Every company aims to be successful and satisfy the desires of

all stakeholders and employees. But they can only do this with a clear policy
about running the company. All firms must clearly define their objectives and
how they can achieve them. There must be clear guidelines about how to
operate the business and what regulations they need to follow. Similarly, the
company must be steered properly to reach its goals. Every organisation needs
to have a clear business policy and strategic management.

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Business Policy - Definition and

Features
Definition of Business Policy

Business Policy defines the scope or spheres within which decisions can be taken by the
subordinates in an organization. It permits the lower level management to deal with the
problems and issues without consulting top level management every time for decisions.

Business policies are the guidelines developed by an organization to govern its actions.
They define the limits within which decisions must be made. Business policy also deals with
acquisition of resources with which organizational goals can be achieved.

Business policy is the study of the roles and responsibilities of top level management,
the significant issues affecting organizational success and the decisions affecting
organization in long-run.

Features of Business Policy

An effective business policy must have following features-

1. Specific- Policy should be specific/definite. If it is uncertain, then the implementation

will become difficult.
2. Clear- Policy must be unambiguous. It should avoid use of jargons and connotations.
There should be no misunderstandings in following the policy.
3. Reliable/Uniform- Policy must be uniform enough so that it can be efficiently
followed by the subordinates.
4. Appropriate- Policy should be appropriate to the present organizational goal.
5. Simple- A policy should be simple and easily understood by all in the organization.
6. Inclusive/Comprehensive- In order to have a wide scope, a policy must be
comprehensive.
 7. Flexible- Policy should be flexible in operation/application. This does not imply that
a policy should be altered always, but it should be wide in scope so as to ensure that
the line managers use them in repetitive/routine scenarios.
8. Stable- Policy should be stable else it will lead to indecisiveness and uncertainty in
minds of those who look into it for guidance.

Difference between Policy and Strategy

The term “policy” should not be considered as synonymous to the term “strategy”.
The difference between policy and strategy can be summarized as follows-

1. Policy is a blueprint of the organizational activities which are repetitive/routine in

nature. While strategy is concerned with those organizational decisions which have
not been dealt/faced before in same form.
2. Policy formulation is responsibility of top level management. While strategy
formulation is basically done by middle level management.
3. Policy deals with routine/daily activities essential for effective and efficient running of
an organization. While strategy deals with strategic decisions.
4. Policy is concerned with both thought and actions. While strategy is concerned
mostly with action.
5. A policy is what is, or what is not done. While a strategy is the methodology used to
achieve a target as prescribed by a policy.

Understanding Business Policy

Companies need to sustain and grow. Towards this, people at all levels must
make crucial decisions. A business policy is a set of guidelines that define the
limits within which people at a subordinate level can make decisions and solve
issues. It allows lower-level managers to find solutions for various problems
without always approaching top management. A clear policy also ensures that
the decisions are consistent and contribute to the company’s growth. The
combination of business policy and strategic management makes companies
function successfully and achieve their objectives.

A good business policy and strategic management give equal opportunities to all
employees to move forward professionally. The other advantage of having a
clear policy is that it keeps the company compliant with all the statutory
regulations that govern the functioning of an organisation. It will also keep the
employees working within the company’s rules and regulations. Although
different companies have different business policies, there are certain basic
features in every business policy.
Importance Of Business Policies

When discussing business policy and strategic management, it is necessary to

understand why a business policy is important to the company. Firstly, it is
crucial as it impacts everything like legal liabilities, employee satisfaction and the
company’s public image. Strong business policies ensure a common expectation
about everything in the company. All the employees know the outcome of every
action. As there are policies on all the organisation’s activities, everyone can
expect to get the same treatment at all times. Let us see the benefits of a clear
business policy.

Better Coordination

Policies control everything in an organisation. It means that similar actions will

have the same outcome. Employees can anticipate every course of action in the
company. It leads to better coordination between the various departments. As
all the workers know how processes should be performed, there is no discord
between departments. When there is uniform action, all the activities will lead to
the achievement of company objectives. It also results in stimulating initiatives
by employees. A clear business policy and strategic management result in
everyone working towards a common goal.

Quick Decision Making

Managers at all levels need to make decisions about department activities.

Having a clear business policy helps these people decide on matters without any
doubt because the policy lays everything down. They need not go to their
superior every time they must make a decision. As part of the business policy
and strategic management, companies also lay down the limits of the decisions
employees at each level can make. Lower-level managers also gain confidence
and become ready to take up more responsibilities.

Effective Control

A well-defined business policy gives the top management control over all
activities in the firm. When there are clear directions about how things must
happen in an organisation, it makes it easy for the top management to assess
the performance of every employee. Moreover, it also gives the managers more
control over how things work in the firm. There are no deviations from the
methods that are laid down. When there is firm business policy and strategic
management, it is easy to find deviations and correct them immediately.

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Decentralisation

A business policy mentions the roles and responsibilities of every employee in

the firm. It means that there is no need for constant supervision from the
managers. Decision-making is also left to the managers of each department,
leaving the top management with enough time to plan the firm’s development
and other creative activities. Managers get control over employees, and this
delegation of authority helps in improved efficiency as there is supervision at
every level.

Good Office Atmosphere

Business policies have precise guidelines about how each employee must
behave in the office and what roles they must play. It helps to develop a warm
and harmonious office environment. As their duties are laid down, there is no
confusion about the workers’ role, which avoids unnecessary disputes. Business
policy and strategic management ensure that every staff member fulfils their
responsibilities and works towards achieving company objectives.

Cost Reduction

Cost reduction is necessary for every company as the market becomes more
competitive. It can be achieved only if systems are in place to purchase raw
materials and services. A clear business policy lays down guidelines about
selecting vendors and purchasing goods by the firm. Such policies help the
company get the best prices for the items it purchases. Having clear purchase
policies also helps to ensure there is no fraud or misuse of funds. Proper
procedures must be followed, and this results in transparency in purchases.

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What Is Strategic Management?

While policies dictate how the company and its employees must function,
strategic management lays down the path for the organisation to operate to
achieve its objectives. Strategic management is also formulated by the
company’s top management, often in discussion with heads of various
departments. Both business policy and strategic management apply to every
department and employee of the firm. Strategic management includes many
activities like setting objectives, analysing the firm’s strengths, studying the
competition, evaluating strategies and ensuring that the strategies are followed
across the firm.

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There are four steps to strategic management.

1. Environmental Scanning – The company collects information about both

internal and external factors and analyses them to formulate strategies.
2. Strategy Formulation – After scanning the environment, the company
formulates the strategy for achieving the goals of the organisation. There
are corporate, business and functional strategies in every firm.
3. Strategy Implementation – The company must implement the strategy it
has formulated. This includes designing the firm’s structure, distributing
resourcing, developing decision-making processes and managing human
resources.
 4. Strategy Evaluation – In this last step of the strategic management
process, the top management assesses how the strategies have been
implemented and what results in the firm has achieved. This exercise
ensures that the implementation meets organisational objectives.

Levels Of Strategic Management

In companies with multiple products and business units, there are mostly
different levels of strategic management. When the business policy and strategic
management are formulated, these levels are defined.

Corporate Strategy

This is the strategy for the whole organisation. It addresses various questions
like what is the purpose of establishing the company, what products it wants to
sell and how to get into new businesses or expand the current one. The
corporate strategy is usually formulated by the top management, including the
CEO, the board of directors and the chiefs of functional areas.

SBU Strategy

This pertains to the strategies for a particular business unit in the organisation
or a specific mix of products. It will answer questions about the improvement of
business in that particular product or customer segment. The SBU strategy is
also in line with the corporate strategy. It will help the business unit compete in
the market and contribute to the overall success of the firm.

Functional Strategies

As the name suggests this pertains to different functional areas like finance,
marketing, production or human resources. It helps in ensuring that every area
of the company functions efficiently and contributes to the achievement of
company objectives. Functional strategies are formulated by the heads of those
functional areas.

Features Of Strategy Management

While on the subject of business policy and strategic management, it is essential

to understand the key features of strategic management.

Efficient Top Management – Strategic management necessitates the presence

of highly efficient professionals in senior management roles as they must make
critical decisions.

Sufficient Resource Availability – There must be sufficient availability of

resources like workforce and logistics if the company must implement strategic
management properly. The top management allocates and re-allocates
resources across departments during the implementation of strategic
management.

Dynamic Business Environment – Strategic management happens in a

dynamic company. It must be able to accept and adapt to financial, technological
or legal changes.

Future-Oriented – This type of management needs the company to find

solutions for complex and uncertain problems. It must be done by selecting the
best option, keeping in mind future predictions and projections.

Long-Term Benefits – Strategic management affects various functions in an

organisation and the long-term success of the company. Companies see great
success in the long term when implementing strategic management.

Benefits Of Strategic Management

Creates A Proactive Organisation

Adopting the business policy and strategic management system helps a

company become proactive. It allows the organisation to foresee future events
and become prepared for them. They can anticipate unfavourable events and
prepare to face them with very little financial loss. A proactive firm is always
faster to be back on track after any disaster.

Gives A Sense Of Direction

Companies must strive to achieve their business goals and strategic

management helps in providing the right direction towards that. It helps in
setting up realistic goals that align with the vision and mission of the
establishment.

Improves Operational Efficiency

Operational efficiency increases when companies adopt strategic

management. All discussions and decisions travel in the direction of achieving
objectives with the best use of available resources. Strategic management aligns
all functional areas of the company resulting in better efficiency.

Better Market Share And Profitability

Adopting a strategic management system helps companies get better insights

into market trends, consumer behaviour and competitor activities. Knowing this
enables the company to turn all sales and marketing efforts to ensure better
market share and increased profitability.

Makes Businesses More Durable

An organisation can run into various troubles in its journey. A company that is
performing very well presently can run into losses shortly. It has been proved
that companies that adopted the strategic management method are better
prepared to face difficult times and come out of them unscathed.

1. Strategic Management Process - Meaning, Steps

and Components
The strategic management process means defining the organization’s strategy. It
is also defined as the process by which managers make a choice of a set of
strategies for the organization that will enable it to achieve better performance.

Strategic management is a continuous process that appraises the business and

industries in which the organization is involved; appraises it’s competitors; and
fixes goals to meet all the present and future competitor’s and then reassesses
each strategy.

Strategic management process has following four steps:

1. Environmental Scanning- Environmental scanning refers to a process of

collecting, scrutinizing and providing information for strategic purposes.

It helps in analyzing the internal and external factors influencing an

organization.

After executing the environmental analysis process, management should

evaluate it on a continuous basis and strive to improve it.

2. Strategy Formulation- Strategy formulation is the process of deciding

best course of action for accomplishing organizational objectives and
hence achieving organizational purpose.

After conducting environment scanning, managers formulate corporate,

business and functional strategies.

3. Strategy Implementation- Strategy implementation implies making the

strategy work as intended or putting the organization’s chosen strategy
into action.

Strategy implementation includes designing the organization’s structure,

distributing resources, developing decision making process, and managing
human resources.

4. Strategy Evaluation- Strategy evaluation is the final step of strategy

management process.

The key strategy evaluation activities are: appraising internal and external
factors that are the root of present strategies, measuring performance, and
taking remedial/corrective actions.

Evaluation makes sure that the organizational strategy as well as it’s

implementation meets the organizational objectives.
These components are steps that are carried, in chronological order, when
creating a new strategic management plan.

Present businesses that have already created a strategic management plan will
revert to these steps as per the situation’s requirement, so as to make essential
changes.

Components of Strategic Management Process

Strategic management is an ongoing process. Therefore, it must be realized

that each component interacts with the other components and that this
interaction often happens in chorus.

1. Environmental Scanning - Internal & External Analysis of Environment

Environmental Scanning - Internal & External Analysis of Environment

Organizational environment consists of both external and internal factors.

Environment must be scanned so as to determine development and forecasts of
factors that will influence organizational success.

Environmental scanning refers to possession and utilization of information

about occasions, patterns, trends, and relationships within an
organization’s internal and external environment.

It helps the managers to decide the future path of the organization. Scanning
must identify the threats and opportunities existing in the environment.
During strategy formulation, an organization must take advantage of the
opportunities and minimize the threats. A threat for one organization may be
an opportunity for another.

Internal analysis of the environment is the first step of environment scanning.

Organizations should observe the internal organizational environment.

This includes employee interaction with other employees, employee interaction

with management, manager interaction with other managers, and management
interaction with shareholders, access to natural resources, brand awareness,
organizational structure, main staff, operational potential, etc. Also, discussions,
interviews, and surveys can be used to assess the internal environment.

Analysis of internal environment helps in identifying strengths and

weaknesses of an organization.

As business becomes more competitive, and there are rapid changes in the
external environment, information from external environment adds crucial
elements to the effectiveness of long-term plans.

As environment is dynamic, it becomes essential to identify competitors’ moves

and actions. Organizations have also to update the core competencies and
internal environment as per external environment.

Environmental factors are infinite, hence, organization should be agile and

vigile to accept and adjust to the environmental changes.

For instance - Monitoring might indicate that an original forecast of the prices of
the raw materials that are involved in the product are no more credible, which
could imply the requirement for more focused scanning, forecasting and
analysis to create a more trustworthy prediction about the input costs. In a
similar manner, there can be changes in factors such as competitor’s activities,
technology, market tastes and preferences.

While in external analysis, three correlated environment should be studied and

analyzed —

▪ immediate/industry environment
▪ national environment
▪ broader socio-economic environment/macro-environment

Examining the industry environment needs an appraisal of the competitive

structure of the organization’s industry, including the competitive position of a
particular organization and it’s main rivals. Also, an assessment of the nature,
stage, dynamics and history of the industry is essential. It also implies evaluating
the effect of globalization on competition within the industry.

Analyzing the national environment needs an appraisal of whether the

national framework helps in achieving competitive advantage in the globalized
environment.

Analysis of macro-environment includes exploring macro-economic, social,

government, legal, technological and international factors that may influence the
environment. The analysis of organization’s external environment reveals
opportunities and threats for an organization.

Strategic managers must not only recognize the present state of the
environment and their industry but also be able to predict its future positions.

Environmental Scanning - Internal &

External Analysis of Environment
Organizational environment consists of both external and internal factors. Environment
must be scanned so as to determine development and forecasts of factors that will
influence organizational success.

Environmental scanning refers to possession and utilization of information about

occasions, patterns, trends, and relationships within an organization’s internal and
external environment.

It helps the managers to decide the future path of the organization. Scanning must identify
the threats and opportunities existing in the environment.

During strategy formulation, an organization must take advantage of the opportunities and
minimize the threats. A threat for one organization may be an opportunity for another.

Internal analysis of the environment is the first step of environment scanning.

Organizations should observe the internal organizational environment.

This includes employee interaction with other employees, employee interaction with
management, manager interaction with other managers, and management interaction with
shareholders, access to natural resources, brand awareness, organizational structure, main
staff, operational potential, etc. Also, discussions, interviews, and surveys can be used to
assess the internal environment.

Analysis of internal environment helps in identifying strengths and weaknesses of an

organization.
As business becomes more competitive, and there are rapid changes in the external
environment, information from external environment adds crucial elements to the
effectiveness of long-term plans.

As environment is dynamic, it becomes essential to identify competitors’ moves and actions.

Organizations have also to update the core competencies and internal environment as per
external environment.

Environmental factors are infinite, hence, organization should be agile and vigile to
accept and adjust to the environmental changes.

For instance - Monitoring might indicate that an original forecast of the prices of the raw
materials that are involved in the product are no more credible, which could imply the
requirement for more focused scanning, forecasting and analysis to create a more
trustworthy prediction about the input costs. In a similar manner, there can be changes in
factors such as competitor’s activities, technology, market tastes and preferences.

While in external analysis, three correlated environment should be studied and analyzed
—

▪ immediate/industry environment
▪ national environment
▪ broader socio-economic environment/macro-environment

Examining the industry environment needs an appraisal of the competitive structure of

the organization’s industry, including the competitive position of a particular organization
and it’s main rivals. Also, an assessment of the nature, stage, dynamics and history of the
industry is essential. It also implies evaluating the effect of globalization on competition
within the industry.

Analyzing the national environment needs an appraisal of whether the national

framework helps in achieving competitive advantage in the globalized environment.

Analysis of macro-environment includes exploring macro-economic, social, government,

legal, technological and international factors that may influence the environment. The
analysis of organization’s external environment reveals opportunities and threats for an
organization.

Strategic managers must not only recognize the present state of the environment and their
industry but also be able to predict its future positions.

Steps in Strategy Formulation

Process
Strategy formulation refers to the process of choosing the most appropriate course of
action for the realization of organizational goals and objectives and thereby achieving the
organizational vision. The process of strategy formulation basically involves six main
steps. Though these steps do not follow a rigid chronological order, however they are very
rational and can be easily followed in this order.

1. Setting Organizations’ objectives - The key component of any strategy statement is

to set the long-term objectives of the organization. It is known that strategy is
generally a medium for realization of organizational objectives.

Objectives stress the state of being there whereas Strategy stresses upon the process
of reaching there.

Strategy includes both the fixation of objectives as well the medium to be used to
realize those objectives. Thus, strategy is a wider term which believes in the manner
of deployment of resources so as to achieve the objectives.

While fixing the organizational objectives, it is essential that the factors which
influence the selection of objectives must be analyzed before the selection of
objectives. Once the objectives and the factors influencing strategic decisions have
been determined, it is easy to take strategic decisions.

2. Evaluating the Organizational Environment - The next step is to evaluate the

general economic and industrial environment in which the organization operates.
This includes a review of the organizations competitive position.

It is essential to conduct a qualitative and quantitative review of an organizations

existing product line. The purpose of such a review is to make sure that the factors
important for competitive success in the market can be discovered so that the
management can identify their own strengths and weaknesses as well as their
competitors’ strengths and weaknesses.

After identifying its strengths and weaknesses, an organization must keep a track of
competitors’ moves and actions so as to discover probable opportunities of threats
to its market or supply sources.

3. Setting Quantitative Targets - In this step, an organization must practically fix the
quantitative target values for some of the organizational objectives. The idea behind
this is to compare with long term customers, so as to evaluate the contribution that
might be made by various product zones or operating departments.
4. Aiming in context with the divisional plans - In this step, the contributions made
by each department or division or product category within the organization is
identified and accordingly strategic planning is done for each sub-unit. This requires
a careful analysis of macroeconomic trends.
5. Performance Analysis - Performance analysis includes discovering and analyzing
the gap between the planned or desired performance.

A critical evaluation of the organizations past performance, present condition and

the desired future conditions must be done by the organization.
 This critical evaluation identifies the degree of gap that persists between the actual
reality and the long-term aspirations of the organization. An attempt is made by the
organization to estimate its probable future condition if the current trends persist.

6. Choice of Strategy - This is the ultimate step in Strategy Formulation. The best
course of action is actually chosen after considering organizational goals,
organizational strengths, potential and limitations as well as the external
opportunities.

Strategy Implementation and its

Steps
Strategy implementation is the translation of chosen strategy into organizational
action so as to achieve strategic goals and objectives. Strategy implementation is also
defined as the manner in which an organization should develop, utilize, and amalgamate
organizational structure, control systems, and culture to follow strategies that lead to
competitive advantage and a better performance.

Organizational structure allocates special value developing tasks and roles to the employees
and states how these tasks and roles can be correlated so as maximize efficiency, quality,
and customer satisfaction-the pillars of competitive advantage. But, organizational structure
is not sufficient in itself to motivate the employees.

An organizational control system is also required. This control system equips managers with
motivational incentives for employees as well as feedback on employees and organizational
performance. Organizational culture refers to the specialized collection of values, attitudes,
norms and beliefs shared by organizational members and groups.

Following are the main steps in implementing a strategy:

▪ Developing an organization having potential of carrying out strategy successfully.

▪ Disbursement of abundant resources to strategy-essential activities.
▪ Creating strategy-encouraging policies.
▪ Employing best policies and programs for constant improvement.
▪ Linking reward structure to accomplishment of results.
▪ Making use of strategic leadership.

Excellently formulated strategies will fail if they are not properly implemented. Also, it is
essential to note that strategy implementation is not possible unless there is stability
between strategy and each organizational dimension such as organizational structure,
reward structure, resource-allocation process, etc.

Strategy implementation poses a threat to many managers and employees in an

organization. New power relationships are predicted and achieved. New groups (formal as
well as informal) are formed whose values, attitudes, beliefs and concerns may not be
known. With the change in power and status roles, the managers and employees may
employ confrontation behaviour.

Strategy Formulation vs Strategy

Implementation
Following are the main differences between Strategy Formulation and Strategy
Implementation-

Strategy Formulation Strategy Implementation

Strategy Formulation includes planning and Strategy Implementation involves all those
decision-making involved in developing means related to executing the strategic
organization’s strategic goals and plans. plans.

In short, Strategy Formulation is placing the In short, Strategy Implementation

Forces before the action. is managing forces during the action.

Strategy Formulation is an Entrepreneurial Strategic Implementation is mainly

Activity based on strategic decision-making. an Administrative Task based on strategic
and operational decisions.

Strategy Formulation emphasizes Strategy Implementation emphasizes

on effectiveness. on efficiency.

Strategy Formulation is a rational process. Strategy Implementation is basically

an operational process.

Strategy Formulation requires co-ordination Strategy Implementation requires co-

among few individuals. ordination among many individuals.

Strategy Formulation requires a great deal Strategy Implementation requires

of initiative and logical skills. specific motivational and leadership
traits.

Strategic Formulation precedes Strategy STrategy Implementation follows Strategy

Implementation. Formulation.

Strategy Evaluation Process and its

Significance
Strategy Evaluation is as significant as strategy formulation because it throws light on the
efficiency and effectiveness of the comprehensive plans in achieving the desired results.

The managers can also assess the appropriateness of the current strategy in todays
dynamic world with socio-economic, political and technological innovations. Strategic
Evaluation is the final phase of strategic management.

The significance of strategy evaluation lies in its capacity to co-ordinate the task
performed by managers, groups, departments etc, through control of performance.

Strategic Evaluation is significant because of various factors such as - developing inputs for
new strategic planning, the urge for feedback, appraisal and reward, development of the
strategic management process, judging the validity of strategic choice etc.

The process of Strategy Evaluation consists of following steps-

1. Fixing benchmark of performance - While fixing the benchmark, strategists

encounter questions such as - what benchmarks to set, how to set them and how to
express them.

In order to determine the benchmark performance to be set, it is essential to

discover the special requirements for performing the main task.

The performance indicator that best identify and express the special requirements
might then be determined to be used for evaluation.

The organization can use both quantitative and qualitative criteria for
comprehensive assessment of performance. Quantitative criteria includes
determination of net profit, ROI, earning per share, cost of production, rate of
employee turnover etc.

Among the Qualitative factors are subjective evaluation of factors such as - skills and
competencies, risk taking potential, flexibility etc.

2. Measurement of performance - The standard performance is a bench mark with

which the actual performance is to be compared. The reporting and communication
system help in measuring the performance.

If appropriate means are available for measuring the performance and if the
standards are set in the right manner, strategy evaluation becomes easier. But
various factors such as managers contribution are difficult to measure.

Similarly divisional performance is sometimes difficult to measure as compared to

individual performance. Thus, variable objectives must be created against which
measurement of performance can be done.

The measurement must be done at right time else evaluation will not meet its
purpose. For measuring the performance, financial statements like - balance sheet,
profit and loss account must be prepared on an annual basis.
 3. Analyzing Variance - While measuring the actual performance and comparing it
with standard performance there may be variances which must be analyzed.

The strategists must mention the degree of tolerance limits between which the
variance between actual and standard performance may be accepted.

The positive deviation indicates a better performance but it is quite unusual

exceeding the target always. The negative deviation is an issue of concern because it
indicates a shortfall in performance.

Thus in this case the strategists must discover the causes of deviation and must take
corrective action to overcome it.

4. Taking Corrective Action - Once the deviation in performance is identified, it is

essential to plan for a corrective action.

If the performance is consistently less than the desired performance, the strategists
must carry a detailed analysis of the factors responsible for such performance.

If the strategists discover that the organizational potential does not match with the
performance requirements, then the standards must be lowered.

Another rare and drastic corrective action is reformulating the strategy which
requires going back to the process of strategic management, reframing of plans
according to new resource allocation trend and consequent means going to the
beginning point of strategic management process.

Strategic Decisions - Definition and

Characteristics
Strategic decisions are the decisions that are concerned with whole environment in which
the firm operates, the entire resources and the people who form the company and the
interface between the two.

Characteristics/Features of Strategic Decisions

a. Strategic decisions have major resource propositions for an organization. These

decisions may be concerned with possessing new resources, organizing others or
reallocating others.
b. Strategic decisions deal with harmonizing organizational resource capabilities with
the threats and opportunities.
c. Strategic decisions deal with the range of organizational activities. It is all about what
they want the organization to be like and to be about.
d. Strategic decisions involve a change of major kind since an organization operates in
ever-changing environment.
e. Strategic decisions are complex in nature.
 f. Strategic decisions are at the top most level, are uncertain as they deal with the
future, and involve a lot of risk.
g. Strategic decisions are different from administrative and operational decisions.

Administrative decisions are routine decisions which help or rather facilitate

strategic decisions or operational decisions.

Operational decisions are technical decisions which help execution of strategic

decisions.

To reduce cost is a strategic decision which is achieved through operational decision

of reducing the number of employees and how we carry out these reductions will be
administrative decision.

The differences between Strategic, Administrative and Operational decisions can be

summarized as follows-

Strategic Decisions Administrative Operational Decisions

Decisions

Strategic decisions are long- Administrative decisions Operational decisions are

term decisions. are taken daily. not frequently taken.

These are considered where These are short-term These are medium-period
The future planning is based Decisions. based decisions.
concerned.

Strategic decisions are taken These are taken according These are taken in
in Accordance with to strategic and accordance with strategic
organizational mission and operational Decisions. and administrative
vision. decision.

These are related to overall These are related to These are related to
Counter planning of all working of employees in production.
Organization. an Organization.

These deal with These are in welfare of These are related to

organizational Growth. employees working in an production and factory
organization. growth.
Benefits of Strategic Management
There are many benefits of strategic management and they include identification,
prioritization, and exploration of opportunities. For instance, newer products, newer
markets, and newer forays into business lines are only possible if firms indulge in strategic
planning.

Next, strategic management allows firms to take an objective view of the activities being
done by it and do a cost benefit analysis as to whether the firm is profitable.

Just to differentiate, by this, we do not mean the financial benefits alone (which would be
discussed below) but also the assessment of profitability that has to do with evaluating
whether the business is strategically aligned to its goals and priorities.

The key point to be noted here is that strategic management allows a firm to orient itself to
its market and consumers and ensure that it is actualizing the right strategy.

Financial Benefits
It has been shown in many studies that firms that engage in strategic management are
more profitable and successful than those that do not have the benefit of strategic planning
and strategic management.

When firms engage in forward looking planning and careful evaluation of their priorities,
they have control over the future, which is necessary in the fast changing business
landscape of the 21st century.

It has been estimated that more than 100,000 businesses fail in the US every year and most
of these failures are to do with a lack of strategic focus and strategic direction.

Further, high performing firms tend to make more informed decisions because they have
considered both the short term and long-term consequences and hence, have oriented their
strategies accordingly.

In contrast, firms that do not engage themselves in meaningful strategic planning are often
bogged down by internal problems and lack of focus that leads to failure.

Non-Financial Benefits
The section above discussed some of the tangible benefits of strategic management. Apart
from these benefits, firms that engage in strategic management are more aware of the
external threats, an improved understanding of competitor strengths and weaknesses and
increased employee productivity. They also have lesser resistance to change and a clear
understanding of the link between performance and rewards.

The key aspect of strategic management is that the problem solving and problem
preventing capabilities of the firms are enhanced through strategic management.
Strategic management is essential as it helps firms to rationalize change and actualize
change and communicate the need to change better to its employees. Finally, strategic
management helps in bringing order and discipline to the activities of the firm in its both
internal processes and external activities.

Closing Thoughts

In recent years, virtually all firms have realized the importance of strategic management.
However, the key difference between those who succeed and those who fail is that the way
in which strategic management is done and strategic planning is carried out makes
the difference between success and failure.

Of course, there are still firms that do not engage in strategic planning or where the
planners do not receive the support from management. These firms ought to realize the
benefits of strategic management and ensure their longer-term viability and success in the
marketplace.

Strategic Management - Meaning

and Important Concepts
Strategic Management - An Introduction

Strategic Management is all about identification and description of the strategies that
managers can carry so as to achieve better performance and a competitive advantage for
their organization.

An organization is said to have competitive advantage if its profitability is higher than the
average profitability for all companies in its industry.

Strategic management can also be defined as a bundle of decisions and acts which a
manager undertakes and which decides the result of the firm’s performance.

The manager must have a thorough knowledge and analysis of the general and competitive
organizational environment so as to take right decisions.

The managers should conduct a SWOT Analysis (Strengths, Weaknesses, Opportunities,

and Threats) in order to - make the best possible utilization of strengths, minimize the
organizational weaknesses, make use of arising opportunities from the business
environment and shouldn’t ignore the threats.

Strategic management is nothing but planning for both predictable as well as

unfeasible contingencies. It is applicable to both small as well as large organizations as
even the smallest organization face competition and, by formulating and implementing
appropriate strategies, they can attain sustainable competitive advantage.

It is a way in which strategists set the objectives and proceed about attaining them.
It deals with making and implementing decisions about future direction of an organization.
It helps us to identify the direction in which an organization is moving.

Strategic management is a continuous process that:

1. evaluates and controls the business and the industries in which an organization is
involved;
2. evaluates its competitors and sets goals and strategies to meet all existing and
potential competitors; and then
3. re-evaluates strategies on a regular basis to determine how it has been implemented
and whether it was successful or does it needs replacement

Strategic Management gives a broader perspective to the employees of an organization

and they can better understand how their job fits into the entire organizational plan and
how it is co-related to other organizational members.

It is nothing but the art of managing employees in a manner which maximizes the ability of
achieving business objectives.

The employees become more trustworthy, more committed and more satisfied as they can
co-relate themselves very well with each organizational task.

They can understand the reaction of environmental changes on the organization and the
probable response of the organization with the help of strategic management.

Thus the employees can judge the impact of such changes on their own job and can
effectively face the changes. The managers and employees must do appropriate things in
appropriate manner. They need to be both effective as well as efficient.

One of the major role of strategic management is to incorporate various functional areas of
the organization completely, as well as, to ensure these functional areas harmonize and get
together well.

Another role of strategic management is to keep a continuous eye on the goals and
objectives of the organization.

Strategy - Definition and Features

The word “strategy” is derived from the Greek word “strategos”; stratus (meaning army) and
“ago” (meaning leading/moving).

Strategy is an action that managers take to attain one or more of the organization’s goals.

Strategy can also be defined as “A general direction set for the company and its various
components to achieve a desired state in the future. Strategy results from the detailed strategic
planning process”.

A strategy is all about integrating organizational activities and utilizing and allocating the
scarce resources within the organizational environment so as to meet the present
objectives.
While planning a strategy it is essential to consider that decisions are not taken in a vaccum
and that any act taken by a firm is likely to be met by a reaction from those affected,
competitors, customers, employees or suppliers.

Strategy can also be defined as knowledge of the goals, the uncertainty of events and the
need to take into consideration the likely or actual behavior of others.

Strategy is the blueprint of decisions in an organization that shows its objectives and
goals, reduces the key policies, and plans for achieving these goals, and defines the business
the company is to carry on, the type of economic and human organization it wants to be,
and the contribution it plans to make to its shareholders, customers and society at large.

Features of Strategy

1. Strategy is Significant because it is not possible to foresee the future. Without a

perfect foresight, the firms must be ready to deal with the uncertain events which
constitute the business environment.
2. Strategy deals with long term developments rather than routine operations, i.e. it
deals with probability of innovations or new products, new methods of productions,
or new markets to be developed in future.
3. Strategy is created to take into account the probable behavior of customers and
competitors. Strategies dealing with employees will predict the employee behavior.

Strategy is a well defined roadmap of an organization. It defines the overall mission,

vision and direction of an organization. The objective of a strategy is to maximize an
organization’s strengths and to minimize the strengths of the competitors.

Strategy, in short, bridges the gap between “where we are” and “where we want to be”.

Components of a Strategy
Statement
The strategy statement of a firm sets the firm’s long-term strategic direction and broad
policy directions. It gives the firm a clear sense of direction and a blueprint for the firm’s
activities for the upcoming years. The main constituents of a strategic statement are as
follows:

1. Strategic Intent

An organization’s strategic intent is the purpose that it exists and why it will
continue to exist, providing it maintains a competitive advantage. Strategic
intent gives a picture about what an organization must get into immediately in order
to achieve the company’s vision. It motivates the people. It clarifies the vision of the
vision of the company.

Strategic intent helps management to emphasize and concentrate on the priorities.

Strategic intent is, nothing but, the influencing of an organization’s resource
 potential and core competencies to achieve what at first may seem to be
unachievable goals in the competitive environment.

A well expressed strategic intent should guide/steer the development of strategic

intent or the setting of goals and objectives that require that all of organization’s
competencies be controlled to maximum value.

Strategic intent includes directing organization’s attention on the need of winning;

inspiring people by telling them that the targets are valuable; encouraging individual
and team participation as well as contribution; and utilizing intent to direct allocation
of resources.

Strategic intent differs from strategic fit in a way that while strategic fit deals with
harmonizing available resources and potentials to the external environment,
strategic intent emphasizes on building new resources and potentials so as to create
and exploit future opportunities.

2. Mission Statement

Mission statement is the statement of the role by which an organization intends to

serve it’s stakeholders. It describes why an organization is operating and thus
provides a framework within which strategies are formulated. It describes what the
organization does (i.e., present capabilities), who all it serves (i.e., stakeholders) and
what makes an organization unique (i.e., reason for existence).

A mission statement differentiates an organization from others by explaining its

broad scope of activities, its products, and technologies it uses to achieve its goals
and objectives. It talks about an organization’s present (i.e., “about where we are”).

For instance, Microsoft’s mission is to help people and businesses throughout the
world to realize their full potential.

Wal-Mart’s mission is “To give ordinary folk the chance to buy the same thing as
rich people.”

Mission statements always exist at top level of an organization, but may also be
made for various organizational levels. Chief executive plays a significant role in
formulation of mission statement. Once the mission statement is formulated, it
serves the organization in long run, but it may become ambiguous with
organizational growth and innovations.

In today’s dynamic and competitive environment, mission may need to be redefined.

However, care must be taken that the redefined mission statement should have
original fundamentals/components.

Mission statement has three main components- a statement of mission or vision

of the company, a statement of the core values that shape the acts and behaviour of
the employees, and a statement of the goals and objectives.

Features of a Mission
 a. Mission must be feasible and attainable. It should be possible to achieve it.
b. Mission should be clear enough so that any action can be taken.
c. It should be inspiring for the management, staff and society at large.
d. It should be precise enough, i.e., it should be neither too broad nor too
narrow.
e. It should be unique and distinctive to leave an impact in everyone’s mind.
f. It should be analytical,i.e., it should analyze the key components of the
strategy.
g. It should be credible, i.e., all stakeholders should be able to believe it.
3. Vision

A vision statement identifies where the organization wants or intends to be in future

or where it should be to best meet the needs of the stakeholders. It describes
dreams and aspirations for future.

For instance, Microsoft’s vision is “to empower people through great software, any
time, any place, or any device.” Wal-Mart’s vision is to become worldwide leader in
retailing.

A vision is the potential to view things ahead of themselves. It answers the question
“where we want to be”. It gives us a reminder about what we attempt to develop. A
vision statement is for the organization and it’s members, unlike the mission
statement which is for the customers/clients. It contributes in effective decision
making as well as effective business planning.

It incorporates a shared understanding about the nature and aim of the organization
and utilizes this understanding to direct and guide the organization towards a better
purpose. It describes that on achieving the mission, how the organizational future
would appear to be.

An effective vision statement must have following features-

a. It must be unambiguous.
b. It must be clear.
c. It must harmonize with organization’s culture and values.
d. The dreams and aspirations must be rational/realistic.
e. Vision statements should be shorter so that they are easier to memorize.

In order to realize the vision, it must be deeply instilled in the organization, being
owned and shared by everyone involved in the organization.

4. Goals and Objectives

A goal is a desired future state or objective that an organization tries to achieve.

Goals specify in particular what must be done if an organization is to attain mission
or vision. Goals make mission more prominent and concrete. They co-ordinate and
 integrate various functional and departmental areas in an organization. Well made
goals have following features-

a. These are precise and measurable.

b. These look after critical and significant issues.
c. These are realistic and challenging.
d. These must be achieved within a specific time frame.
e. These include both financial as well as non-financial components.

Objectives are defined as goals that organization wants to achieve over a period of
time. These are the foundation of planning. Policies are developed in an organization
so as to achieve these objectives. Formulation of objectives is the task of top level
management. Effective objectives have following features-

f. These are not single for an organization, but multiple.

g. Objectives should be both short-term as well as long-term.
h. Objectives must respond and react to changes in environment, i.e., they must
be flexible.
i. These must be feasible, realistic and operational.

Importance of Vision and Mission

Statements
One of the first things that any observer of management thought and practice asks is
whether a particular organization has a vision and mission statement. In addition, one of the
first things that one learns in a business school is the importance of vision and mission
statements.

This article is intended to elucidate on the reasons why vision and mission
statements are important and the benefits that such statements provide to the
organizations.

It has been found in studies that organizations that have lucid, coherent, and meaningful
vision and mission statements return more than double the numbers in shareholder
benefits when compared to the organizations that do not have vision and mission
statements. Indeed, the importance of vision and mission statements is such that it is the
first thing that is discussed in management textbooks on strategy.

Some of the benefits of having a vision and mission statement are discussed below:
 ▪ Above everything else, vision and mission statements provide unanimity of purpose
to organizations and imbue the employees with a sense of belonging and identity.
Indeed, vision and mission statements are embodiments of organizational identity
and carry the organizations creed and motto. For this purpose, they are also called
as statements of creed.
▪ Vision and mission statements spell out the context in which the organization
operates and provides the employees with a tone that is to be followed in the
organizational climate. Since they define the reason for existence of the
organization, they are indicators of the direction in which the organization must
move to actualize the goals in the vision and mission statements.
▪ The vision and mission statements serve as focal points for individuals to identify
themselves with the organizational processes and to give them a sense of direction
while at the same time deterring those who do not wish to follow them from
participating in the organization’s activities.
▪ The vision and mission statements help to translate the objectives of the
organization into work structures and to assign tasks to the elements in the
organization that are responsible for actualizing them in practice.
▪ To specify the core structure on which the organizational edifice stands and to help
in the translation of objectives into actionable cost, performance, and time related
measures.
▪ Finally, vision and mission statements provide a philosophy of existence to the
employees, which is very crucial because as humans, we need meaning from the
work to do and the vision and mission statements provide the necessary meaning
for working in a particular organization.

As can be seen from the above, articulate, coherent, and meaningful vision and mission
statements go a long way in setting the base performance and actionable parameters and
embody the spirit of the organization.

In other words, vision and mission statements are as important as the various identities that
individuals have in their everyday lives.

It is for this reason that organizations spend a lot of time in defining their vision and mission
statements and ensure that they come up with the statements that provide meaning
instead of being mere sentences that are devoid of any meaning.

ssion. Vision. Values.

You’ve probably heard that phrase (or something similar) a thousand

times. But they’re actually three distinct concepts.

The lines especially blur between mission and vision. It’s essential to
know their distinction from one another when it comes to the drive
and direction of your company. So what’s the real difference between
mission and vision statements?
In this in-depth guide, we’ll compare and contrast mission and vision
statements. We’ll break down each one’s definition and then discuss
the best 25 brand examples that demonstrate their differences.
Through that, you’ll be able to better understand and define your
company’s essence and direction with confidence and clarity.

The Difference Between a Mission and Vision

Statement
This is the easiest way to break it down:

• The mission statement focuses on today and what the

organization does to achieve it.
• The vision statement focuses on tomorrow and what the
organization wants to become.
While companies commonly use mission and vision statements
interchangeably, it’s important to have both. Because having purpose
and meaning is critical for any business, one doesn’t work without the
other.

What is a Mission Statement?

Your mission statement drives the company. It is the core of the
business. From it stems your company’s objectives and what it takes
to reach those objectives. Ultimately, it shapes your company’s entire
culture.

Mission statement questions look like:

• What do we do?
• Whom do we serve?
• How do we serve them?
This trickle-down effect of a mission statement confirms its value at
any company. A solid mission sets up your content operations for
success by starting your team all at the same place and motivating
them to work together to reach the same end goal.

On the other hand, a weak mission — or no mission at all — can have

the opposite effect. Picture this: silos, miscommunications, flailing,
feeling unmotivated. And, imagine what that does to a company. Scary,
right?

For content marketers

Your content strategy supports your company’s mission statement

— think of it as the HOW of what you do. It helps keep you on track.
Through it, you stay true to your brand and your goals. Every piece
of content you create should be rooted in your mission statement,
from the tone of voice to the call to action.
What is a Vision Statement?
Your vision statement gives the company direction. It is the future
of the business, which then provides the purpose.

The vision statement is aspirational- it’s about what you want to

become.

Vision statement questions look like:

• What are our hopes and dreams?

• What problem are we solving for the greater good?
• Who and what are we inspiring to change?
The vision statement promotes growth, both internally and externally.
A strong vision helps teams focus on what matters the most for their
company. It also invites innovation. A purpose-driven company
envisions success as a whole because they know what success means
for their company.

On the flip side, a lack of vision is a road to nowhere for a business.

Imagine this: stagnation, outdated processes, moving without
purpose, feeling uninspired. Can a company even survive without a
clear vision? You know the answer to that one.
For content marketers

The content vision supports the company’s vision statement — it’s the
WHY of what you do. This helps you stay forward-thinking, true to
your beliefs, and true to your purpose. Every piece of content you
dream up should fly high with your vision statement, from
the inception of an ebook to the lofty blog traffic milestone.

Brands That Get It: 25 Mission and Vision

Statement Examples
So, what do great mission and vision statements actually look like?
Here are 25 companies that get them right, with the customer
loyalty to prove it.

Tesla

Mission: To accelerate the world’s transition to sustainable energy.

Vision: To create the most compelling car company of the 21st

century by driving the world’s transition to electric vehicles.

Why it works: What better word than “accelerate” in a mission to

serve as the driving force behind what Tesla(Open Link in new
window) does. While boldly stating “best in the century” reflects
loftier dreams in the vision.
Amazon

Mission: We strive to offer our customers the lowest possible prices,

the best available selection, and the utmost convenience.

Vision: To be Earth’s most customer-centric company, where

customers can find and discover anything they might want to buy
online.

Why it works: Amazon’s(Open Link in new window) mission is

cut-and-dry about what it offers to customers. The vision takes the
offerings further, saying their company will offer “anything”
customers want.

Patagonia

Mission: We’re in business to save our home planet.

Vision: A love of wild and beautiful places demands participation in
the fight to save them and to help reverse the steep decline in the
overall environmental health of our planet.

Why it works: Patagonia’s(Open Link in new window) mission and

vision statements show a deep commitment to improving lives and
saving the planet through its products.

TED

Mission: Spread ideas.

Vision: We believe passionately in the power of ideas to change

attitudes, lives, and, ultimately, the world.

Why it works: The TED(Open Link in new window) mission to

“spread ideas” is a simple demonstration of how they serve. The vision
is all about impact, and how spreading ideas invokes change in the
world.
LinkedIn

Mission: To connect the world’s professionals to make them more

productive and successful.

Vision: To create economic opportunity for every member of the

global workforce.

Why it works: LinkedIn(Open Link in new window) succinctly

captures what they do (connect) and who they serve (the world’s
professionals) in their mission. While the vision encompasses every
working person in the world.

Google

Mission: To organize the world’s information and make it universally

accessible and useful.
Vision: To provide access to the world’s information in one click.

Why it works: Google(Open Link in new window) may seem

complex, but its mission clarifies that organization and accessibility
are what they offer. Their vision statement is about improving
accessibility in the future “in one click.”

Uber

Mission: We reimagine the way the world moves for the better.

Vision: Smarter transportation with fewer cars and greater access.

Transportation that’s safer, cheaper, and more reliable; transportation
that creates more job opportunities and higher incomes for drivers.

Why it works: Uber(Open Link in new window) “transports,” so it

is the perfect actionable verb for their mission. The vision dives
deeper into how their transportation services exist for the greater
good of everyone.

AirBnB
Mission: To create a world where anyone can belong anywhere, and
we are focused on creating an end-to-end travel platform that will
handle every part of your trip.

Vision: Belong everywhere.

Why it works: The Airbnb(Open Link in new window) mission

says, “We help you feel at home,” while encapsulating the company’s
goals for the future. They explore a deeper sense of belonging in the
vision, tapping into the universal human desire their company aims
for.

Intel

Mission: Delight our customers, employees, and shareholders by

relentlessly delivering the platform and technology advancements
that become essential to the way we work and live.

Vision: If it is smart and connected, it is best with Intel.

Why it works: Intel(Open Link in new window) promises to deliver

the most technologically advanced products in its mission. Their
vision uses more boastful language, illustrating great confidence in the
future of their solutions.
Ferrari

Mission: We build cars, symbols of Italian excellence the world over,

and we do so to win on both road and track. Unique creations that fuel
the Prancing Horse legend and generate a “World of Dreams and
Emotions.”

Vision: Ferrari, Italian Excellence that makes the world dream.

Why it works: “We build to win” in Ferrari’s(Open Link in new

window) mission focuses on the strength and quality of their product.
In this ambitious vision, their cars will reach the pinnacle of “Italian
Excellence.”

GoDaddy

Mission: Our mission is to empower entrepreneurs everywhere,

making opportunities more inclusive for all.

Vision: Our vision is to radically shift the global economy toward

independent entrepreneurial ventures.
Why it works: GoDaddy(Open Link in new window) positions itself
as the entrepreneur’s champion, making opportunity and success
attainable for all.

Caterpillar

Mission: To provide the best value to customers, grow a profitable

business, develop and reward people, and encourage social
responsibility.

Vision: Be the global leader in customer value.

Why it works: Caterpillar(Open Link in new window) explains

both their “how” and their “why” in their mission statement: By
providing affordable and high-quality products to customers, they will
continue to grow their business, recognize and reward employees, and
make a positive impact on the environment. Their vision reaffirms
their commitment to providing value.

Toyota USA
Mission: To attract and attain customers with high-valued products
and services and the most satisfying ownership experience in
America.

Vision: To be the most successful and respected car company in

America.

Why it works: Toyota’s(Open Link in new window) mission and

vision statements demonstrate what they are known for: products and
services. Even in a highly competitive industry, their vision states that
they will become the best car company in the country.

Samsung

Mission: We will devote our human resources and technology to

creating superior products and services, thereby contributing to a
better global society.

Vision: To inspire the world with our innovative technologies,

products, and designs that enrich people’s lives and contribute to
social prosperity by creating a new future.

Why it works: Samsung(Open Link in new window) wants to

improve people’s lives by creating exceptional and innovative
products, which they make clear in both their mission and vision
statements.
Wikimedia

Mission: To empower and engage people around the world to collect

and develop educational content under a free license or in the public
domain, and to disseminate it effectively and globally.

Vision: Imagine a world in which every single human being can freely
share in the sum of all knowledge. That’s our commitment.

Why it works: Wikimedia’s(Open Link in new window) mission

motivates its team to move toward a common goal of empowerment
and engagement. Their vision paints a future world where their
company’s commitment makes a lasting impact.

eBay

Mission: To be the world’s favorite destination for discovering great

value and unique selection.

Vision: Our vision for commerce is one that is enabled by people,

powered by technology, and open to everyone.
Why it works: When you break eBay’s(Open Link in new
window) mission and vision statements down, you see that eBay’s
mission uses “destination” to show their virtual company as a real
place people come to. An ongoing focus on people and technology gets
into the “why” of their vision.

Ikea

Mission: Offer a wide range of well-designed, functional home

furnishing products at prices so low that as many people as possible
will be able to afford them.

Vision: To create a better everyday life for many people.

Why it Works: The mission here focuses on the functionality

of IKEA’s(Open Link in new window) products and the affordability
of their customers. In the vision, the IKEA team has a true sense of
purpose in “creating a better everyday life.”

Cisco
Mission: Shape the future of the internet by creating unprecedented
value and opportunity for our customers, employees, investors, and
ecosystem partners.

Vision: Changing the way we work, live, play, and learn.

Why it works: Cisco(Open Link in new window) decided to blend

their mission and vision statements. Language like “shape the future”
is more vision-oriented, but the mission talks about the people they
serve.

Sony

Mission: A company that inspires and fulfills your curiosity.

Vision: Using our unlimited passion for technology, content, and

services to deliver groundbreaking new excitement and
entertainment, as only Sony can.

Why it works: Sony(Open Link in new window) gives a customer-

focused touch to its mission by using “your.” The “unlimited passion”
and “groundbreaking entertainment” messaging in their vision
demonstrate innovation.
Southwest Airlines

Mission: The mission of Southwest Airlines is a dedication to the

highest quality of customer service delivered with a sense of warmth,
friendliness, individual pride, and company spirit.

Vision: To be the world’s most loved, most efficient, and most

profitable airline.

Why it works: Southwest Airlines(Open Link in new window) tells

us right up front that quality customer service is their mission. Their
vision is highly aspirational across the board in saying they want to be
“the most” of everything.

ADP

Mission: Our mission is to provide insightful solutions that drive

value and success for our clients by allowing them to focus on their
business.

Vision: Be the world’s authority on helping organizations focus on

what matters.
Why it works: ADP(Open Link in new window) puts its clients at
the forefront of its mission and vision statements. After all, their
clients’ success is what makes them successful.

Kaiser Permanente

Mission: Kaiser Permanente exists to provide high-quality, affordable

healthcare services and to improve the health of our members and the
communities we serve.

Vision: We are trusted partners in total health, collaborating with

people to help them thrive and creating communities that are among
the healthiest in the nation.

Why it works: Saying “exist” sounds more like a vision statement, but
the rest of the mission says what Kaiser Permanente(Open Link in
new window) does. In the vision, “thrive” and “healthiest” are big
words that show their impact.

Coinbase
Mission: The mission of Coinbase is to create an open financial system
for the world.

Vision: Digital currency will bring about more innovation, efficiency,

and equality of opportunity in the world by creating an open financial
system.

Why it works: Coinbase(Open Link in new window) didn’t

sugarcoat what they do in their mission statement, did they? And, in
the vision, their message speaks well to the change their company will
bring one day.

Meta

Mission: To give people the power to build community and bring the
world closer together.

Vision: People use Facebook to stay connected with friends and

family, to discover what’s going on in the world, and to share and
express what matters to them.

Why it works: Facebook’s(Open Link in new window) mission is

focused on the community their platform promises. Their vision talks
about why community matters, interweaving how they will “bring the
world closer together” from the mission.
Whole Foods

Mission: Our purpose is to nourish people and the planet. We’re a

purpose-driven company that aims to set the standards of excellence
for food retailers. Quality is a state of mind at Whole Foods Market.

Vision: Whole Foods, Whole People, Whole Planet.

Why it works: This mission uses repetition throughout to reinforce

the quality that Whole Foods(Open Link in new window) is known
for. Making everything “whole” in their vision binds their company to
a set of beliefs that they complete people’s lives.

More Mission Statements From Top Brands:

• Adidas (Open Link in new window)— To be the best sports
company in the world.
• CalArts (Open Link in new window)— CalArts is a
multidisciplinary community of artists. Our ongoing educational
endeavor is grounded in openness, experimentation, critical
engagement, and creative freedom. Through artistic practice, we
transform ourselves, each other, and the world.
• Coca-Cola(Open Link in new window) — To refresh the world
in mind, body, and spirit; to inspire moments of optimism and
happiness through our brands and actions; to create value and
make a difference.
• Dunkin’ Donuts (Open Link in new window)— Everything we
do is about you. From chefs who create exciting new flavors to
crew members who know exactly how you want your drink—we
prioritize what you need to get you on your way. We strive to
 keep you at your best, and we remain loyal to you, your tastes,
and your time. That’s what America runs on.
• Goodwill (Open Link in new window)— Goodwill works to
enhance people’s dignity and quality of life by strengthening
their communities, eliminating their barriers to opportunity, and
helping them reach their full potential through learning and the
power of work.
• L’Oréal(Open Link in new window) — L’Oréal has set itself the
mission of offering all women and men worldwide the best of
cosmetics innovation in terms of quality, efficacy, and safety. By
meeting the infinite diversity of beauty needs and desires all
over the world.
• McDonald’s(Open Link in new window) — Our mission is to
make delicious feel-good moments easy for everyone.
• The Met (Open Link in new window)— The mission of The
Metropolitan Museum of Art is to collect, preserve, study,
exhibit, and stimulate appreciation for and advance knowledge
of works of art that collectively represent the broadest spectrum
of human achievement at the highest level of quality, all in the
service of the public and in accordance with the highest
professional standards.
• Microsoft(Open Link in new window) — Our mission is to
empower every person and organization on the planet to
achieve more.
• MIT (Open Link in new window)— The mission of MIT is to
advance knowledge and educate students in science, technology,
and other areas of scholarship that will best serve the nation and
the world in the 21st century.
• NASA(Open Link in new window) (National Aeronautics and
Space Administration) — NASA explores the unknown in air
and space, innovates for the benefit of humanity, and inspires
the world through discovery.
• Nike(Open Link in new window) — Bring inspiration and
innovation to every athlete* in the world. *If you have a body,
you are an athlete.
• Northwestern University(Open Link in new window) —
Northwestern is committed to excellent teaching, innovative
research, and the personal and intellectual growth of its students
in a diverse academic community.
 • Oprah Winfrey Network(Open Link in new window) —
OWN’s mission is to create multiple platforms for women, men,
and their families with a purpose and a passion: to celebrate life,
inspire and entertain, empower viewers around the world to live
their best lives, and by doing so, lift the lives of those around
them in ever-widening circles.
• Pepsi(Open Link in new window) — Create more smiles with
every sip and every bite.
• Shopify (Open Link in new window)— Making commerce
better for everyone.
• Starbucks(Open Link in new window) — To inspire and
nurture the human spirit – one person, one cup, and one
neighborhood at a time.
• Target(Open Link in new window) — To help all families
discover the joy of everyday life.
• Walt Disney Company(Open Link in new window) — The
mission of The Walt Disney Company is to entertain, inform and
inspire people around the globe through the power of
unparalleled storytelling, reflecting the iconic brands, creative
minds, and innovative technologies that make ours the world’s
premier entertainment company.

Know Who You Are and Where You’re Going

The mission statement focuses on today and what we do, and the
vision statement focuses on tomorrow and what we want to
become. Both are important to a company’s survival.
Call it the essence, beating heart, or the defining characteristic —
whatever you call it, make sure your mission and vision statements
are clearly defined and understood for the sake of your content and
your company.

Get a content mission and a content vision statement down on paper.

Share it with your team members. Then you can measure your future
content efforts against the two. Although they are not slogans or
taglines themselves, they should definitely help inform them and all
your content.

Knowing who you are and where you’re going is the foundation of an
organization’s success. So, who are you? And, where are you going?