CORPORATE STRATEGY

Vision , Mission
, Objectives & Goals
Stanley Kavale, PHD.
Chapter Three
May, 2020
“Vision
description of something in the future”

“mental perception of the kind of environment an

individual, or an organization, aspires to create
within a broad time horizon and the underlying
conditions for the actualization of this perception”
Vision Statement
A vision statement answers the question,
“ What will success look like?”
The pursuit of this image of success is what
motivates people to work together.
 The Nature of
the Vision
Vision

fut d a
ired war
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des g to
vin
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Current Staying the course

reality
3
A Vision provides strong foundation for developing a
comprehensive mission statement .
 Strategic vision addresses the „where are we going‟
questions and explains the course and direction
chartered by management.
 A strategic vision should provide a clear understanding
of what the business should look like and provide help to
take strategic decisions.
 A vision is a clear, comprehensive photograph‟ of an
organization at some point in the future. It provides
direction because it describes what the organization needs
to be like, to be successful within the future.
•Strategic intent should lead to an end.
•That end is the vision of an organization or an individual.
•It is what the firm or a person
would ultimately like to
become.
•Should be short and specific.
•It should be based on overall purpose of organization
•“Good business leaders create a vision, articulate the vision,
passionately own the vision, and relentlessly drive it to
completion.”
Defines the desired or intended future state of
an organization or enterprise in terms of its
strategic direction. Vision is a long term view,
sometimes describing how the organization
would like the world in which it operates to
be. For example a charity working with the
poor might have a vision statement which
read "A world without poverty
• An attractive, ideal future that is credible yet
• not readily available
• Works at multiple levels
• Must be inspirational at all levels
• Encourages independent action
• Self-reference
 Characteristics

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

organization the management is trying to
create and the market position it would
occupy.
2. It should be forward looking a provide
strategic course the management will adopt
to help the company prepare the future
3. Specific and provide guidelines to managers
for making decisions and allocating resources
4. Flexible to changing environment
5. Within realm of companies hope to achieve
6. Appeal to emotions and motivate employees
7. Narrow vision, can focus effort and excite
people
8. May not fit to present circumstance, but
contributes to future. Shows picture of future.
9. Should be easy to explain to all stake holders
and preferably short
 What vision does
• Links the present to the future
• Energizes people and gains commitment
• Gives meaning to work
• Establishes a standard of excellence and integrity
• Gets team focused.
• Shows a picture of where the company is going.
• Instills focus, discipline, and structure within the
organization.
• Ensures that team understands company direction.
 Benefits of having a vision

 Good visions are inspiring and exhilarating.

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

• Vision has broad appeal

• Vision deals with change
• Vision encourages faith and hope
• Vision reflects high ideals
• Vision defines the destination and the journey

11
 How to write a Vision?
 
• Determine the organization's overriding goal
• State what the organization envisions itself to be in terms
of values, employees, growth and contributions to society.
• Look at vision statements of competitors in the industry
• Use wording that will inspire your team. Think of adjectives
and sentences that will get the team excited and will make
them think they are part of something that is much bigger
than something they could have thought of themselves.
• Get other people on the team to critique the draft of the
vision to make sure it's effective and inspiring. If there are
any key customers the organization trusts, ask them to
review the draft too.
 6

7 Steps to produce a vision

statement
–
 7

7 Steps to produce a vision

statement

–
 Limitations of a vision statement

 Vague and incomplete

 Not forward looking
 Too broad, & Uninspiring
 Not distinctive

 Eg.
 Walt Disney vision Statement : “Make people happy”
 Vision “To be a globally respected corporation that
provides best-of- breed business solutions, leveraging
technology, delivered by best-in- class people."
 Tasks?/ Discussions?

• Identify a vision of an existing firm

and dissect it. See if it qualifies as
per the above discussion!
• If not, recommend for its
improvement/ review
• Craft a vision for a future firm of
your choice (don’t copy existing
vision)
THANK YOU

Dr. Stanley Kavale©2020

 2. Mission
“essential purpose of the organization,
concerning particularly why it is in existence, the nature of the
business it is in, and the customers it seeks to serve and
satisfy.”
“purpose or reason for the organization‟s existence.”
“mission is an enduring statement of purpose that
distinguishes one firm from other similar firm.”
Organizations relate their existence to satisfying a particular
need of the society. They do it in terms of their mission.
Mission is a statement which defines the role that an
organization plays in a society. It refers to the particular
need of that society for instance, its information needs.
• Definition: A sentence describing a company's
function, markets and competitive
advantages; a short written statement of your
business goals and philosophies
• A mission statement defines what an
organization is, why it exists, its reason for
being. At a minimum, your mission statement
should define who your primary customers
are, identify the products and services you
produce, and describe the geographical
location in which you operate
“The organization’s core broad purpose and
reason for existence
Two critical parts:
Core values guide the organization
Core purpose is why the organization exists

A mission statement is an enduring statement of purpose

that distinguishes one business from other similar firms. A
mission statement identifies the scope of a firm‟s
operations in product and market terms.”
“ e.g To provide world class telecom infrastructure in its
area of operation and to contribute to the growth of
country‟s economy.”
The mission statement of an organization is normally
short, to the point, and contains the following elements:
Provides a concise statement of why
the organization exists, and what it is to achieve;
States the purpose and identity of
the organization;
Defines the institution's values and philosophy;

Describes how the organization will serve those

 Products
Customers Services Markets

Technology
Mission
Employees
Elements
Survival
Growth
Public Profit
Image
Self-Concept
Components of mission statement

1.Product or service
2.Customers
3.Technology
4.Survival, growth & profitability
5.Company philosophy
6.Public image
7.employees
1) Product or service
Invariably includes mention of the product or
service the company offers to customers.
2) customers
Information in the mission statement describes the
profiles of customers and the organization it
services.
3) Technology
Components of the mission statement generally
refers to means of
production, operations and organizational functions.
It include elements such as
equipments, materials, techniques, processes
4) survival, growth and profitability
 make a general reference to the company‟s
survival and healthy functioning, which include
growth and profitability.
5) Company philosophy :
It reflects the basic
believes, values, aspirations and ethical priorities of
company that guide the employee in conditioning
organizational function.
6) Public image :
 elements of the company deals with how the
company wishes to be viewed by external
constituencies.
To create a positive public image, the mission
statement could explicitly refers to the
responsiveness of the company to concerns about
the company and the society
7) Employees:
To develop a public image a company could
include concerns for recognition of the value of
employees in the statement
Importance of Mission

Benefits from a strong mission

Unanimity of Purpose

Resource Allocation
Mission
Organizational Climate

Focal point for work

structure
 How to write a Mission?
• Ask "What do we do?"; "How do we do it?"; and
"For whom do we do it,"
• Create a draft mission statement describing how
the company uniquely answers these questions.
Touch on the organization's current operations and
the industry it is in.
• Look at competitors in the industry and use their
mission statements for research. Ask yourself what
works and what does not work. Revise your
mission statement as needed.
• Get feedback from other members of the
organization once the statement is drafted. 
 Formulating mission
1. What is the basic purpose of your organization?
2. What is unique about your organization?
3. What is in your company that will make it stand
out in a crowd?
4. Who are, and who should be,
your principal customers?
5. What are the basic beliefs,
values and philosophical priorities of your
firm?
 Need for an explicit mission
To ensure unanimity of purpose within the
organization.
To provide a basis for motivating
the use of the organizations resources.
To develop a basis, or standard,
for allocating organizational resources.
To establish a general tone or orgn’
climate.
To serve as a focal point for those who can identify with
the organization‟s purpose and direction.
E.g
1.3M "To solve unsolved problems innovatively"
2.Google's mission is “to organize the world's information
and make it universally accessible and useful.”
 The Difference between Vision &
• Vision - The Future Mission
• Definition: The way in which one sees or conceives
something; a mental image; An overall statement of the
goal of the organization.
• Vision should describe what will be achieved in the wider
sphere if the organization and others are successful in
achieving their individual missions. 
• Mission - The Present
• Definition: An assignment one is sent to carry out; a
self-imposed duty. A mission statement identifies the
reason for the existence of the organization. The
statement should be linked to the overall operations and
business of the organization
• A Mission statement is more specific to what the
enterprise can achieve itself.
 Diffrence b/w vision and mission

Mission Statement Vision Statement

A Mission statement talks about HOW A Vision statement outlines WHERE you want to be.
you will get to where you want to be. Communicates both the purpose and values of
Defines your business.
About the purpose and primary objectives related
to your customer needs and team values.

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

A mission statement talks about A vision statement talks about your

the future.
Time present leading to its future.

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

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

statement Whom and Why?

Purpose and values of the Clarity and lack of ambiguity: Describing a

organization: Who are the bright future (hope); Memorable and
organization's primary engaging expression; realistic aspirations,
"clients" (stakeholders)? What achievable; alignment with organizational
are the
responsibilities of values and culture
the
Features of an organization towards the
effective statement clients?
 Tasks?/ discussion?

i. Craft a mission for a future firm of

your choice (don’t copy existing
mission)
ii. Which comes first? Mission? Or
vision? Why?
THANK YOU

Dr. Stanley Kavale©2020

 3. Objectives
Objectives represent a managerial commitment
to achieve specified results in a specified
period, of time. They clearly spell out the
quantity and quality of performance to be
achieved, the time period, the process and the
person who is responsible for the
achievement of the objective.
“Objectives are end results of
planned activity”
“Objectives state what is to be accomplished by
when and should be quantified if possible.”
 • objectives are more specific and narrower
• Objectives are always measurable
and particular
• It vary with the hierarchicallevel in
the organization, becoming more focused and
shortgoing down from top level to frontline
term
managers.
•Objectives are critical for
effectiveness and efficiency, and itorganizational
has been
shown that managers who aggressively pursue
objectives perform better that managers who are
not driven by them.
Importance of objectives
1.Objectives help to define the organization in its
environment
2.Objectives help in coordinating decisions and
decision-maker
3.Objectives help in formulating strategies

4.Objectives provide standards for assessing

organizational performance
Characteristics of objectives
1.Facilitate to achieve mission and goals
2.Set the basis for strategic decision making
3.Clear the relationship of organization with environment
4.Understandable to each member of organization
5.Should be measurable and controllable• Should be relat ed
to time frame
6.Should be challenging• Should be concrete and specific
7.Should be formed within the constraints
8.Should motivate people.
Characteristics of good Objective
SMART?

1.Specific and Unambiguous

2.Time horizon
3.Flexible
4.Attainable
5.Measurable
6.Multiple objectives
 1) Specific and unambiguous
Help to remove confusion about the target
at which efforts should be directed
Help to determine reward structure in fair
and equitable manner
Eg : objective of almost every business
would have increased profitability, but it
should be explicitly explained, as 10%
increase in profit
 2) Time horizon
 Should be stated in terms of a time frame within
which they should be attained
 Without a timeframe, an objective would be
ineffective and almost meaningless.
 Eg : A 10% increase in profit being targeted over a
year is a different, objective than over 2yrs, if there
is no time horizon, this objective would serve no
purpose
 3) Flexible
 Since objectives are set in the future, which cannot
be predicted, exactly there should be room for
altering an objective should the environment
change.
 4) Attainable
 Objectives are balanced act between being too easy and
too difficult
 Should be challenging enough in that they give rise to
innovation and fresh approaches, yet they should be
achievable with not too much increase in resourse
 5) Measurable
 Should be stated in quantifiable, measurable terms
 So everyone can clear about
objectives, progress can be measured towards the
objectives and employees morale can be tied to number
rather than personalities
 6) Multiple objective
Rare to have just one objective that all
employees work towards.
Eg : An objective such as increasing in
number of customers served would directly
with either a cost maximization or quality
improvement objective.
Even when the management aligns different
objectives, even seemingly opposing
ones, but all efforts is coordinated in the same
direction.
Factors affecting Objectives
1.Size of the organization :Bigger size makes
that objective formulation process complex.
2.Level of management :Organizational
objectives are set by managers. Different levels
of managers set different kinds of objectives.
3.Organization culture :Culture is a system of
shared set of values,beliefs and norms that
guide behavior.
Areas of objectives

1.Markets share
2.Leadership in innovation and technology
3.Product quality and productivity
4.Resource level
5.Customer satisfaction
6.Performance level
7.Social responsiveness
 1) Market share
Healthy market share should sustain even as an
organization tries to increase its share.
Sustainable market share is important in stable
markets and in competitive environment.

2) Leadership in innovation & productivity

 Innovation is needed for success and in some
cases for survival.
 Innovation must be translated into objectives and
indicate what the organization is aiming for.
 3) Product quality and productivity
Designing and ensuring quality has been shown
to be critical competitive strength.
Constant balance between achieving efficiency
as related to cost-cutting objective and
maintaining quality.
4) Recourse level
Resources includes inventory, equipments,
capital, human capital
Resources imply cost, their use should be
minimized without any compromise in aspects
such as quality and serivice
5) Customer satisfaction
Maintaining customer relations and building
customer loyalty and goodwill are highly
desirable
e.g of Financial objectives
1.To achieve 10% growth in earnings per
share.
2.To achieve 20% - 25% return
on equity.
3.To achieve 27% return on capital
employed.
 6) Performance level
Related to productivity and effectiveness
Performance objectives can also include
innovation and professional development

7) Social responsiveness
Business respond to society and community by
specifying explicit objectives for socially
beneficial activities.
 Tasks?/ Discussion?

• Review objectives of your organization

and find out if they have been met. If
not find out why?
• How often (when) should objectives be
reviewed/ changed in an organization?
THANK YOU

Dr. Stanley Kavale©2020

 4. Goals

Goal is defined as an “intermediate result to be

achieved by a certain time as part of the grand
plan . A plan can, there for have many goals.”
•Goal is a specific target that a firm intend to
reach in long term.
•A describes clearly the activities and task to be
completed by an individual, a department or an
organization.
•Goals should be measurable,
quantitative, challenging, realistic, consistent
and prioritized.
•Provide basics for measuring companies
performance and the process it is making towards
the vision.

•Strategic goals help managers to establish end

result of activities in general without getting
bogged down in details, such as issues of
measurement and timing.
•Eg. Goals can be
•Financial goals
•Strategic goals
 Characteristics of goals
1) Specific : so that they are precise and
measurable, would assist management in
monitoring the progress towards achievement
of goals at each specific point of time
2) Issues of goal :
 Short-term goals and objectives should be left
to lower level managers to identify, plan and
achieve
 Issues like lowering of cost and improving
quality should be included in goals of middle
level managers
3) should be well constructed, realistic and
challenging :
Challenging goals motivates managers to be
innovative, creative and ambitious in improving
operations, marketing, sales, etc.
4) Specification of time period

Provide quality service to customer at least

equal to the highest standard in the industry
Maintain reliability of service to customer at a
level above 99%
Promote economic growth and increased
development of the company’s total service area
 Goal vs Objectives :
Goals are an expected or desired outcome of a
planning process. Goals are usually broad,
general expressions of the guiding principles
and aspirations of an organization.

Objectives are precise targets that are

to achieve goals. Objectives
necessary statements of quantitatively are
detailed
qualitatively or
measurable results the plan hopes
to accomplish.
 Goals vs objectives Objective
Goal

The purpose toward which an endeavor Something that one's

is efforts or actions are
directed. intended to attain or
Meaning accomplish; purpose;
target.

I want to achieve success in the field of I want to complete

genetic research and do what no one has ever this thesis on genetic
done. research by the end
Example
of this month.

Generic action, or better still, an outcome Specific action - the

towards objective supports
Action which we strive. attainment of the
associated goal.

Goals may not be strictly measurable or Must be measurable and

Measure tangible. tangible.

Mid to short term

Time frame Longer term
 Task?/ Discussion?

• How often (when) should goals be

reviewed/ changed in an organization?
• Which should come first? Goals or
objectives?
THANK YOU

Dr. Stanley Kavale©2020

 15

5. Values
– Values are traits or qualities that are considered
worthwhile; they represent an individual‟s
highest priorities and deeply held driving
forces.
– Value statements are grounded in values and
define how people want to behave with each
other in the organization. . . . Value statements
describe actions that are the living enactment
of the fundamental values held by most
individuals within the organization.
• The operating philosophies or principles that guide
an organization's internal conduct as well as
its relationship with its customers, partners,
and shareholders. Core values are usually
summarized in the mission statement or in the
company’s statement of core values
• Core values are the basis upon which the
members of a company make decisions, plan
strategies, and interact with each other and their
stakeholders. The core values of a company are
intrinsic -- they come from leaders inside of the
company. Core values work the same way for a
company as they do for a family
• CORE VALUES:
.Govern personal relationships .
.Guide business processes 
.Clarify who we are 
.Articulate what we stand for 
.Help explain why we do business the way we
do 
.Guide us on how to teach 
.Inform us on how to reward 
.Guide us in making decisions 
.Underpin the whole organization 
.Require no external justification 
.Essential tenets
• CORE VALUES ARE NOT:
• Operating practices 
.Business strategies 
.Cultural norms 
.Competencies 
.Changed in response to market/
administration changes 
.Used individually
 Tasks?/ Discussion?

• List the core values in your organization

• (organization you are conversant with)
THANK YOU

Dr. Stanley Kavale©2020

 • 6. Business Policy
• POLICY - the scope or spheres within which decisions
can be taken by the subordinates in an organization.
permits the lower level management to deal with the
problems and issues without consulting top level
management every time for decisions.
• 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.
• BS 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.
• A course of action that will create a
desired objective in the interest of the
masses or the people in a given country.

• Types of policies
Substantive and Administration policy
Vertical and Horizontal Policy
Reactive and Proactive Policy
Current and Future Policy
 • Features of Business Policy
• Specific- Policy should be specific/definite. If it is
uncertain, the implementation will become difficult.
• Clear- Policy must be unambiguous. It should avoid
use of jargons and connotations. There should be no
misunderstandings in following the policy.
• Reliable/Uniform- Policy must be uniform enough
so that it can be efficiently followed by subordinates.
• Appropriate- Policy should be appropriate to the
present organizational goal.
• Simple- A policy should be simple and easily
understood by all in the organization.
• Inclusive/Comprehensive- In order to have a wide
scope, a policy must be comprehensive.
• 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.
• Stable- Policy should be stable else it will lead to
indecisiveness and uncertainty in minds of those who
look into it for guidance.
 • POLICY vs STRATEGY
• Policy - blueprint of the organizational activities which are
repetitive/routine in nature.
• Strategy -organizational decisions which have not been
dealt/faced before in same form.
• Policy formulation - responsibility of top level mgt
• Strategy formulation – Top & middle level management.
• Policy - routine/daily activities essential for effective and
efficient running of an organization.
• Strategy -strategic decisions.
• Policy -both thought and actions.
• Strategy - mostly with action.
• A policy - what is, or what is not done.
• Strategy –methodology to achieve target as prescribed by
a policy.
 Policy formulation processes

Several steps comprise the policy process

1. Selecting the desired objective.
2. Identifying the target of the objective.

3. Determining the pathway to reach objective.

that measure in
4.
respect
Designing
of that
the goal;
specific
Target, program
Cost and Financing,
Political
or issues.
5. Implementing the measure and assessing its
impact.
 Tasks?/ Discussion?

• How often (when) should policies be

changed in an organization?
THANK YOU

Dr. Stanley Kavale©2020