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44 PART 2 • STRATEGY FORMULATION

TABLE 2-1 Vision Statement Examples
Tyson Foods’ vision is to be the world’s first choice for protein solutions while maximizing shareholder value. (Author comment:
Good statement, unless Tyson provides nonprotein products)
General Motors’ vision is to be the world leader in transportation products and related services. (Author comment: Good statement)
PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate—environment, social, economic—
creating a better tomorrow than today. (Author comment: Statement is too vague; it should reveal beverage and food business)
Dell’s vision is to create a company culture where environmental excellence is second nature. (Author comment: Statement is too
vague; it should reveal computer business in some manner; the word environmental is generally used to refer to natural environment
so is unclear in its use here)
The vision of First Reliance Bank is to be recognized as the largest and most profitable bank in South Carolina. (Author comment:
This is a very small new bank headquartered in Florence, South Carolina, so this goal is not achievable in five years; the statement
is too futuristic)
Samsonite’s vision is to provide innovative solutions for the traveling world. (Author comment: Statement needs to be more specific,
perhaps mention luggage; statement as is could refer to air carriers or cruise lines, which is not good)
Royal Caribbean’s vision is to empower and enable our employees to deliver the best vacation experience for our guests, thereby
generating superior returns for our shareholders and enhancing the well-being of our communities. (Author comment: Statement is
good but could end after the word “guests”)
Procter & Gamble’s vision is to be, and be recognized as, the best consumer products company in the world. (Author comment:
Statement is too vague and readability is not that good)

Drucker says that asking the question “What is our business?” is synonymous with
asking the question “What is our mission?” An enduring statement of purpose that
distinguishes one organization from other similar enterprises, the mission statement is a
declaration of an organization’s “reason for being.” It answers the pivotal question “What
is our business?” A clear mission statement is essential for effectively establishing objec-
tives and formulating strategies.
Sometimes called a creed statement, a statement of purpose, a statement of philoso-
phy, a statement of beliefs, a statement of business principles, or a statement “defining our
business,” a mission statement reveals what an organization wants to be and whom it wants
to serve. All organizations have a reason for being, even if strategists have not consciously
transformed this reason into writing. As illustrated in Figure 2-1, carefully prepared state-
ments of vision and mission are widely recognized by both practitioners and academicians
as the first step in strategic management.
Some example mission statements are provided in Table 2-2. Drucker has the
following to say about mission statements:
A business mission is the foundation for priorities, strategies, plans, and work
assignments. It is the starting point for the design of managerial jobs and, above all,
for the design of managerial structures. Nothing may seem simpler or more obvious
than to know what a company’s business is. A steel mill makes steel, a railroad runs
trains to carry freight and passengers, an insurance company underwrites fire risks,
and a bank lends money. Actually, “What is our business?” is almost always a diffi-
cult question and the right answer is usually anything but obvious. The answer to this
question is the first responsibility of strategists. Only strategists can make sure that
this question receives the attention it deserves and that the answer makes sense and
enables the business to plot its course and set its objectives. 2
Some strategists spend almost every moment of every day on administrative and
tactical concerns, and strategists who rush quickly to establish objectives and implement
strategies often overlook the development of a vision and mission statement. This problem
is widespread even among large organizations. Many corporations in America have not yet
3
developed a formal vision or mission statement. An increasing number of organizations
are developing these statements.
Some companies develop mission statements simply because they feel it is fashion-
able, rather than out of any real commitment. However, as described in this chapter, firms
that develop and systematically revisit their vision and mission statements, treat them as