Chapter 4 Vision and Mission Edited Dec. 2022

Strategic Management:
Concepts and Cases

Arab World Edition
Fred R. David
Abbas J. Ali
Abdulrahman Y. Al-Aali
Chapter 4:
The Business Vision and
Mission
Ch 2 -1 Copyright © 2011 Pearson Education

Chapter Outline
• Importance of Vision and Mission Statements
• What Do We Want to Become?
• What Is Our Business?
• Characteristics of a Mission Statement
• Components of a Mission Statement
• Writing & Evaluating Mission Statements

Vision & Mission Statements
• Many organizations develop both vision & mission

statements
• Profit & vision are necessary to effectively motivate a
workforce
• Shared vision creates a community of interests
• Participation from diverse managers is important in
developing the mission
Ch 2 -3

Developing Vision & Mission
Clear mission is needed before alternative strategies can be

formulated and implemented
Copyright © 2011 Pearson Education

Ch 2 -4
Vision Statements
Agreement on the basic vision for which a firm strives to achieve in
the long run is critically important to the firm’s success.
WHAT DO WE WANT TO BECOME?
Importance of a Vision Statement

1. A vision statement should answer the basic question, “What do we
want to become?” A clear vision provides the foundation for developing a
comprehensive mission statement.
2. Many organizations have both a vision and a 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.

Vision Statements
Clear Business
Vision
Comprehensive
Mission Statement

Vision Statements
A Shared Vision:
• Creates commonality of interests
• Reduces daily monotony
• Provides opportunity & challenge

Vision Statement Examples
Dubai International Financial Centre

To shape tomorrow’s financial map as a global gateway for capital and
investment.
Alghanim Group
To become Kuwait’s leading diversified conglomerate in
terms of both quality and size, and a significant player in
carefully targeted international markets.

Vision Statement Examples
Oman Telecommunications Company

To be [a] highly innovative telecommunications company.
Jordan River Foundation

To empower society, especially women and children, and in
turn, improve the quality of life to secure a better future for
all Jordanians.

Mission Statements
• WHAT IS OUR BUSINESS?
“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.”
• 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.

Mission Statements
A mission statement:
• Is an enduring statement of purpose
• Distinguishes one firm from another
• Declares the firm’s reason for being
90% of all companies have used a mission statement in

the previous five years.

Mission Statements
• Reveal what an organization wants to be and whom it

wants to serve
• Essential for effectively establishing objectives and

formulating strategies

Mission Statement Examples
Isam K. Kabbani Group

To provide our part of the Arab world with local and reliable
services in a variety of sectors and products. To create
employment to thousand of personnel and in-house training
for hundreds of young Arab graduates in crucial sectors to
the benefit of the IKK Group, the graduates themselves and
their own communities. To set a good example of our basic
business philosophy: “Hire well, train well, pay well and
treat well.”

Saudi Research and Marketing Group

To provide high content media services and products that
are high quality and reliable. To build numerous media
platforms. To continually invent new products to meet the
needs of various social categories in various regions. To
service readers, audience and advertisers.

Gulf Glass Manufacturing

Our Mission is to be the World’s best supplier among the
glass (industries) and to achieve leadership position in Gulf
Market(s) by serving the needs of our customers in
innovative ways. By saying World’s Best we mean a
consistently growing company that supplies quality glass
products and superior service. Being a successful company,
we can facilitate continuous improvement of products and
continue to serve those to whom we are responsible: our
customers and our employees. We believe that these
principle(s) are a blue print for success. If we live by them,
we will achieve our mission by maintaining a spirit of
excellence in everything we do.

Importance of Mission
Benefits from a strong mission
Unanimity of Purpose
Resource Allocation
Mission
Organizational
Climate
Focal Point for Work

Structure

Reasons for Developing a Written Mission Statement
1.To ensure unanimity of purpose within the organization
2.To provide a basis, or standard, for allocating organizational
resources
3.To establish a general tone or organizational climate
4.To serve as a focal point for individuals to identify with the
organization’s purpose and direction, and to deter those who
cannot from participating further in the organization’s activities
5.To facilitate the translation of objectives into a work structure
involving the assignment of tasks to responsible elements within
the organization
6.To specify organizational purposes and the translation of these
purposes into objectives in such a way that cost, time, and
performance parameters can be assessed and controlled.
Copyright © 2009 Pearson Education, Inc.

Ch 2 -17
Publishing as Prentice Hall
Characteristics of Effective Missions
• Broad in scope
• Generate strategic alternatives
• Not overly specific
• Reconciles interests among diverse stakeholders
• Finely balanced between specificity and generality
• Arouse positive feelings and emotions

Characteristics of Effective Missions (Cont’d)
• Motivate readers to action

• Generate favourable impression of the firm
• Reflect future growth
• Provide criteria for strategy selection
• Basis for generating & evaluating strategic options
• Are dynamic in nature
Ch 2 -19

Natural Environmental Perspective
Is Your Firm Environmentally Proactive?
• Preserving the natural resources is good business!

• Reactive environmental policies can be expensive
• Proactive policies force companies to innovate and
upgrade processes
Ch 2 -20

Mission & Customer Orientation
An effective mission statement:
• Anticipates customer needs
• Identifies customer needs
• Provides product/service to satisfy needs

Social Policy & Mission
Managerial philosophy shapes social policy and Affects

development of vision & mission
Responsibilities to:
• Consumers
• Environmentalists
• Minorities
• Communities

Social Policy & Mission
• Social policy should be integrated in all strategic-

management activities.
• Mission should convey the social responsibility of the
firm.

Products
or Services Markets
Customers
Mission Technology
Employees
Components
Survival,
Growth,
Public Profits
Image
Self- Philosophy
Concept

Components and Questions That a Mission Statement
Should Answer
1.Customers: Who are the firm’s customers?

2.Products or services: What are the firm’s major products?
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?
Copyright © 2009 Pearson Education, Inc.

Ch 2 -25
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Strategic Management:

Concepts and Cases

Ch 2 -1 Copyright © 2011 Pearson Education

• Importance of Vision and Mission Statements

• What Do We Want to Become?

• What Is Our Business?

• Characteristics of a Mission Statement

• Components of a Mission Statement

• Writing & Evaluating Mission Statements

Ch 2 -2 Copyright © 2011 Pearson Education

• Many organizations develop both vision & mission

Ch 2 -3 Copyright © 2011 Pearson Education

Clear mission is needed before alternative strategies can be

Copyright © 2011 Pearson Education

WHAT DO WE WANT TO BECOME?

Importance of a Vision Statement

Ch 2 -5 Copyright © 2011 Pearson Education

Ch 2 -6 Copyright © 2011 Pearson Education

Ch 2 -7 Copyright © 2011 Pearson Education

Dubai International Financial Centre

Ch 2 -8 Copyright © 2011 Pearson Education

Oman Telecommunications Company

Jordan River Foundation

Ch 2 -9 Copyright © 2011 Pearson Education

Ch 2 -10 Copyright © 2011 Pearson Education

90% of all companies have used a mission statement in

Ch 2 -11 Copyright © 2011 Pearson Education

• Reveal what an organization wants to be and whom it

• Essential for effectively establishing objectives and

Ch 2 -12 Copyright © 2011 Pearson Education

Isam K. Kabbani Group

Ch 2 -13 Copyright © 2011 Pearson Education

Saudi Research and Marketing Group

Ch 2 -14 Copyright © 2011 Pearson Education

Gulf Glass Manufacturing

Ch 2 -15 Copyright © 2011 Pearson Education

Benefits from a strong mission

Focal Point for Work

Ch 2 -16 Copyright © 2011 Pearson Education

Copyright © 2009 Pearson Education, Inc.

Ch 2 -18 Copyright © 2011 Pearson Education

• Motivate readers to action

Ch 2 -19 Copyright © 2011 Pearson Education

• Preserving the natural resources is good business!

Ch 2 -20 Copyright © 2011 Pearson Education

An effective mission statement:

• Anticipates customer needs

• Identifies customer needs

• Provides product/service to satisfy needs

Ch 2 -21 Copyright © 2011 Pearson Education

Managerial philosophy shapes social policy and Affects

Ch 2 -22 Copyright © 2011 Pearson Education

• Social policy should be integrated in all strategic-

Ch 2 -23 Copyright © 2011 Pearson Education

Ch 2 -24 Copyright © 2011 Pearson Education

1.Customers: Who are the firm’s customers?

Copyright © 2009 Pearson Education, Inc.

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