Unit 3 vision,mission,objectives and.pptx

Strategic vision
 vision is the picture of desired future state of an
organization.
It is a nicely worded one sentence statement.
In the first process of strategic management a
company develop strategic vision.
It specifies the direction that a company intends
to follow in developing and strengthening its
business.
It should be specific and distinctive management
to a particular organization.

Strategic vision continue..
 it is an organizational charter or core values
and principle .
The ultimate sources of priorities ,plans and
goals.
Vision statement that presents a firms
strategic intent design to focus the energies
and resources of the company for achieving a
desired future.

Characteristics of vision
Future focused
Directional
Clear
Feasible clear
Value based
Challenging
Unique
Inspiring

Example of strategic vision
• Chaudhary group: we strive to be a global
leader in customer value.
• Ford: to make the automobile accessible to
every American
• American Express: The worlds most respected
service brand
• Apple : A computer in the hands of everyday
pople.

Benefits of strategic vision
Provides direction
Guide for decision
Shape strategy
Sets priority

Developing strategic vision
The following are some of the consideration
for the development of strategic vision and
mission.
All the key factors such as internal strengths
and weakness ,external changes and trends
emerging needs and service expectations of
customers should be reviewed very carefully .
It should be external and market oriented and
express in inspirational way.

Developing strategic vision …
All the managers from top to lower level
should be involved in the process of
developing the strategic vision.
It enhance commitment towards the
organization .
 It facilitates formulations and implementation
strategies.

The manager should be asked to review
related literature on the statements and
prepare a strategic vision and mission
statement for the organization .
The statement prepared by different
managers should be merged into single
document and distribute the draft statement
to all managers

 a meeting of the managers held for
modification , additions and deletions if
needed and revise the document .
After preparing the statements decisions on
how to communicate it to all managers ,
employee and external stakeholders are
needed .
A videotape may be prepared to explain the
statement

Communicating the strategic vision
Strategic vision should be well communicated
to all the managers, employee and external
stakeholder .
A clearly communicated strategic vision
provides long term direction to the
organization.
The management of an organization must be
able to convince the stakeholder about the
strategic e direction I.e. strategic vision.

Communicating the strategic vision
continue .
Effective communication of strategic vision
help to win the support of organizational
stakeholders.
Hence the vision statement should be
explained by the executive.

Mission
Concept: a mission statement defines the
business in terms of the customers, employees,
suppliers and the community .
The reasons of organizational existence .
An organizational mission is the purpose or
reason for the organizational existences .
The unique purpose that sets a company apart
from others of its type and identifies the scope of
its operations in product, market, and
technologies term.

Meaning and Concept of mission
Mission is the reason for existence of an
organization.
It defines the nature and scope of business.
It provides direction to the organization over the
long term.
Mission is based on vision.
According to Fred David
A mission statement reveals the long term vision
of an organization in terms of what it wants to be
and whom it wants to serve.

Mission Statement Examples
Micro soft : To enable people and business
throughout the word to realize their full
potential.
Face book: To give people the power to share and
make the world more open and connected
Mc donalds : Be the best employer for our people
in each community around the world and deliver
operational excellence to our customers in each
of our restaurants.

Characteristics of mission
Broad in scope
Precise
Inspiring
Multi components
Distinctive
Components of strategy

Importance of Mission Statement
Bring uniformity
Base of resource allocation
Develop organizational culture
Enhance employee ownership
Define the business
Reflects the organizational responsibility
Shows the operating philosophy

Difference between vision and mission
statement
Basis of difference Vision Statement Mission Statement
Objective Its aim is to show where
the organization wants to
be in future.
To aim to show how the
organization will get to
where it wants to be
answer Its answer the question
where do we aim to be?
Its answers the question
what do we do ? What
makes us different?
Time A vision statement talks
about the future
A mission statement talks
about the present leading
to its future
Change A vision statement does
not change even if the
market condition change
A mission statement
changes with the change in
market conditions
Functions It describe where the
organization sees itself
years from now
It lists the broad goals for
which the organization is
formed.ss

Crafting a mission statement
Defining the purpose
Make it broad in scope
Precise
Inspiring
Distinctive

Linking vision and mission with
company values
There is a close linkage between vision
,mission and company value.
Vision is the intended future of an
organization which is developed by the CEO as
the firms most important and prominent
strategic leader.
The vision is the foundation of the mission
statement.

Linking vision and mission with
company values continue…
 A mission statement defines the business in terms of
the customers, employee suppliers and the community
.
 Together vision and mission provide the foundation the
firm needs to choose and implement one or more
strategies.
 To achieve the vision a company needs to have the
purpose of its existence which is mission. Again to
realize the vision and mission it must have some
guiding principle which are called value .
 Hence synchronization among these three components
leads to achievement of organizational objectives.

Setting Performance Objectives
 Objectives are future-oriented desired outcomes.
 They are end results to be achieved.
 Strategic planning is about setting long-term performance objectives.
 Organization are created to achieve objectives.
 They are guided in their decisions and action by objectives.
• Business organization set multiple performance objectives at the same time.
They can be
a. Profitability
b. Survival
c. Growth
d. Efficiency
e. Leadership
f. Social responsibility
g. Reputation
h. Personal need of top management
i. Employee relation and development

Components of objectives
Specific
Measurable
Achievable
Realistic
Timely
Motivating
Flexible
Hierarchical
Congruent across department .

Level of objectives
Corporate level
Business level
Functional level
Individual level

Crafting objectives
Define vision ,mission and values
Environmental analysis
Determination of strategic objective
Formulation of financial objective.

Requirement For Effective Objectives
1. Specific
2. Measurable
3. Acceptable
4. Realistic
5. Time-bound

Level of Objectives
1. Corporate level objectives
2. Business level objectives
3. Functional level objectives
4. Individual level objectives
Corporate level Objectives
a. Vision
b. Mission
c. Strategy

Continued
Business unit level objectives
a. Long term profitability
b. Market share growth
c. Product category scope: product line and
items
d. Positioning among competitors.
e. New business opportunities, etc.

Continued
Functional Level Objectives
a. Cost of production
b. Market coverage in the chosen segment.
c. Level of customer satisfaction
d. Fund generation
e. Programs for human resource development

Continued
Individual Level Objectives
a. Level of output per employees
b. Rejects and waste
c. Sales per salesperson
d. Career planning and development, etc.

Unit 3 vision,mission,objectives and.pptx

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Unit 3 vision,mission,objectives and.pptx