Vision

• I/O and resource-based models complement each other in that (I/O)

  focuses outside the firm while (resource-based) focuses inside the firm.
• After studying the external environment and the internal organization, the firm has the information it needs to form its vision and a mission.
• Stakeholders learn a great deal about a firm by studying its vision and mission.
• those who affect or are affected by a firm’s performance

  stakeholders
• a key purpose of vision and mission statements is to inform stakeholders of what the firm is, what it seeks to accomplish, and who it seeks to serve
• is a picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve

  vision
• a vision statement articulates the ideal description of an organization and gives shape to its intended future.
• a vision statement points the firm in the direction of where it would like to be in the years to come
• An effective vision stretches and challenges people as well.
• To be innovative, Carmine Gallo explains that one has to think differently about the firm’s products and customers —“sell dreams not products”—and differently about the story to “create great expectations.”
• vision statements reflect a firm’s values and aspirations and are intended to capture the heart and mind of each employee and, hopefully, many of its other stakeholders.
• A firm’s vision tends to be enduring while its mission can change with new environmental conditions.
• A vision statement tends to be relatively short and concise, making it easily remembered.
• Our vision is to be the world’s best quick service restaurant.

  McDonald's
• To make the automobile accessible to every American.

  Ford Motor Company
• As a firm’s most important and prominent strategic leader, the CEO is responsible for working with others to form the firm’s vision.
• most effective vision statement results when the CEO involves a host of stakeholders to develop it
• CEO and stakeholders need to develop a clear and shared vision for it to

  be successful
• a vision statement should be clearly tied to the conditions in the firm’s

  external environment and internal organization
• the decisions and actions of those involved with developing the vision, especially the CEO and the other top-level managers, must be consistent with that vision.