The

Business
Vision and
Mission

Chapter Two

Copyright ©2017 Pearson Education, Inc. 2-1

 Learning Objectives
1. Describe the nature and role of vision statements in strategic
management.
2. Describe the nature and role of mission statements in
strategic management.
3. Discuss the process of developing a vision and mission
statement.
4. Discuss how clear vision and mission statements can benefit
other strategic-management activities.
5. Describe the characteristics of a good mission statement.
6. Identify the components of mission statements.
7. Evaluate mission statements of different organizations and
write effective vision and mission statements.

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 The Business Vision and Mission
 The business vision and mission are important components of a
company's overall strategic planning process.
 The vision statement outlines the long-term goals and
aspirations of the business. It describes what the company aims to
achieve in the future and provides a clear direction for the
organization.
 The vision statement should be inspiring and reflect the core values
and purpose of the business.
 The mission statement, on the other hand, defines the
purpose of the company and describes its primary objectives. It
explains why the organization exists, what it does, and who it serves.
 The mission statement should be concise, clear, and actionable,
providing a framework for decision-making and guiding the actions
of employees. Copyright ©2017 Pearson Education, Inc. 2-3
 Vision Statement

A vision statement should

answer the basic question:

“What do we want to become?”

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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.

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 Vision Statement Examples
Facebook: To give people the power to build community and bring
the world closer together.
Google: To organize the world's information and make it universally
accessible and useful.
Apple: We believe in challenging the status quo and thinking
differently. Our vision is to create innovative products that inspire
creativity and empower individuals to change the world.
Amazon: Our vision is to be Earth's most customer-centric company,
where customers can find and discover anything they might want to
buy online.
Tesla: To create the most compelling car company of the 21st
century by driving the world's transition to electric vehicles.
Microsoft: Our vision is to empower every person and every
organization on the planet to achieve more. 2-6
 Vision Statement Examples
 Hormuud Telecom
 Our Vision
 To lead the telecommunication industry with
reliable and efficient services, fulfilling every need
pertaining to the communication of Somali people.
 to be the leading telecommunications company in
Somalia, providing innovative, reliable, and
affordable communication solutions to our
customers. (student comment):

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 Vision Statement Examples
Dahabshil Bank
Vision
To become the leading Islamic bank in the
horn of the Africa offering comprehensive
banking and financial services solutions to a
wide spectrum of private and business
clientele. We aim to always operate in a
profitable, comprehensive and socially
responsible manner..
Copyright ©2017 Pearson Education, Inc. 2-8
 Vision Statement Examples
 Somali National University: Our vision is to be a leading
institution of higher education in Somalia, providing quality
and relevant education that equips students with the skills and
knowledge needed to contribute to the nation's progress.
 Somali Red Crescent Society: To be the foremost
humanitarian organization in Somalia, delivering life-saving
assistance and promoting resilience and community
development in times of crisis.
 Somali Chamber of Commerce and Industry: Our vision is
to be the voice of the Somali business community, advocating
for a conducive business environment and fostering economic
growth and prosperity in the country.
Copyright ©2017 Pearson Education, Inc. 2-9
 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.

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 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

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 Developing Vision & 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.

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 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.

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Benefits of Having a Clear Mission and
Vision

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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
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Characteristics of a Mission Statement

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.

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 Characteristics of a
Mission Statement
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
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 A Customer Orientation
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

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 A Customer Orientation
A mission statement should also:

 serve as a framework for evaluating both

current and prospective activities
 be stated in terms sufficiently clear to be
widely understood throughout the
organization

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 A Customer Orientation
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.

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 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.
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 Considerations
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.

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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?

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Mission Statement Components
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?
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Copyright ©2017 Pearson Education, Inc. 2-25
 Example Mission Statements
 Apple: Our mission is to design the best products and
provide the best user experience possible, while
maintaining our commitment to environmental
responsibility.
 Coca-Cola: Our mission is to refresh the world in
mind, body, and spirit, and inspire moments of
optimism through our brands and actions.
 Starbucks: Our mission is to inspire and nurture the
human spirit – one person, one cup, and one
neighborhood at a time. Tesla: Our mission is to
accelerate the world's transition to sustainable energy.
Copyright ©2017 Pearson Education, Inc. 2-26
 Example Mission Statements
 Facebook: Our mission is to give people the power
to build community and bring the world closer
together. We accomplish this by connecting billions
of people, promoting open and authentic
communication, and creating meaningful experiences
that foster positive social interactions.

Copyright ©2017 Pearson Education, Inc. 2-27

 Example Mission Statements
Hormuud Telecom
Our mission
To deliver superior products and services that
create value for all of our customers and
stakeholders while improving the lives of the
communities we

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 Example Mission Statements
 Dahabshil Bank
 Mission
 To provide quality products, value and opportunity to
the international customers, employees, shareholders
and the community at large. This will be made
possible through a combination of best practice
banking, embracing technology, a commitment to
customer service and good governance

Copyright ©2017 Pearson Education, Inc. 2-29

 Example Mission Statements
 Somali National University: "To provide quality education and
foster intellectual growth, empowering students to become
knowledgeable and skilled professionals who contribute to the
development and progress of Somalia.“
 Somali Red Crescent Society: "To alleviate human suffering,
promote health and well-being, and build resilience in the face of
emergencies and disasters, through humanitarian assistance,
community development, and the promotion of humanitarian
values and principles."
 Somali Chamber of Commerce and Industry: "To promote and
advocate for the growth and development of a vibrant business
environment in Somalia, fostering entrepreneurship, trade, and
investment, and creating opportunities for economic prosperity and
sustainable development."
Copyright ©2017 Pearson Education, Inc. 2-30
 Assignment One
Create a mission and vision statement
The mission statement describes what your
company does in the present. It's comprised of
three parts:
what you do, how you do it, and why you do it.
 A vision statement outlines the company's long-
term goals and aspirations for the future in terms
of its long-term growth and impact on the world

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