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17 views23 pages

Att.9 tJ9aobQbfdCF3RRTyGBri4UlA0fGKr Urqp6xOqD0

Uploaded by

tamangsamika3
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BBA 8 Semester

th

MGT 208 Business Strategy


By Rajesh Karki
Unit – 2
Vision and Mission, Objectives and Strategy

Concept of Strategic Vision


The picture of desired future state of an organization that reflects a
firm’s values and aspiration.
Strategic Visions
Characteristics / Qualities of strategic visions
• Future focused
• Directional
• Clear
• Feasible
• Values based
• Challenging
• Unique
• Inspiring
Strategic Visions

Benefits of strategic vision


• Provides direction
• Guides for decisions
• Shapes strategy
• Sets priority
• Aligns people and activities
• Reflects core values and belief
• Empowers employees
• Brings change
Developing Strategic Vision
• A wider participation in development of strategic vision enhances
their effectiveness.
1. All the key factors such as internal strength and weakness, external
changes and trends, emerging needs and service expectations of
customers should be reviewed very carefully.
2. It should be external and market oriented and express in
inspiration……
3. All the managers from top to lower level should be involved in the ,
…… of developing the strategic vision. It enhances commitment
towards organization. It facilitates formulation and implementation
of strategy.
Developing Strategic Vision
4. The managers should be asked to review related literature on the …… and
prepare a strategic vision and mission statement for the organization.
5. The statements prepared by different managers should be merged …
single document and distribute the draft statements to all managers.
6. A meeting of the managers is held for modifications, addition and
deletions if needed and revise the documents.
7. As mentioned earlier, the input and support from the employees
….managers enriches strategy formulation, implementation and evaluate
activities. Hence, the development of strategic vision statement provides
opportunity for strategists to obtain needed support from all the
employees and managers.
Developing Strategic Vision
8. Some organizations use group discussions to develop and modify the
existing statement. An outside consultant or facilitator may also be
….manage the process and help draft the language.
9. After preparing the statements, decisions on how to communicate
…….managers, employees and external stakeholders are needed. A ……
may be prepared to explain the statement.
Communicating the strategic visions

The strategic vision should be well communicated to all managers,


employees, and external stakeholders. A clear communicated strategic
values provides long term direction to the organizations.
Mission

Concept of mission
• The reason of organizational existence defines the business in terms
of customers, employees, suppliers and the community.
Crafting a mission statement

• Define the purpose


• Make it broad in scope
• Precise
• Inspiring
• Distinctive
Importance of mission

• Brings uniformity
• Base of resource allocation
• Develops organizational culture
• Enhances employee ownership
• Defines the business
• Reflects the organizational responsibility
• Shows the operating philosophy
Difference between vision and mission statement
Basics of Vision statement Mission statement
difference
Objectives Its aim is to show where the Its aim to show how the organization
organization wants to be in future. will get to where it wants to be.
Answer It answers the questions, “Where It answers the questions, “What do
do we aim to be?” we do? What makes us different?”
Time A vision statement talks about A mission statement talks about the
future. present leading to its future.
Change A vision statement does not change A mission statement changes with the
even if the market conditions change in market conditions.
change.

Functions It describes where the organization It lists the broad goals for which the
sees itself years from now. organization is formed.
Characteristics of mission
• Broad in scope
• Precise
• Inspiring
• Multi components
• Distinctive
• Components of strategy
Linking vision and mission with company values
There is a close linkage between vision, mission and company values.
The vision is the foundation for the mission. A mission statement
defines the business in terms of the customers, employees, suppliers
and its community. The value statement is the description of the
guiding principles of organizational activities . Company values provide
support for the vision and mission.
Objectives
Concept of objectives
• The expected outcomes of an organization are known as objectives. They
convert the strategic visions into specific performance targets. Objectives
shows the managerial commitment towards performance achievement.
Objectives
Components of objectives
• Specific
• Measurable
• Achievable
• Realistic
• Timely
• Motivating
• Flexible
• Hierarchical
• Congruent across departments
Crafting objectives
• Define vision, mission and values
• Environmental analysis
• Determination of strategic objective
• Formulation of financial objective
Levels of objectives
• Corporate level objectives
• Business level objectives
• Functional level objectives
• Individual level objectives
Role of objective in strategic management
• Objectives define the relationship of the organization with its
environment.
• Shows the relevancy of vision and mission of the organization.
• Provide the base of strategic decision making.
• Also provide foundation for the development of work standard.
• Helps develop distinctiveness and existence of an organization and
enhance organizational attractiveness.
Financial versus strategic objective
Financial objectives
• Annual percentage increases in sales
• Annual percentage increase in after tax profit
• Annual percentage increase in earning per share
• Percentage return on capital employed or equity
• Sufficient cash flows
Financial versus strategic objective
Strategic objectives
• Percentage increase in market share
• Achieving lower overall cost than the competitors
• Achieving technological leadership
• Superior product performance or quality or customer service
Differences between financial and strategic
objectives
Bases of Financial objectives Strategic objectives
differences
Time They are the expected outcome They are the expected outcome
of an organization in short range of an organization in long range
normally within or below 1 year. normally above 5 years.
Expression They are expressed in They are expressed in qualitative
quantitative terms. terms.
Support They support the strategic They support the strategic vision.
objectives.
Scope They are narrower than the They are broad in nature.
strategic objectives.
The End

THANK YOU

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