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1.
Chapter 2 The Business
Vision & Mission Strategic Management: Concepts & Cases 13th Edition Fred David Copyright © 2011 Pearson Education, Inc. Ch 2 -1
2.
Copyright © 2011
Pearson Education, Inc. Ch 2 -2
3.
Vision “The
last thing IBM needs right now is a vision.” (July 1993) “What IBM needs most right now is a vision.” (March 1996) – Louis V. Gerstner, Jr., CEO, IBM Corporation Copyright © 2011 Pearson Education, Inc. Ch 2 -3
4.
Vision Agreement on
the basic vision for which the firm strives to achieve in the long term is especially important. Copyright © 2011 Pearson Education, Inc. Ch 2 -4
5.
Vision “What do
we want to become?” Copyright © 2011 Pearson Education, Inc. Ch 2 -5
6.
Vision Statement Examples
Tyson Foods’ vision is to be the world’s first choice for protein solutions while maximizing shareholder value. Copyright © 2011 Pearson Education, Inc. Ch 2 -6
7.
Vision Statement Examples
General Motors’ vision is to be the world leader in transportation products and related services. Copyright © 2011 Pearson Education, Inc. Ch 2 -7
8.
Vision Statement Examples
PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today. Copyright © 2011 Pearson Education, Inc. Ch 2 -8
9.
Vision Statement Examples
Dell’s vision is to create a company culture where environmental excellence is second nature. Copyright © 2011 Pearson Education, Inc. Ch 2 -9
10.
Vision
Clear Business Vision Comprehensive Mission Statement Copyright © 2011 Pearson Education, Inc. Ch 2 -10
11.
Mission Statement
Answers the question: “What is our business?” Reveals: what the organization wants to be whom we want to serve Copyright © 2011 Pearson Education, Inc. Ch 2 -11
12.
Mission Statement An
enduring statement of purpose that distinguishes one organization from other similar enterprises A declaration of an organization’s “reason for being” Copyright © 2011 Pearson Education, Inc. Ch 2 -12
13.
Mission Statements are
also called Creed statement Statement of purpose Statement of philosophy Statement of beliefs Statement of business principles A statement “defining our business” Copyright © 2011 Pearson Education, Inc. Ch 2 -13
14.
Mission Statement Examples Fleetwood
Enterprises will lead the recreational vehicle and manufactured housing industries in providing quality products with a passion for customer-driven innovation. We will emphasize training, embrace diversity and provide growth opportunities for our associates and our dealers. We will lead our industry in the application of appropriate technologies. We will operate at the highest levels of ethics and compliance with a focus on exemplary corporate governance. We will deliver value to our shareholders, positive operating results and industry- leading earnings. Copyright © 2011 Pearson Education, Inc. Ch 2 -14
15.
Mission Statement Examples
We aspire to make PepsiCo the world’s premier consumer products company, focused on convenient foods and beverages. We seek to produce healthy financial rewards for investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity. Copyright © 2011 Pearson Education, Inc. Ch 2 -15
16.
Mission Statement Examples
Dell’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet consumer expectations of highest quality; leading technology; competitive pricing; individual and company accountability; best-in-class service and support; flexible customization capability; superior corporate citizenship; financial stability. Copyright © 2011 Pearson Education, Inc. Ch 2 -16
17.
Mission Statement Examples
Proctor & Gamble will provide branded products and services of superior quality and value that improve the lives of the world’s consumers. As a result, consumers will reward us with industry leadership in sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper. Copyright © 2011 Pearson Education, Inc. Ch 2 -17
18.
Mission Statement Examples
At L’Oreal, we believe that lasting business success is built upon ethical standards which guide growth and on a genuine sense of responsibility to our employees, our consumers, our environment and to the communities in which we operate. Copyright © 2011 Pearson Education, Inc. Ch 2 -18
19.
Vision & Mission
Great benefits can be achieved if an organization Systematically revisits their vision and mission statement Treats them as living documents Considers them to be an integral part of the firm’s culture Copyright © 2011 Pearson Education, Inc. Ch 2 -19
20.
Vision & Mission Profit
& vision are necessary to effectively motivate a workforce Copyright © 2011 Pearson Education, Inc. Ch 2 -20
21.
Vision & Mission Shared
vision creates a community of interests Copyright © 2011 Pearson Education, Inc. Ch 2 -21
22.
Developing Vision &
Mission A clear mission is needed before alternative strategies can be formulated and implemented Copyright © 2011 Pearson Education, Inc. Ch 2 -22
23.
Developing Vision &
Mission Participation by as many managers as possible is important in developing the mission because through involvement people become committed to an organization Copyright © 2011 Pearson Education, Inc. Ch 2 -23
24.
Steps to Developing
Vision & Mission Statements 1. Have managers read related articles 2. Have managers prepare a vision and mission statement for the organization 3. Merge the documents into one and distribute 4. Gather feedback from managers 5. Meet to revise the final document Copyright © 2011 Pearson Education, Inc. Ch 2 -24
25.
Benefits of Mission
Statements Better financial results Unanimity of purpose Resource allocation Establishment of culture Focal point for individuals Establishment of work structure Basis of assessment and control Resolution of divergent views Copyright © 2011 Pearson Education, Inc. Ch 2 -25
26.
Copyright © 2011
Pearson Education, Inc. Ch 2 -26
27.
Resolution of Divergent
Views A genuine decision must be based on divergent views to have a chance to be a right and effective decision Considerable disagreement over vision and mission statements can cause trouble if not resolved Copyright © 2011 Pearson Education, Inc. Ch 2 -27
28.
Vision & Mission
Statements Provide unity of direction Promote shared expectations Consolidate values Project a sense of worth and intent Affirm the company’s commitment to responsible action Copyright © 2011 Pearson Education, Inc. Ch 2 -28
29.
Declaration of Attitude
Broad in scope Broad in scope Generate strategic alternatives Generate strategic alternatives Not overly specific Not overly specific Reconciles interests among Reconciles interests among diverse stakeholders diverse stakeholders Finely balanced between Finely balanced between specificity & generality specificity & generality Copyright © 2011 Pearson Education, Inc. Ch 2 -29
30.
Declaration of Attitude
Arouse positive feelings & Arouse positive feelings & emotions emotions Motivate readers to action Motivate readers to action Generate favorable impression Generate favorable impression of the firm of the firm Copyright © 2011 Pearson Education, Inc. Ch 2 -30
31.
Declaration of Attitude
Reflect future growth Reflect future growth Provide criteria for strategy Provide criteria for strategy selection selection Basis for generating & Basis for generating & evaluating strategic options evaluating strategic options Dynamic in nature Dynamic in nature Copyright © 2011 Pearson Education, Inc. Ch 2 -31
32.
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 Framework for evaluating activities Stated clearly – understood by all Copyright © 2011 Pearson Education, Inc. Ch 2 -32
33.
Mission & Customer
Orientation An effective mission statement: Anticipates customer needs Identifies customer needs Provides product/service to satisfy needs Identifies the utility of a firm’s products to its customers Copyright © 2011 Pearson Education, Inc. Ch 2 -33
34.
Utility of Firm’s
Products to Customers 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. Copyright © 2011 Pearson Education, Inc. Ch 2 -34
35.
Utility of Firm’s
Products to Customers 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 me2011 Pearson Copyright © THINGS. Education, Inc. Ch 2 -35
36.
Products or
Services Markets Customers Mission Technology Employees Components Survival, Growth, Public Profits Image Self-Concept Philosophy Copyright © 2011 Pearson Education, Inc. Ch 2 -36
37.
Copyright © 2011
Pearson Education, Inc. Ch 2 -37
38.
All rights reserved.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Pearson Education, Inc. Ch 2 -38
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