MGMT 478 Ch.2

An effective vision statement should exhibit 5 characteristics. What are they?

Clear, futuristic, concise, unique, inspiring

In his​ company's vision​ statement, Jorge includes what the company should accomplish within five years. This exemplifies the​ ______ characteristic of effective vision statements.

Futuristic

Example Mission Statements

Hershey • We bring sweet moments (2) of Hershey happiness (6) to the world (3) every day. • Author comment: Statement lacks six components: Customers (1), Technology (4), Survival/Growth/Profits (5), Distinctive Competence (7), Public Image (8), and Employees (9); 12 words A Proposed Mission Statement for Hershey • We aim to serve consumers of all ages and lifestyles (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

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 rallying opposition; all in the firm need to be onboard with the firm's mission.

Exemplary Proposed Mission Statement

Rite Aid • We are on a mission to offer the best possible drugstore experience for people of all 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' overall health through our wellness 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 timely and dependable parcel 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)

What should a vision statement reveal?

The type of business a firm conducts

What characteristic of effective vision statements reveals the firm's competitive advantage?

Unique

Vision statement

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. • Dr Pepper Snapple: to be the best beverage business globally; our brands are synonymous with refreshment, fun, and flavor today and tomorrow. • Starbucks: to be the premier purveyor of the finest coffee in the world while maintaining uncompromising principles as we steadily grow.

which of the following is a benefit to the organization of hiring an outside consultant/facilitator to assist in developing a vision and mission statement

a consultant possesses unbiased views

Which of the following would NOT characterize a good mission​ statement?

a good mission statement is time-sensitive

An excellent vision statement should:

describe a desired future state

Vision statements should be both​ ______ and challenging.

doable

a mission statement should be written

from a customer perspective

a meta-analysis of 20 years of empirical research on mission statements concluded there is a positive relationship between mission statement s and

measures of financial performance

characteristics of mission statements

nine componenets customers, products or services, markets, technology, concern for survival/growth/profits, philosophy, self-concept, concern for public image, concern for employees reconciliatory enduring

Which of the nine components of a mission statement answers the​ question, "What are the basic​ beliefs, values, and aspirations of the​ firm?"

philosophy

Core values statement

specifies a firm's commitment to integrity, fairness, discipline, equal employment opportunity, teamwork, accountability, continuous improvement, or other such exemplary attributes.

Perhaps the best way to develop a skill for writing and evaluating mission statements is to​ ______.

study actual company missions

Ten Benefits of Having a Clear Mission and Vision

1. Achieve clarity of purpose among all managers and employees. 2. Provide a basis for all other strategic planning activities, including internal and external assessment, establishing objectives, developing strategies, choosing among alternative strategies, devising policies, establishing organizational structure, allocating resources, and evaluating performance. 3. Provide direction. 4. Provide a focal point for all stakeholders of the firm. 5. Resolve divergent views among managers. 6. Promote a sense of shared expectations among all managers and employees. 7. Project a sense of worth and intent to all stakeholders. 8. Project an organized, motivated organization worthy of support. 9. Achieve higher organizational performance. 10. Achieve synergy among all managers and employees.

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. 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. Distinctive competence-What is the firm's major competitive advantage? 8. Public image-Is the firm responsive to social, community, and environmental concerns? 9. Employees-Are employees a valuable asset of the firm?

Developing Vision and Mission Statements

A widely used approach includes: • Select several articles about these statements and ask all managers to read these as background information. • Ask managers themselves to prepare a vision and mission statement for the organization. • A facilitator or committee of top managers should then merge these statements into a single document and distribute the draft statements to all managers. • A request for modifications, additions, and deletions is needed next, along with a meeting to revise the document.

In great companies, core values

almost never change

Which of the following is TRUE concerning a mission​ statement's emotional​ bond?

an emotional bond exists when people identify with the underlying values and behavior of a firm

to create an excellent vision and mission, a firm needs core values. These core values ____ for the vision and mission

create an ethical foundation

Which of the following is NOT cited by King and Cleland as a benefit of carefully developing a written mission​ statement?

doing so ensures all customers are aware of all product/service offerings

​Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in the markets it serves. In doing​ so, Dell says it will meet customer expectations of highest​ quality; leading​ technology; competitive​ pricing; individual and company​ accountability; best-in-class service and​ support; flexible customization​ capability; superior corporate​ citizenship; and financial stability. Which of the nine components of a mission statement is​ missing?

employees

The best way to develop the ability to write and evaluate mission statements is to​ ______.

study actual company missions

the principal benefit of vision and mission statements as tools of strategic management is derived from

their specification of the ultimate aims of a firm

As many managers as possible should be involved in the process of developing vision and mission statements because​ ______.

they will become committed to the organization

Mission statement

• A declaration of an organization's "reason for being." • It answers the pivotal question "What is our business?" • It is essential for effectively establishing objectives and formulating strategies. • It reveals what an organization wants to be and whom it wants to serve • It 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. 1. Broad in scope; does not include monetary amounts, numbers, percentages, ratios, or objectives 2. Fewer than 150 words in length 3. Inspiring 4. Identifies the utility of a firm's products 5. Reveals that the firm is socially responsible 6. Reveals that the firm is environmentally responsible 7. Includes nine components: customers, products or services, markets, technology, concern for survival/growth/profits, philosophy, self-concept, concern for public image, concern for employees 8. Reconciliatory 9. Enduring

Considerations

• 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.

Importance of Vision and Mission Statements

• To make sure all employees/managers understand the firm's purpose or reason for being. • To provide a basis for prioritization of key internal and external factors utilized to formulate feasible strategies. • To provide a basis for the allocation of resources. • To provide a basis for organizing work, departments, activities, and segments around a common purpose.