The Business Vision and Mission Statements Ch 2.docx

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Department
Management and Organizational Studies
Course
Management and Organizational Studies 4410A/B
Professor
L.Graham Smith
Semester
Fall

Description
The Business Vision and Mission 9/25/2012 7:08:00 AM Chapter 2 New Businesses  A new business owner typically believes that the management philosophy of the new enterprise will result in a favourable public image and that this concept of the business can be communicated to and will be adopted by important constituencies Vision and Mission Statements  Vision statement o It is important for managers and executives to agree on the basic long term vision of the firm o A vision statement should answer the basic question “what do we want to become?” o The vision statement should be established first and should be short  Mission statement o Should ask the question “what is our business?” o Declaration of an organization’s reason for being o Reveals what an organization wants to be and whom it wants to serve o There are still many corporations that don’t have a mission statement o Some develop them because they think they are fashionable  Both profit and vision are needed to motivate a workforce effectively Developing Vision and Mission Statements  Steps to developing statements: o The first step to developing these statements is to find several articles about these statements and ask managers to gather some background information from them o Then, ask managers to prepare their own vision and mission statements o A facilitator, or committee of top managers, should then compile all the ideas to one statement and inform the other managers of the final outcome o Then some final edits and deletions or insertions take place to arrive at complete statements  Developing a mission statement should create an “emotional bond” and “sense of mission” between the organization and its employees Importance (Benefits) of Vision and Mission Statements  It has been found that firms with a formalized mission statement have twice the average return on shareholder’s equity  Firms using mission statements have a 30 percent higher return on certain financial measures then those without such s
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