strategic-management

FIGURE 2-1
A Comprehensive Strategic-Management Model
Develop Vision
and Mission
Statements
Chapter 2
Perform
External Audit
Chapter 3
Perform
Internal Audit
Chapter 4
Strategy
Formulation
CHAPTER 2 • THE BUSINESS VISION AND MISSION 45
Chapter 10: Business Ethics, Social Responsibility, and Environmental Sustainability
Establish
Long-Term
Objectives
Chapter 5
Generate,
Evaluate,
and Select
Strategies
Chapter 6
Implement
Strategies—
Management
Issues
Chapter 7
Chapter 11: Global/International Issues
Strategy
Implementation
Source: Fred R. David, “How Companies Define Their Mission,” Long Range Planning 22, no. 3 (June 1988): 40.
living documents, and consider them to be an integral part of the firm’s culture realize
great benefits. Johnson & Johnson (J&J) is an example firm. J&J managers meet regularly
with employees to review, reword, and reaffirm the firm’s vision and mission. The entire
J&J workforce recognizes the value that top management places on this exercise, and these
employees respond accordingly.
Vision versus Mission
Many organizations develop both a mission statement and a vision statement. Whereas the
mission statement answers the question “What is our business?” the vision statement
answers the question “What do we want to become?” Many organizations have both a mission
and vision statement.
It can be argued that profit, not mission or vision, is the primary corporate motivator.
But profit alone is not enough to motivate people. 4 Profit is perceived negatively by some
employees in companies. Employees may see profit as something that they earn and
management then uses and even gives away to shareholders. Although this perception is
Implement
Strategies—
Marketing,
Finance,
Accounting, R&D,
and MIS Issues
Chapter 8
Measure
and Evaluate
Performance
Chapter 9
Strategy
Evaluation