|
 



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MISSION/ VISION,
MISSION/
OBJECTIVES & STRATEGY
 |

 |

 
|
|


M Charting Future Strategic Path

2 Setting Objectives

3 Crafting Strategy
 M
Charting
Future Strategic Path
 R 

Effective strategy making begins with a
vision of where the organization needs to
head


| R 

Early on in the direction

direction
setting process, managers need to
address the question "What is our business and what will it
be?"

Management's views and conclusions about the

organization's future course, the market position it should try
to occupy, and the business activities to be pursued
constitute a =
 =
for
=
for the organization

A strategic vision indicates management's aspirations for the

organization, providing a panoramic view of "what
businesses we want to be in, where we are headed, and the
kind of organization we are trying to create "

CONTINUED
A strategic vision spells out a direction and
describes the destination

Effective visions are clear, challenging, and

inspiring; they prepare an organization for the
future, and they make sense in the marketplace

A well

well
conceived, well

well
worded mission/vision
statement helps managers manage and serves
as a beacon of the enterprise's long

long
term
direction, helping channel organizational efforts
and strategic initiatives along the path
management has committed to following,
building a strong sense of organizational identity
and purpose, and creating employee buy
buy
in

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Defines


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business activities
Highlights   
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Conveys
±  we are,
±  we do, and
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Company


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, not generic²
generic²
so as to give a company its own identity
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A company¶s business is defined by what needs it is trying
to satisfy, by which customer groups it is targeting, and by
the technologies and competencies it uses and the
activities it performs
A good 


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factors
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 is being satisfied
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 value is delivered to customers to satisfy their
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Diversified companies have broader
missions and business definitions than
single

business enterprises
single
 @ 

Mission is the organization¶s basic function
in society (Mintzberg)

Mission outlines why an organization

exists
 ||@|

+ @ 

M PURPOSE
‡ To make profit for shareholders
‡ To provide an apparatus of financial accountability

2 STRATEGIC STANCE
‡ The Products it offers and therefore its competitive position
‡ The Competences by which it hopes to prosper and its way of
competing

3 STANDARDS OF BEHAVIOR
‡ Conversion of mission into every day performance

4 VALUES
‡ Basic beliefs of the organizational members
 @ 


|@|

Formal statement of an organization¶s mission

It captures the essence of why organization exists

It expresses the core values of organization

One of the roles of a mission statement is to give

the organization its own special identity, business
emphasis, and path for development²
development²one that
typically sets it apart from other similarly situated
companies
MISSION STATEMENT MUST ANSWER
FOLLOWING QUESTIONSü
M What is our reason for being?

2 What is our basic purpose?

3 What Business are we in?

4 What is unique or distinctive about our

organization?

5 What do we stand for?

‡ The mission
statement is the
justification for
an organization's
existence
WELL CRAFTED MISSION STATEMENTS ANSWER
QUESTIONSü
THREE FUNDAMENTAL QUESTIONSü

M



 

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It provides focus for strategic decisions

It creates values to guide discretionary decision

decision
making

It strengthens organizational culture

It communicates the nature of organization to insiders and

outsiders

Good mission statements are highly personalized²

personalized²unique to
the organization for which they are developed
 
|@ -

@ 


|@|

Public Relations Exercises

Ignored in Practice

Full of Generalizations

Post Hoc
± Mission does not drive the organization but are used
to rationalize organizational existence
  R
Charts an organization¶s future strategic
course
Defines the business makeup for 5 years
(or more)
Specifies future technology

technology
product
product


customer focus
Indicates capabilities to be developed
Requires managers to exercise foresight
The entrepreneurial challenge in developing a strategic vision
is to think creatively about how to prepare a company for the
future

Forming a strategic vision is an exercise in astute

entrepreneurship, not a time for pipedreams or fantasies about
the company¶s future

Many successful organizations need to change direction not in

order to survive but in order to maintain their success

A well

well
articulated strategic vision creates enthusiasm for the
course management has charted and engages members of
the organization

The best

best
worded vision statements clearly and crisply
illuminate the direction in which an organization is headed
 R 

Vision is a 
,, with a Deadline

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Strategy draws on the Vision


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M What the organization is now?

2 What it could be in an ideal world?

3 What the ideal world would be like?

FROM AN ORGANIZATIONAL PERSPECTIVE,
VISION HAS TO HAVE FIVE COMPONENTS ü
M A Sense of Worthiness

2 An Ability to Inspire

3 An Invitation to Share

4 Clarity and Understandability

5 Achievability
 R 


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A Vision Statement is an attempt to

capture the dream in words

A Vision Statement tells us where we are

going
 R 
 R 

R 
± Proactive plan for ± Process that provides
the future specific direction and
± It is a view of the meaning to the day

day
to
to


future that everyone day activities
can believe in
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You get the vision by reaching each

Objective/ Goal
2
Setting Objectives
 |


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Second direction

direction
setting task is to establish  = 
=
  and 

 for the organization to achieve

Objectives convert the mission statement and

strategic vision into specific performance targets

Objectives need to spell out precisely how much by

when, and they need to require a significant amount of
organizational stretch

Objectives are needed at all organizational levels

!   

A company exhibits


 
when it 

 pursues strategic
objective and concentrates its
competitive actions and energies on
achieving that objective!
3
Crafting Strategy
A strategy is a commitment to undertake
one set of actions rather than another

Sharon M Oster, Professor, Yale University

 +
 

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Third direction

direction
setting step entails 
 
=
  to
achieve the objectives set in each area of the organization
A Corporate Strategy is needed to achieve corporate

corporate
level
objectives;
Business Strategies are needed to achieve business

business
unit
performance objectives;
Functional Strategies are needed to achieve the performance
targets set for each functional department; and
Operating

level Strategies are needed to achieve the
Operating
objectives set in each operating and geographic unit

In effect, an organization's strategic plan is a collection of

unified and interlocking strategies Typically, the strategy

strategy

making task is more top

top
down than bottom

bottom
up Lower

Lower
level
strategies should contribute to the achievement of higher

higher

level, companywide objectives
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Pressures from special interest groups

Glare of investigative reporting

Health and nutrition concerns

Concerns about alcohol and drug abuse

Sexual harassment
Corporate downsizing

Impact of plant closings on communities

Rising/falling interest rates

Economic conditions (good or bad)

Trade restrictions, tariffs, and import

quotas
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Conducting company activities within
bounds of what is considered 
 and
in public interest
Responding positively to emerging societal
priorities and expectations
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action ahead of regulatory confrontation
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larger interest of society as a whole
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A company¶s strategy has to be


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±Fresh moves of rival competitors
±Changes in industry¶s
price

cost
price cost

profit economics
±Shifting buyer needs and expectations
±New technological developments
±Pace of market growth
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A company must have or be able to
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