PART 2
Strategy Formulation
Chapter 2
The Business Vission and
Mission
David, Fred R. [Link] management, concepts and cases ; Pearson Prentice-Hall
Wal-Mart, which has a clear vision/mission and strategic plan. Wal-Mart
is doing great in the global economic recession.
What Do We Want to Become?
• It is especially important for managers and executives in any
organization to agree on the basic vision that the firm strives to
achieve in the long term.
• A vision statement should answer the basic question, “What do we
want to become?”
What Do We Want to Become?
• A clear vision provides the foundation for developing a
comprehensive mission statement.
• Many organizations have both a vision and mission statement, but the
vision statement should be established first and foremost.
• The vision statement should be short, preferably one sentence, and
as many managers as possible should have input into developing the
statement.
What Do We Want to Become?
What is Our Business ?
• asking the question “What is our business?” is synonymous with
asking the question “What is our mission?”
• An enduring statement of purpose that distinguishes one
organization from other similar enterprises, the mission statement is
a declaration of an organization’s “reason for being”.
What is Our Business ?
• Sometimes called a creed statement, a statement of purpose, a
statement of philosophy, a statement of beliefs, a statement of
business principles, or a statement “defining our business,” a mission
statement reveals what an organization wants to be and whom it
wants to serve.
Example Mission Statement
Example Mission Statement
• When employees and managers together shape or fashion the vision
and mission statements for a firm, the resultant documents can
reflect the personal visions that managers and employees have in
their hearts and minds about their own futures.
• Shared vision creates a commonality of interests that can lift workers
out of the monotony of daily work and put them into a new world of
opportunity and challenge
Importance (Benefits) of Vision and Mission
Statements
Utillity of a Firm’s Product
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
Mission Statement Component
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?
Learning Exercise !
Evaluating Mission Statement
• Instructions
Step1 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.
Step2 Write Yes or No in each cell of your matrix to indicate whether
you feel the particular mission statement includes the respective
component
Do not forget to put your name and NIM
Like this ..
1. Customers 2. Products or services—What 3. Markets
Mission statement A. (yes/no)
Mission statement B. (yes/no)
Mission statement C. (yes/no)
4. Technology 5. Concern for survival 6. Philosophy
7. Self-concept—What 8. Concern for public image 9. Concern for employees
Mission Statement
• General Motors
Our mission is to be the world leader in transportation products and
related services. We aim to maintain this position through enlightened
customer enthusiasm and continuous improvement driven by integrity,
teamwork, innovation and individual respect and responsibility of our
employees.
Mission Statement
• North Carolina Zoo
Our mission is to encourage understanding of and commitment to the
conservation of the world’s wildlife and wild places through recognition
of the interdependence of people and nature. We will do this by
creating a sense of enjoyment, wonder and discovery throughout the
Park and in our outreach programs.
Mission Statement
• Samsonite
Our mission is to be the leader in the travel industry. Samsonite’s
ambition is to provide unparalleled durability, security and
dependability in all of its products, through leading edge functionality,
features, innovation, technology, contemporary aesthetics and design.
In order to fill every niche in the travel market, Samsonite will seek to
create strategic alliances, combining our strengths with other partners
in our brands.
Group Task ..
Task Description
1. Writing a Vision and Mission Statement for UISI
2. Conducting Vision and Mission Statement Research for your own
business project
3. Writing a Vision and Mission for Corporate *at the list
• Give the analytical reason for each vision and mission based on
theory.
List of Cases
1. Walt Disney Company
2. JetBlue Airways Corporation
3. Wal-Mart Stores, Inc.
4. Yahoo, Inc.
5. E-bay, Inc.
6. Krispy Kreme Doughnuts
7. Starbucks Corporation
8. Harley Davidson, Inc
9. Ford Motor Company
10. Krafts Food, Inc.
Grouping
• Setiap kelompok terdiri dari Maks. 2 Mahasiswa
• Setiap kelompok wajib menyerahkan tugas dalam bentuk hard copy
dan disertai statement of authorship
• Setiap kelompok akan presentasi di depan kelas, dengan ketentuan
presentasi seperti dalam mata kuliah KPB