Unit 11: Business Modelling

Lesson 2: Business Vision, Mission, Goals,

and Performance Objectives

Contents
Engage 1
Introduction 1
Objectives 1

Explore 2

Explain and Elaborate 3

The Business Vision Statement 3
The Business Mission Statement 4
The Business Goals 6
Performance Objectives 8

Extend 10
Activity 10

Evaluate 11

Wrap Up 13

Bibliography 14
Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives

Engage

Introduction

Fig. 1. The setting of objectives for the business.

Inarguably, businesses need to plan to be successful. These plans will serve as their guide
in operating their businesses, but how do entrepreneurs start to plan to achieve great
success? In this lesson, you will learn how to set the vision, mission, goals, and objectives
for your proposed business.

Objectives
In this lesson, the students will be able to do the following:
● Create a business vision and mission statement.
● Identify and set goals and objectives for the proposed business.

DepEd Competency
Develop a business model. (CS_EP11/12ENTREP-0h-j-13)

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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives

Explore

15 minutes
Guide Questions
Analyze and answer the following questions.

1. Why do entrepreneurs need to set goals for their business?

2. What will be the effect if the goals and objectives for the business are well-planned?

3. How do businesses identify what they want to achieve in the future?

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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives

Explain and Elaborate

The Business Vision Statement

A vision statement is a declaration of what the business wants to achieve and where it
wants to be in the future. It also determines the direction of the business and identifies
which market, technology, products, or customers to focus on.

What for you comprises an effective vision

statement?

Characteristics of Vision Statement

The following are different characteristics of an effectively worded vision statement.

Table 1. Different characteristics of the vision statement

Characteristic Description

The vision statement proposes to the market the kind of

1. Graphic organization that the management wants to create and aspires
to be.

It describes the direction where the business wants to go and

2. Directional
presents plans how to move forward in the future.

The vision statement is specific so that the entrepreneurs are

3. Focused
properly guided on what to do in resources and strategies.

It allows entrepreneurs to change based on situations in the

4. Flexible market, technological advancements, and customer
preferences.

5. Feasible The vision statement is realistic and achievable.

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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives

Characteristic Description

The vision statement is clear on its reasons why the business

6. Desirable
serves its customers’ interests in the long run.

7. Easy to The vision statement is articulated and easy to understand. It

communicate can be simplified into a powerful slogan.

Example: Vision Statement

Business: A fast-food restaurant

To be the country’s best quick-service restaurant bringing

the most efficient means of providing the best meals,
Vision statement:
customer service, and value to make every customer
satisfied

The Business Mission Statement

A business mission statement is a declaration that articulates the purpose of the
business. A good mission statement identifies the products and services of the company
and the customer needs that the business seeks to satisfy. It also states the target market
that the business wants to serve, and the approach to be taken to satisfy its customers.

Elements of Business Mission Statement

The mission statement of the business describes the basic function of the organization in
the society in terms of products and services it offers to the customers. A clear mission
statement should have the following elements:

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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives

Table 2. Different elements of the mission statement

Elements Description

The mission statement should explain why the business

1. Purpose
exists and how it satisfies the needs of its stakeholders.

The mission statement describes the competencies of the

2. Strategy business and its method of competing with other
organizations within the industry.

The mission statement should be transformed into everyday

3. Policies and actions. For example, if the mission statement includes the
standard of delivery of outstanding customer service, policies and
behavior standards should be created and monitored for the
consistency of service.

The values are the beliefs of the people who work in the
business. This would include the principles of the business,
4. Values
such as loyalty and commitment, and guidance on the
expected behavior.

Example: Mission Statement

Business Social Media Application

Creating connections for everyone and helping people share

Mission statement
ideas online

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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives

Tip
The vision statement directs on the future and what the business
organization wants to become. The mission statement directs on
today and what the business organization does to achieve it.

The Business Goals

Fig 2. The setting of business goals

Business goals describe what the business expects to accomplish for a certain period of
time. Setting goals within an organization is a common practice of different organizations. It
intends to increase motivation and determination for managing the firm.

Types of Business Goals

Short-term goals refer to the plans for the business in the near future. It can be for today,
next week, next month, or within the year. Short-term goals are the plans that the business
wants to accomplish soon. On the other hand, long-term goals refer to the plans that the
business wants to do further in the future. These goals require time and planning and are
usually set to a minimum of 12 months.

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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives

SMART Goal Model

Goal writing does not have to be complicated. It only requires commitment and discipline
to follow and complete the required step to achieve results. To do this, organizations use
the SMART goal model to articulate their goal.

1. Specific. The goal should be specific enough for clarity.

2. Measurable. There should be a way to measure the goal of the business. The
entrepreneur must know how to achieve the goal.

3. Attainable. The goal should be possible to accomplish.

4. Realistic. The goal must be realistically achievable given the available resources and
time.

5. Time-bound. There should be a timeline associated with the goal, including the
start and end dates.

Remember
In setting the goals of a business, it should be SMART, which stands
for specific, measurable, attainable, realistic, and time-bound.

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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives

Example: Short-term and Long-term Goals

Short-term Goals Long-term Goals

● Increase the price of the ● Increase the total income of the

product by 5% over the next business by 20% over the next three
six months. years.
● Create a profile for the new ● Reduce production expenses by 10%
social media channel. over the next three years.
● Increase social media ● Increase overall brand awareness.
engagement by posting five
times a week.

Performance Objectives

Fig 3. Setting of performance objectives

Performance objectives refer to the targets of the business that may be set on a
quarterly, semi-annual, or yearly basis. For a business to be efficient and productive, the
performance objectives should be properly laid down to serve as a guide for its operation
and management.

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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives

Key Performance Objectives

The key performance objectives are the following:

1. Quality. This is an important performance objective because it presents the visual

sign of what the business does. It is the fundamental aspect of performance, and it
has a huge influence on the satisfaction of the customers.

2. Speed. Speed relates to the turnover time of customers for ordering a product or
service up to the time they receive it. If the organization can provide a product or
service faster than any other business, it can be an edge and a winning start.

3. Dependability. Dependability means that customers can rely on what the business
has promised and that the business can deliver on what is expected of its products.
It may have an influence on whether the customer will return for future purchases
or not.

4. Flexibility. Flexibility in performance objective means changing operations to match

a customer requirement. Being flexible gives the business the potential to hold a
competitive edge due to a wider variety of products and services.

5. Cost. The cost is an important factor that directly competes on rates. The lower the
production cost of a business, the lower the prices of products. Businesses who
compete on products’ prices want to keep costs as low as possible while still
maintaining the level of quality, speed, dependability, and flexibility that their
customers demand.

Tip
Goals are accomplishments of a company usually broader in scope.
However, objectives are action plans that involve shorter time
periods and more specific and measurable outputs.

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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives

Extend

Activity

Read and analyze the vision statement of a company below. If you were an officer in this
business, what would be your proposed goals in order to achieve the vision?

Business The Toy Store

Our vision is to give joy to the children and bring a smile to

Vision statement
every parent.

Short-term Goals Long-term Goals

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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives

Guide
● Answer the question using bulleted statements.
● Emphasize your goals for the business in both short-term and long-term.

Evaluate

A. Explain your understanding of the following concepts.

1. Vision

2. Mission

3. Business goals

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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives

4. Performance objectives

5. Long-term goals

B. Read the situation below, then follow the given instructions.

A young entrepreneur has a new business that offers affordable cakes and pastries in the
locality of Rizal. Propose a name, product lineup, and vision and mission statements for the
business.

Business Name

Product

Business Vision

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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives

Business Mission

Wrap Up
___________________________________________________________________________________________

● A vision statement is a declaration of what the business wants to achieve and

where it wants to go.
● A mission statement is a declaration that articulates the purpose of the business.
● Business goals describe what the business expects to accomplish for a certain
period of time.
● Performance objectives refer to the targets of the business that may be set on a
quarterly, semi-annual, or yearly basis.

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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives
__________________________________________________________________________________________

Bibliography
Barringer, Bruce R. Preparing Effective Business Plans: An Entrepreneurial Approach. Boston:
Pearson, 2015.

Bhasin, Hitesh. “Business Mission.” Marketing91. Accessed May 16, 2020.

https://www.marketing91.com/business-mission.

Dollinger, Marc. Entrepreneurship: Strategies and Resources, 3rd Edition. New Jersey:
Prentice-Hall, 2003.

Garvey, Joseph. “What are the five business performance objectives?” PeopleGoal.
Accessed May 16, 2020.
https://www.peoplegoal.com/blog/what-are-the-five-performance-objectives.

Grebel, Thomas. Entrepreneurship: A New Perspective. London and New York: Routledge,
2005.

Lotich, Patricia. “Business Goals and Objectives.” Thriving Small Business. Accessed
May 18, 2020. https://thethrivingsmallbusiness.com/examples-of-business-goals/.

“What are the business goals? Definition, how to set business goals and examples.”
Indeed. Accessed May 16, 2020.
https://www.indeed.com/career-advice/career-development/business-goals.

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