CHAPTER-TWO

Vision , Mission, objectives

and values
 Cont`d…

• Strategy Formulation is the development of

long-range plans for the effective
management of environmental opportunities
and threats, in light of corporate strengths
and weaknesses.
• It includes vision, defining the corporate
mission, specifying achievable objectives,
developing strategies, and setting policy
guidelines.
 2.1 Vision Statement

• Sometimes called a picture of your company in the

future but it’s so much more than that.
• It is your inspiration, the framework for all your
strategic planning.
• It answers the question, “Where do we want to go?”.
• A clear vision provides the foundation for developing a
comprehensive mission statement
 Cont`d…
• It articulates the position that a firm would
like to attain in the distant future. It is “big
picture” thinking with passion.
• A vision usually precedes the mission
statement.
• It is usually short, concise and preferably
limited to one sentence.
• Vision: The overall picture of what an
organization wants to achieve in the future.
• Goals: Statements that outline the mileposts
needed to achieve the vision.
• Objectives: Specific actions and timelines that
are required to achieve the goals. Objectives
are the concrete deliverables that make the
goal come to life.
 steps for developping vision
• Assess your current situation-Conduct a SWOT analysis,
examine your macro and micro environment.
• Define your purpose and values- Your purpose is your reason for
being, your mission, and your impact. Your values are your core
beliefs, principles, and standards.
• Set your goals and objectives-Your goals are your desired
outcomes, your aspirations, and your targets. Your objectives are
your specific, measurable, achievable, relevant, and time-bound
actions that support your goals.
• Craft your vision statement-A vision statement is a brief and
memorable statement that describes your desired future state,
your direction, and your aspiration.
• Communicate and implement your vision- Communication is
the process of sharing your vision with your team and
stakeholders,process of putting your vision into action,
 Purpose of Vision
• It is used as an initial force that brings people
together.
• It can provide energy, momentum and strengths
to individuals.
• It inspires stakeholders.
• It is life-blood of an organization.
• It helps to see what you are working towards.
• It provides bases for partnership
• It binds an organization together in times of crises
 Features of an effective vision include:

A vision statement must be:

• Clear and lacks ambiguity. • Alignment with

• Short and concise. organizational values and
• Vivid and clear picture: Easily culture.
remembered. • Simple.
• Description of a bright future. • Positive.
• Memorable and engaging wording. • Emotional.
• Realistic aspirations: - Capture the • Stretching.
heart and mind of employees and
• Challenging.
stakeholders.
 Cont`d…
• Examples
• “To be the world leader in transportation
products and related services.” (General
Motors)
• “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’s vision when
established by Henry Ford)
 2.2. Mission Statement
• An organization’s mission is its purpose, or
the reason for its existence.
• A mission statement is a concise declaration
of an organization's purpose, including its core
values, goals, and the reason it exists.
• It articulates who the organization serves,
what it provides, and the impact it aims to
make.
 Cont`d….
• A well-conceived mission statement defines the
fundamental, unique purpose that sets a company
apart from other firms of its type and identifies the
scope of the company’s operations in terms of
products (including services) offered and markets
served.
• It puts into words not only what the company is now,
but also a vision of what it wants to become.
• The mission statement answers three (or
sometimes four) basic questions about the
organization:
• 1. Whom does the organization serve?
• 2. What does the organization do?
• 3. Why does the organization do it?
• 4. [Optional] How does the organization do it
 steps needed to develop mission
Step 1: Gather Information, Form a Planning Team and
Organize a Meeting- planning team will include
representation from the board of directors, senior management
and staff of the organization .
Step 2: Define Whom the Organization Serves-
beneficiaries,target population,characteristics of the target
population ,Where is the target population or market locate
Step 3: Clarify What the Organization Does-Describe the
purpose of the organization: what it does , what it will do.
Step 4: Explain Why the Organization Does What it Does-Why
do we do what we do?
Step 5: Describe How the Organization Delivers
Products and Services- Define the strategies, means
and resources by which the organization delivers
services and meets the needs of its clients or
beneficiaries.
Step 6: Write the Mission Statement-Compose a
smaller team—one or two people who are good writers
—to pull together the deliberations into a one or two
sentence mission statement
Example:- “To organize the world’s information and
make it universally accessible and useful”.
 Characteristics of good mission

• Feasible:
– It should not be an impossible statement.
– In addition it should be realistic and achievable.
• Precise
– It should not be so narrow to restrict the organization’s
activities nor should it be too broad to make itself
meaningless.
• Clear:
– should be clear enough to lead to action and should not be
a high sounding set platitudes meant for publicity purposes.
 Cont`d…
• Motivating: should be inspiring for members
of the organization or being its customers.
• Distinctive: the indiscriminate one (random,
arbitrary) is likely to have little impact.
• Indicate major components of strategy: along
with the organizational purpose.
• Indicate how objectives are to be
accomplished: it should provide clues
regarding the manner in which the objectives
are to be accomplished.
 Mission Statement
Components
• Effective Mission statement should include the following
components.
• Customers—who are the firm’s customers?
• Products or services—what are the firm’s major
products or services?
• Markets—geographically, where does the firm compete?
• Technology—is the firm technologically current?
• Concern for survival, growth, and profitability—is the
firm committed to growth and financial soundness?
 Cont`d…

• Philosophy—what are the basic beliefs, values,

aspirations, and ethical priorities of the firm?
• Self-concept—what is the firm’s distinctive
competence or major competitive advantage?
• Concern for public image—Is the firm responsive
to social, community, and environmental
concerns?
• Concern for employees—Are employees a
valuable asset of the firm?
 Vision Vs Mission

Mission Vision

Mission describes what the Vision describes what the

organization is now organization would like to become.

mission statement tells why your a vision statement tells you where
business exists, you are going. It paints a
compelling word picture of a
desired future state.

Mission gives day-to-day relevance Vision inspires stretching beyond

what may seem possible.
to work

Mission occasionally changes to Visions, like dreams, will change as

become congruent with a new they are fulfilled.
vision.
 2.3. Setting Goals and Objectives

1.Objective
• Objectives are the end results of planned
activity.
• They should be stated as action verbs and tell
what is to be accomplished by when and
quantified if possible.
• The achievement of corporate objectives
should result in the fulfillment of a
corporation’s mission.
 Objectives
-Indicates how goals are achieved.
– They Are Desirable outcomes of organizational
activity.
– Are also more specific than goals.
– It is a very specific statement on what is to be done
to accomplish the mission.
A statement of an objective makes the following
clear:
• What is to be accomplished?
• How much is to be accomplished?
• By when it is to be accomplished?
• By whom it is to be accomplished?
 Characteristics of Objectives

• Objective should be SMART

• Examples of Goals, Objectives and Targets
• Goal: earn $20,
• Objective: sell second hand shirts for $2 each,
• Target: 10 people
• Other examples of objectives
– To achieve 10% annual growth in earning per share.
– To achieve 20% - 25% return on equity.
– For 35 parents each week with to have a 2 hour break
from their children for the next 12 months.
QUIZ
– Increase the number of variety research output that
improve productivity from the existing 5% to 20% by the
end of 2010.
– Q; - Set Goal and target?
 Goals

• Goal is a broad, long-term outcome that a

company or organization aims to achieve.
• Goal is generally broad and longer term
• Goals: Statements that outline the mileposts
needed to achieve the vision.
 Difference between Objectives and Goals

Goals are:- Objectives are:-

• General directions that. • Specific and
may not be measured. measurable.
• Broad. • Narrow.
• General intentions. • Precise.
• Intangible.
• Tangible.
• Abstract.
• Concrete.
• can't be validated as is.
• Validated
 2.4. Business values(SB)

• A firm’s values are the beliefs, traits, and behavioral

norms that the firm’s personnel are expected to
display while undertaking activities and pursuing the
strategic vision and mission.
THE END