Chapter # 2 1st Stage of Strategic Management Process

Strategy Formulation: Vision & Mission

References
Strategic Management Concepts & Cases 10th edition Fred R. David Wikipedia.com Internet

Resource Person: Muhammad Adeel Anjum

Strategy Formulation
Vision & Mission Opportunities & Threats Strengths & Weaknesses Long-Term Objectives Alternative Strategies Strategy Selection

Vision
Imagination:

the formation of a mental image of something that is not perceived as real and is not present to the senses; "imagination reveals what could be.

Vision
Vision statement answers the question:

What do we want to become?

Your vision statement is your inspiration, the framework for all your strategic planning.

Why Have a Vision Statement?

It

gives direction to your Business Allows you to live life with a purpose. Creates a positive vision of your future. Allows you to live life to the fullest potential.

To be a model public University providing affordable, quality, higher education opportunities to develop the potentially rich human resource in Balochistan through knowledge-centered teaching and research while maintaining and fostering a high levels of ethical and professional standards and promoting national identity.

"GMs vision is to be the world leader in transportation products and related services. We will earn our customers enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation of GM people."

GM is the world's second-largest automaker. global sales leader for 77 consecutive calendar years from 1931 to 2007. It manufactures cars and trucks in 34 countries. GM employs 244,500 people around the world, and sells and services vehicles in some 140 countries In late 2008 GM received loans from the American, Canadian, and Ontario governments to avoid bankruptcy resulting from the late-2000s recession, record oil prices, health care and retiree expenses, and heavy competition. General Motors filed for a government-assisted bankruptcy protection on June 1, 2009, in the federal court in, New York, with a plan to re-emerge as a smaller and less debt-burdened organization in several months. As ranked by total assets, the bankruptcy is the fourth-largest in U.S. history. GM is set to close a dozen facilities and cut more than 20,000 jobs.

It was thereafter reorganized as a new entity that acquired the most valuable assets. GM became majority owned by the United States Treasury and, to a smaller extent, the Canada Development Investment Corporation[4] and the government of Ontario, with the U.S. government investing US$57.6 billion under the Troubled Asset Relief Program. The company focused its business on building the worlds greatest fastest cars: Chevrolet, Buick, GMC, and Cadillac.

Mission, Vision & Values

The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with our bottler partners

Our VisionOur vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

Mission Statements
What is our business? An enduring statement that distinguishes one organization from the similar enterprises. Declares the firms reason for being

A mission statement answers three key questions: What do we do? For whom do we do it? What is the benefit?

Customers

Products Services

Markets

Technology Employees

Mission Statement Elements

Survival Growth Profit

Public Image

Self-Concept

Philosophy

An Effective Mission Statement -

Anticipates customer needs Identifies customer needs Provides product/service to satisfy needs

Mission Statement

vs.

Vision Statement
"GMs vision is to be the world leader in transportation products and related services. We will earn our customers enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation of GM people."

"G.M. is a multinational corporation engaged in socially responsible operations, worldwide. It is dedicated to provide products and services of such quality that our customers will receive superior value while our employees and business partners will share in our success and our stockholders will receive a sustained superior return on their investment."

Mission Statement

vs.

Vision Statement
Our Vision- Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

Our Mission- It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Mission Statement

vs.

Vision Statement

Functioning as a student-centric institution dedicated to academic excellence, tolerance and fairness. Maintaining and fostering highest ethical and professional values while teaching students to seek knowledge analytically, be creative, communicate effectively and become technologically literate to meet the emerging needs of our society within the global village. Ensuring and supporting faculty and staff to continue their professional and intellectual development

To be a model public University providing affordable, quality, higher education opportunities to develop the potentially rich human resource in Balochistan through knowledge-centered teaching and research while maintaining and fostering a high levels of ethical and professional standards and promoting national identity.

Importance of Mission
Benefits from a strong mission

Unanimity of Purpose

Resource Allocation

Mission
Organizational Climate Focal point for work structure

WRITING A MISSION STATEMENT

Some researchers agree that it should be kept to between 30 and 60 words Some organizations have mission statements that are only one sentence, while others are a paragraph. No universally followed guideline for writing mission statement. At a minimum, each mission statement should answer the following three questions: (1) What are the opportunities or needs the organization addresses? (2) What does the organization do to address those needs? and (3) What principles and values guide the organization?

Avoiding jargon will keep the mission statement clear and easy to understand. It should be unique and identify the organization. A mission statement is often what sets one company apart from the competition. It should outline the organization's competitive advantages and differentiate it from everyone else. Specific products/services offered as well as markets or customers should be included. Also a general business definition, behavioral standards, and desired competitive position can be added to a strong mission statement.

Vision Statement

vs

Mission Statement

Mission serves as an ongoing The Vision describes a and time-independent guide future identity The Mission describes why it is A Vision statement is important to achieve the Vision more specific in terms A Mission statement defines the purpose or broader goal for of both the future state being in existence or in the and the time frame business and can remain the same for decades if crafted well A vision statement, on your mission is what you do the other hand, best every day describes how the A mission statement explains future will look if the what the organization does, for whom and the benefit organization achieves its mission management versus leadership.

for Disease Control Mission: To promote health and quality of life by preventing and controlling disease, injury, and disability Vision: Healthy People in a Healthy World Pakistan Department of Health Mission: To protect, maintain and improve the health of all Pakistanis. Vision: Keeping All Pakistanis Healthy

Centers

PepsiCo Mission
PepsiCos mission is to increase the value of our shareholders investment. We do this through sales growth, cost controls, and wise investment resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.

Ben & Jerrys Mission

Ben & Jerrys mission is to make, distribute and sell the finest quality all-natural ice cream and related products in a wide variety of innovative flavors made from Vermont dairy products. To operate the Company on a sound financial basis of profitable growth, increasing value for our shareholders, and creating career opportunities and financial rewards for our employees. To operate the Company in a way that actively recognizes the central role that business plays in the structure of society by initiating innovative ways to improve the quality of life of a broad communitylocal, national and international.

Mission Statement Evaluation Matrix

COMPONENTS Concern for Survival, Growth, Profitability

Organization

Customers

Products Services

Markets

Technology

PepsiCo Ben & Jerry's

Yes No

No Yes

No Yes

Yes Yes

No No

Mission Statement Evaluation Matrix

COMPONENTS

Organization

Philosophy

SelfConcept

Concern for Public Image

Concern for Employees

PepsiCo Ben & Jerry's

Yes No

No Yes

No Yes

No Yes

Which comes first? The mission statement or the vision statement? That depends. If you have a new start up business, new program or plan to re engineer your current services, then the vision will guide the mission statement and the rest of the strategic plan. If you have an established business where the mission is established, then many times, the mission guides the vision statement and the rest of the strategic plan. Either way, you need to know your fundamental purpose - the mission, your current situation in terms of internal resources and capabilities (strengths and/or weaknesses) and external conditions (opportunities and/or threats), and where you want to go - the vision for the future. It's important that you keep the end or desired result in sight from the start

This list of college dropout billionaires

Lawrence Joseph "Larry" Ellison (born August 17, 1944) is an American business magnate, co-founder and chief executive officer of Oracle Corporation, a major enterprise software company. As of 2010 he is the sixth richest person in the world, with a personal wealth of $27 billion Mark Elliot "Zuck" Zuckerberg (born May 14, 1984) is an American computer programming prodigy, dot-com entrepreneur and philanthropist who co-founded the social networking site Facebook and founded the Start-up: Education foundation. Zuckerberg founded Facebook with fellow classmates Dustin Moskovitz, Eduardo Saverin, and Chris Hughes while attending Harvard. He is a 24% shareholder of Facebook. Steven Paul Jobs (born February 24, 1955) is an American business magnate and inventor. He is well known for being the co-founder and chief executive officer of Apple. Jobs also previously served as chief executive of Pixar Animation Studios; he became a member of the board of The Walt Disney Company in 2006, following the acquisition of Pixar by Disney. William Henry "Bill" Gates III (born October 28, 1955)[2] is an American business magnate, philanthropist, author and chairman[3] of Microsoft, the software company he founded with Paul Allen. He is consistently ranked among the world's wealthiest people[4] and was the wealthiest overall from 1995 to 2009 Mukesh Dhirubhai Ambani (born on 19 April 1957) is an Indian business magnate and the chairman and managing director of Reliance Industries,[4] the largest private sector enterprise in India, a Fortune 500 company,[5] and one of the largest private sector conglomerates in the world. His personal stake in Reliance Industries is 48%