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42 PART 2 • STRATEGY FORMULATION

This chapter focuses on the concepts and tools needed to evaluate and write business
vision and mission statements. A practical framework for developing mission statements is
provided. Actual mission statements from large and small organizations and for-profit and
nonprofit enterprises are presented and critically examined. The process of creating a
vision and mission statement is discussed. The global economic recession has resulted in
many firms changing direction and thereby altering their entire vision and mission in order
to survive. For example, in the Philippines, the largest food and beverage company, San
Miguel Corp., recently diversified by purchasing Petron Corp., the country’s largest oil
refiner. San Miguel also purchased Meralco, formally named Manila Electric, thus broad-
ening its mission to include energy-related businesses.
The boxed insert company examined in this chapter is Wal-Mart, which has a clear
vision/mission and strategic plan. Wal-Mart is doing great in the global economic
recession.

Doing Great in a Weak Economy

Wal-Mart

hen most firms were struggling in 2008, Wal-
WMart increased its revenues from $348 billion in
2007 to $378 billion in 2008. Wal-Mart’s net income
increased too, from $11.2 billion to $12.7 billion—quite
impressive. Fortune magazine in 2009 rated Wal-Mart
as their 11th “Most Admired Company in the World” in
terms of their management and performance.
Wal-Mart Stores continues to expand internation-
ally, particularly in emerging countries such as Brazil and
India. From 2009 to 2013, Wal-Mart plans to devote 53
percent of its international spending to emerging mar-
kets, up from 33 percent in the prior five years. The
company plans include remodeling U.S. stores rather
than adding new stores and going to smaller stores. Wal-Mart recently revamped the electronics depart-
Wal-Mart’s capital expenditures in the year ending ments in its 3,500 U.S. stores to make them much
January 2010 were $5.3 billion, up from $4.8 billion the more interactive and roomier. The company wants
prior year. all the business that Circuit City’s failure left and
As electronics retailer Circuit City was declaring also wants all of Best Buy’s and Amazon’s business.
bankruptcy and liquidating in 2008, Wal-Mart was Wal-Mart now carries sophisticated electronics prod-
beefing up its electronics product line, directly attacking ucts such as Research in Motion Ltd.’s Blackberry
Best Buy. The two firms today are in a dogfight to smart phones, Palm Inc.’s Pre smart phone, and
obtain the millions of electronics products customers. Blu-ray disc players. Wal-Mart in June 2009 began
Best Buy was Fortune’s 44th “Most Admired Company selling Dell Inc.’s new Studio One 19 touch-screen
in the World” in 2009. computers.