Strategic Management-Chapter 2
Vision Statement
"What do we want to become?"
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.
mission statement 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.
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.
mission statement components
1.Customers-who are the firm's customers? 2. Product or services-what are the firm's major product 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. Self-Concept (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?
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.
mission statement characteristics
A mission statement should: -define what the organization is and what the organization aspires to be -be limited enough to exclude some ventures and broad enough to allow for creative growth -distinguish a given organization from all others -serve as a framework for evaluating both current and prospective activities -be stated in terms sufficiently clear to be widely understood throughout the organization -A good mission statement reflects the anticipations of customers. -The operating philosophy of organizations should be to identify customers' needs and then provide a product or service to fulfill those needs.
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.
mission statement
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
vision statement
The _________ should be short, preferably one sentence, and as many managers as possible should have input into developing the statement. The _________ should reveal the type of business the firm engages.