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
Engage
Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives
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
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
1. Graphic The vision statement proposes to the market the kind of organization that
the management wants to create and aspires to be.
2. Directional It describes the direction where the business wants to go and presents
plans how to move forward in the future.
3. Focused The vision statement is specific so that the entrepreneurs are properly
guided on what to do in resources and strategies.
4. Flexible It allows entrepreneurs to change based on situations in the market,
technological advancements, and customer preferences.
5. Feasible The vision statement is realistic and achievable.
Characteristic Description
6. Desirable The vision statement is clear on its reasons why the business serves its
customers’ interests in the long run.
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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives
7. Easy to The vision statement is articulated and easy to understand. It can be
communicate simplified into a powerful slogan.
Example: Vision Statement
Business: A fast-food restaurant
Vision statement: To be the country’s best quick-service restaurant bringing the most
efficient means of providing the best meals, 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:
Table 2. Different elements of the mission statement
Elements Description
1. Purpose The mission statement should explain why the business exists and
how it satisfies the needs of its stakeholders.
2. Strategy The mission statement describes the competencies of the business and
its method of competing with other organizations within the industry.
3. Policies and The mission statement should be transformed into everyday actions.
standard of For example, if the mission statement includes the delivery of
behavior outstanding customer service, policies and standards should be
created and monitored for the consistency of service.
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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives
4. Values The values are the beliefs of the people who work in the business.
This would include the principles of the business, such as loyalty and
commitment, and guidance on the expected behavior.
Example: Mission Statement
Business Social Media Application
Mission statement Creating connections for everyone and helping people share ideas
online
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
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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives
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.
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.
Example: Short-term and Long-term Goals
Short-term Goals Long-term Goals
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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives
● Increase the price of the product ● Increase the total income of the business
by 5% over the next six months. by 20% over the next three years.
Create a profile for the new social Reduce production expenses by 10% over
● ●
media channel.
the next three years.
● Increase social media engagement ●
by posting five times a week. Increase overall brand awareness.
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.
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.
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Unit 11.2: Business Vision, Mission, Goals, and Performance Objectives
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.
