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CHAPTER 2 • THE BUSINESS VISION AND MISSION 45

FIGURE 2-1
A Comprehensive Strategic-Management Model

Chapter 10: Business Ethics, Social Responsibility, and Environmental Sustainability

Perform
External Audit
Chapter 3

Implement
Generate, Implement Strategies—
Develop Vision Establish Evaluate, Strategies— Marketing, Measure
and Mission Long-Term and Select Management Finance, and Evaluate
Objectives Performance
Statements Chapter 5 Strategies Issues Accounting, R&D,
Chapter 2 Chapter 6 Chapter 7 and MIS Issues Chapter 9
Chapter 8

Perform
Internal Audit
Chapter 4

Chapter 11: Global/International Issues

Strategy Strategy Strategy
Formulation Implementation Evaluation
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 mis-
sion and vision statement.
It can be argued that profit, not mission or vision, is the primary corporate motivator.
4
But profit alone is not enough to motivate people. 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