BUSINESS VISION & MISSION

STATEMENT

Objectives and Goals

Vision

“description of something in the future”

“mental perception of the kind of environment an

individual, or an organization, aspires to create within
a broad time horizon and the underlying conditions for
the actualization of this perception”
Vision Statement

A vision statement should answer the

basic question, “What do we want to become?”

The vision statement should be short, preferably

one sentence, and as many managers as possible
should have input into developing the statement.
 A Vision provides strong foundation for developing
a comprehensive mission statement .
 Strategic vision addresses the „where are we going‟
questions and explains the course and direction
chartered by management.
 A strategic vision should provide a clear
understanding of what the business should look like
and provide help to take strategic decisions.
Vision
•Strategic intent should lead to an end.
•That end is the vision of an organization or an individual.
•It is what the firm or a person would ultimately like to become.
•Should be short and specific.
•It should be based on overall purpose of organization
Characteristics

1. It‟s a blue print of the kind of business organization

the management is trying to create and the market
position it would occupy.
2. It should be forward looking a provide strategic
course the management will adopt to help the
company prepare the future
3. Specific and provide guidelines to managers for
making decisions and allocating resources
4. Flexible to changing environment
5. Within realm of companies hope to achieve
6. Appeal to emotions and motivate employees
7. Narrow vision, can focus effort and excite people
8. May not fit to present circumstance, but contributes
to future. Shows picture of future.
9. Should be easy to explain to all stake holders and
preferably short
Vision Statement Examples
Benefits of having a vision

Good visions are inspiring and exhilarating.

Help the organization to prepare for the future.
Clarifies and crystallizes the senior executives views about
the companies long term direction.
Good vision reduces risk-taking and experimentation.
Good vision help to motivate and morale boosting of
employees.
Good visions are competitive, original and unique.
Good visions represent integrity, they are truly genuine and
can be used for the benefit of people.
Limitations of a vision statement

Vague and incomplete

Not forward looking
Too broad
Uninspiring
Not distinctive
Examples

1. BSNL Vision Statement : “To become the largest

telecom service provider in Asia.”

2. Walt Disney Vision Statement : “Make people

happy”

3. Stokes Eye Clinic, Florence, South Carolina :

“Our vision is to take care of your vision.”

VISION

Our Vision is to be the world’s mobile

communication leader – enriching customers’
lives, helping individuals, businesses and
communities be more connected in a mobile
world.
Mission
Organizations relate their existence to satisfying a
particular need of the society. They do it in terms of
their mission.

Mission is a statement which defines the role that

an organization plays in a society.

It refers to the particular need of that society for

instance, its information needs.
Defining Mission

“essential purpose of the organization, concerning

particularly why it is in existence, the nature of the
business it is in, and the customers it seeks to serve
and satisfy.”

“purpose or reason for the organization‟s existence.”

“mission is an enduring statement of purpose that

distinguishes one firm from other similar firm.”
Mission Statement
 Mission statement
 reveals what an organization wants to be and
whom it wants to serve
 Also called a creed statement, a statement of
purpose, a statement of philosophy, a statement
of beliefs, and a statement of business principles
Example

Vision: Widget Manufacturing will be known worldwide as the
highest quality widget producer.

Mission: Widget Manufacturing strives to:

research and integrate the latest, most reliable widget technology,

use the most reliable widget manufacturing processes, and

provide unparalleled customer service to every widget customer.

Note that the vision is not what they do, but where they want to be. The
mission statement outlines what Widget Manufacturing will do. The
differences are clear, and quite simple.
Characteristics

1. Declaration of attitude
2. Customer orientation
3. Declare of social policy
1) Declaration of attitude
 Not designed to specific or to have a concrete end.
 Is declaration of attitude and outlook
 Is meant to provide motivation, general direction, an
image and a philosophy to guide the organization
 Should be flexible, even vague to provide room for
adapting to changing environments and ways of
operations
2) Customer orientation
 Reflects the anticipation of customer.
 The operating philosophy of the organization is

to identify customer needs and then provide a

product or service that fulfill those needs.
Should define:
 „what organization is and what is aspiring to be‟

 „be limited enough to exclude some exclude some

ventures and broad enough to allow for creating

growth
 „Have its own identity that distinguish it from
others‟
 „serve as a framework to evaluate both current and
prospective activities.
 „be stated in terms sufficiently clear to be widely
understood throughout the organization‟
3) Declaration of social policy
 Socially oriented policy suggest that the company
takes into consideration not only profit owed to shares
and what it owes to major stakeholders, but also
seriously responds to responsibilities towards
consumer, environmentalists, minorities.
Mission Statement

“A mission statement is an enduring statement of

purpose that distinguishes one business from other
similar firms. A mission statement identifies the
scope of a firm‟s operations in product and market
terms.”
BSNL mission

“To provide world class state of art technology

telecom services to its customers on demand at
competitive prices.

“ To provide world class telecom infrastructure in its

area of operation and to contribute to the growth
of country‟s economy.”
The mission statement of an organization is normally short,

to the point, and contains the following elements:

Provides a concise statement of why the organization

exists, and what it is to achieve;

States the purpose and identity of the organization;

Defines the institution's values and philosophy; and

Describes how the organization will serve those

affected by its work.

Formulating mission

1. What is the basic purpose of your organization?

2. What is unique about your organization?
3. What is in your company that will make it stand
out in a crowd?
4. Who are, and who should be, your principal
customers?
5. What are the basic beliefs, values and
philosophical priorities of your firm?
Components of mission statement

1. Product or service
2. Customers
3. Technology
4. Survival, growth & profitability
5. Company philosophy
6. Public image
7. employees
1) Product or service
 Invariably includes mention of the product or
service the company offers to customers.
2) customers
 Information in the mission statement describes the
profiles of customers and the organization it
services.
3) Technology
 Components of the mission statement generally

refers to means of production, operations and

organizational functions.
 It include elements such as equipments, materials,
techniques, processes, machines and tools.
4) survival, growth and profitability
 make a general reference to the company‟s
survival and healthy functioning, which include
growth and profitability.
5) Company philosophy :
 It reflects the basic believes, values,

aspirations and ethical priorities of company

that guide the employee in conditioning
organizational function.
Need for an explicit mission
To ensure unanimity of purpose within the organization.
To provide a basis for motivating the use of the
organizations resources.
To develop a basis, or standard, for allocating
organizational resources.
To establish a general tone or organization climate.
To serve as a focal point for those who can identify
with the organization‟s purpose and direction.
MISSION
Driving in a wireless world
Vodafone is primarily a user of technology
rather than a developer of it, and this fact is reflected
in the emphasis of our work programme on enabling
new applications of mobile communications, using
new technology for new services, research for
improving operational efficiency and quality of our
networks, and providing technology vision and
leadership that can contribute directly to business
decisions.
The Process of Developing Vision
and Mission Statements
 Select several articles about these statements
and ask all managers to read these as
background information.
 Ask managers themselves to prepare a vision
and mission statement for the organization.
The Process of Developing Vision
and Mission Statements
 Merge these statements into a single
document and distribute the draft statements
to all managers
 Process should create an “emotional bond”
and “sense of mission” between the
organization and its employees
Importance of Vision and
Mission Statements
1. To ensure unanimity of purpose within the
organization
2. To provide a basis, or standard, for allocating
organizational resources
3. To establish a general tone or organizational
climate
Importance of Vision and
Mission Statements
4. To serve as a focal point for individuals to
identify with the organization’s purpose and
direction
5. To facilitate the translation of objectives into a
work structure
6. To specify organizational purposes
Characteristics of a Mission
Statement
 First, a good mission statement allows for the
generation and consideration of a range of
feasible alternative objectives and strategies
without unduly stifling management creativity.
Characteristics of a Mission
Statement
 Second, a mission statement needs to be
broad to reconcile differences effectively
among, and appeal to, an organization’s
diverse stakeholders
Characteristics of a Mission
Statement
 Stakeholders
 include employees, managers, stockholders,
boards of directors, customers, suppliers,
distributors, creditors, governments (local, state,
federal, and foreign), unions, competitors,
environmental groups, and the general public.
Benefits of Having a Clear Mission
and Vision
A Customer Orientation
A mission statement should:
define what the organization is and what the

organization aspires to be
be limited enough to exclude some ventures

and broad enough to allow for creative growth

distinguish a given organization from all others
A Customer Orientation
A mission statement should also:
serve as a framework for evaluating both

current and prospective activities

be stated in terms sufficiently clear to be widely

understood throughout the organization

A Customer Orientation
 A good mission statement reflects the
anticipations of customers.
 The operating philosophy of organizations
should be to identify customers’ needs and
then provide a product or service to fulfill those
needs.
Mission Statement Components
1. Customers—Who are the firm’s customers?
2. Products or services—What are the firm’s
major products or services?
3. Markets—Geographically, where does the
firm compete?
4. Technology—Is the firm technologically
current?
Mission Statement Components
5. Concern for survival, growth, and
profitability—Is the firm committed to growth
and financial soundness?
6. Philosophy—What are the basic beliefs,
values, aspirations, and ethical priorities of
the firm?
7. Self-concept—What is the firm’s distinctive
competence or major competitive advantage?
Mission Statement Components
8. Concern for public image—Is the firm
responsive to social, community, and
environmental concerns?
9. Concern for employees—Are employees a
valuable asset of the firm?
Characteristics of a
Mission Statement
L n T technology, Engineering and
Construction Company
 Vision
 LnT shall be a professionally managed indian multinational,
committed to total customer satisfaction and enhancing
shareholders value.

Mission
LnT believes that the true and full measures of growth, success
and progress lies beyond balance sheets or conventional economic
indices. It is best reflected in the difference that business and
industry makes to the lives of peoples. Through its social investments
LnT addresses the needs of communities residing in the vicinity of its
facilities, taking sustainable initiative in the areas of health,
education, environment conservation, infrastructure and community
development .
Difference b/w vision and mission
Mission Statement Vision Statement
A Mission statement talks about HOW you will A Vision statement outlines WHERE you want to be.
get to where you want to be. Defines the Communicates both the purpose and values of your business.
About purpose and primary objectives related to your
customer needs and team values.

It answers the question, “What do we do? What It answers the question, “Where do we aim to be?”
makes us different?”
Answer

A mission statement talks about the present A vision statement talks about your future.
Time leading to its future.

It lists the broad goals for which the It lists where you see yourself some years from now. It inspires
organization is formed. Its prime function is you to give your best. It shapes your understanding of why you
internal; to define the key measure or measures are working here.
Function of the organization's success and its prime
audience is the leadership, team and
stockholders.

Your mission statement may change, but it As your organization evolves, you might feel tempted to change
should still tie back to your core values, your vision. However, mission or vision statements explain your
Change customer needs and vision. organization's foundation, so change should be kept to a
minimum.
 What do we do today? For whom do Where do we want to be going forward? When do
we do it? What is the benefit? In we want to reach that stage? How do we want to do
other words, Why we do what we it?
Developing a do? What, For Whom and Why?
statement

Purpose and values of the Clarity and lack of ambiguity: Describing a bright
organization: Who are the future (hope); Memorable and engaging expression;
organization's primary "clients" realistic aspirations, achievable; alignment with
(stakeholders)? What are the organizational values and culture
responsibilities of the organization
Features of an towards the clients?
effective statement
Bad Mission Statement
 Overly broad mission statements, such as that of Albertson's, fail to tell people
exactly what the business does in a single statement. Albertson's lumps what the
company does into its vision instead of its mission statement by saying, "[Our vision
is] to be known as the favourite neighbourhood food and drug retailer in every
market where we do business, with helpful associates, competitive prices and high
quality, fresh products."
 McDonald's, for another example, failed to run a simple grammar check.
McDonald's mission statement includes the following sentence: "Our worldwide
operations are aligned around a global strategy called the Plan to Win, which
center on an exceptional customer experience — People, Products, Place, Price and
Promotion." It should have read "… a global strategy called Plan to Win, which
centers on an exceptional customer experience … ."
 Here's the first sentence of Barnes & Noble's mission statement: "Our mission is to
operate the best specialty retail business in America, regardless of the product we
sell."Here's the third sentence: "To say that our mission exists independent of the
product we sell is to demean the importance and the distinction of being
booksellers."
It's probably better if your mission statement doesn't contradict itself.
 Vision Statement Examples

 WWF: We seek to save a planet, a world of life. Reconciling the needs of human beings and
the needs of others that share the Earth
 Honda, in 1970: We will destroy Yamaha.
 Microsoft: A personal computer in every home running Microsoft software.
 Google: To provide access to the world‟s information in one click.
 Toys R Us: Our vision is to put joy in kids‟ hearts and a smile on parent‟s faces.
 Coca-Cola: Our vision serves as the framework for our Road map and guides every aspect of
our business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.
People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy
people‟s desires and needs.
Partners: Nurture a winning network of customers and suppliers, where together we create
mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
Profit: Maximize long-term return to share owners while being mindful of our overall
responsibilities.
Productivity: Be a highly effective, lean, and fast-moving organization.
Objectives

Objectives represent a managerial commitment to

achieve specified results in a specified period, of time.
They clearly spell out the quantity and quality of
performance to be achieved, the time period, the
process and the person who is responsible for the
achievement of the objective.
“Objectives are end results of planned activity”

“Objectives state what is to be accomplished

by when and should be quantified if possible.”
Example Objectives

Minnesota Mining & Manufacturing (3M)

Financial objectives
1. To achieve 10% growth in earnings per
share.
2. To achieve 20% - 25% return on equity.
3. To achieve 27% return on capital
employed.
Characteristics
1. Objectives form a hierarchy
2. Objectives form a network
3. Multiplicity of objectives
4. Long and short range objectives
Areas of objectives
1. Markets
2. Productivity
3. Innovation
4. Product
5. Profitability
6. Financial resources
7. Physical facilities
8. Organization structure and activities
9. Manager performance and development
10. Employee performance and attitude
11. Customer service
12. Social responsibility
Importance of objectives
1. Objectives help to define the organization in its
environment
2. Objectives help in coordinating decisions and
decision-maker
3. Objectives help in formulating strategies

4. Objectives provide standards for assessing

organizational performance
Objectives of BSNL

National Plan Target of 500 million subscriber base for

the country by December 2010.

Broadband customers base of 20 million in the country

by 2010 as per Broadband policy 2004.
Factors affecting Objectives
1. Forces in the environment
2. Internal forces
3. The value systems of the top executives
Goals
 Goal

Goal is defined as an “intermediate result to be

achieved by a certain time as part of the grand
plan . A plan can, there for have many goals.”
Goals are short term (one year or less) milestones or bench
marks that organizations must achieve in order for long
term long term objectives to be reached.

Goals should be measurable, quantitative, challenging,

realistic, consistent and prioritized.
A set of goals is needed for each
objective that is established in an
organization.
Goals have the following features
They:
1. Are derived from objectives
2. Offer a standard for measuring performance
3. Are expressed in concrete terms

4. Are time bound and work oriented.

Goals are important in – Strategy
implementation

Objectives are in – strategy formulation

Goals are an expected or desired outcome of a planning
process. Goals are usually broad, general expressions of
the guiding principles and aspirations of an organization.

Objectives are precise targets that are necessary to

achieve goals. Objectives are detailed statements of
quantitatively or qualitatively measurable results the plan
hopes to accomplish.
 San Antonio Multi-Service Market
Mission: Maximize Utilization of the Direct Care System in the San
Antonio Multi-Service Market Area
Vision: A World-Class, Multi-Service, Unified Health System Serving San
Antonio and Referred Beneficiary Market
Goals:
Optimize efficiency between direct and private sector care markets
Eliminate duplicate services
Increase synergy and cooperation among San Antonio MTFs
Ensure patient satisfaction with access and quality service
Strengthen Readiness by allocating appropriate mix of resources
Collaborate support functions across the market
Objectives:
Establish the Consult and Appointing Management Office
Increase RWPs / RVUs in the direct care system per the business plan
Consolidate logistical and contracting functions
Realign staff resources to meet patient demand
Establish enrollment sites to meet changing patient demographics
Enroll eligible beneficiaries up to capacity