
positive operating results and industry-leading earnings (5).
• 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).
Components… Examples
• Dell’s mission is to be the most successful computer company (2) in
the world (3) at delivering the best customer experience in markets we
serve (1). In doing so, Dell will meet customer expectations of highest
quality; leading technology (4); competitive pricing; individual and
company accountability (6); best-in-class service and support (7);
flexible customization capability (7); superior corporate citizenship
(8); financial stability (5).
• Procter & Gamble will provide branded products and services of
superior quality and value (7) that improve the lives of the world’s (3)
consumers. As a result, consumers (1) will reward us with industry
leadership in sales, profit (5), and value creation, allowing our people
(9), our shareholders, and the communities (8) in which we live and
work to prosper.
Hawassa University’s Mission Statement
• The mission of HU is to advance knowledge,
enhance technology creation and transfer, promote
effective entrepreneurship, and inculcate a
responsible and democratic attitude through
training, research, and public services; thereby,
contributing to the development of the nation.
Vision Statement
• Hawassa University aspires to be the best University
in the nation, competent in Africa and
internationally renowned by 2025.
 Individual Assignment
Dear students, please visit any organization that is
convenient for you and evaluate:
• Whether the company’s objectives meet the SMART
criteria or not. If not please set objective/s for a particular
organization that you believe can satisfy the criteria.
• Whether the particular company’s mission statement
includes the respective components. Write up your
conclusions about the given companies mission statements
based on the identified components of mission evaluation
matrix/index. Submit your recommended mission statement

NB: written report is expected to be submitted by Feb 13,

2022
…learning never ends
the journey of excellence
continues…

Thank You