Company VISION/

Mission

Saurabh
Asst. Prof.
SMVDU, Katra
VISION
 Broad category of long term intentions
 It is broad, inclusive and futuristic
 Mental image of future state
 Depends on leadership
 It provides direction and energy/motivation/inspiration e.g.
NASA- ‘To Improve Life’
Ford Motor company “ To become world’s leading consumer
company for automotive products and services”
General Electric “We bring good things to life”
McDonald’s “ To be world’s best quick service restaurant
experience. Being the best means providing outstanding
quality, service, cleanliness and value, so that we make every
customer in every restaurant smile”
Good Vision Statement

 Broad, inclusive and forward linking

 Aspiration for future

 Mental image

 Shared dreams across the

organisation
 Easy

 Reflect the Strategic Intent

 ORGANISATIONAL DIRECTION
DETERMINED BY

VISION Stakeholders/ Founder

MISSION Top Management

OBJECTIVES Unit together with top Management

PLANS Unit Manager with approval of supervisor

POLICIES Each Organizational Level in confirmation with

Other Unit Policies
GOALS
Individual Managers In Conformity with
the Unit Policies
STRATEGIES
&
TACTICS Individual Managers In Conformity with
the Unit Goals
 Strategy Stretch
Top Down + Bottom Up

Strategic Intent

CHALLENGES

OPPORTUNITIES
MISSION STATEMENTS
A mission statement, on the other hand,
describes the. product, the market and the
technological areas of emphasis for the
business, and forms its overriding raison d'etre?

The term 'mission' is defined as

"the fundamental and enduring purpose of

an organization that sets it apart from
other organizations of a similar nature".
Most Corporate mission statements
are built around three main
elements:
 History of the organization
 Distinct Competencies of the
organization
 The environment of the
organization
Characteristics of a Good Mission
Statement
 It differentiates the company from its
competitors.
 It defines the business (es) that the company
wants to be in, not necessarily the one (s) it is
in.
 It is inspiring.
 It is relevant to all the stakeholders in the firm,
not just shareholders and managers.
 It attempts to ensure that the organization
behaves in the way that it promises it will by
defining the purpose for which the firm exists.
 It seeks to clarify the purpose of the
organization - why it exists.
A mission statement usually attempts to answer
the following questions :

 What is unique or distinctive about our

organization?
 Who are, or should be, our principal customers,
clients?
 What are, or should be, our principal economic
concerns?
 What is likely to be different (from its existing
state) about our business three to five years in
the future?
 What are our principal products at present and
what will they be in the future?
 What are the basic beliefs, values, aspirations
and philosophical priorities of the firm
FORMULATING A MISSION STATEMENT

The mission statement is based upon the following

assumptions:

 The product or service can provide benefits at least equal to

its price.
 The technology to be used in production will provide a
product/service that is competitive in cost and quality.
 The product or service can satisfy a customer need
currently felt by specific market segments.
 The management philosophy of the business will result in a
favorable public image.
 The business will provide financial rewards for those willing
to invest their labor and money in the firm.
 With hard work and the support of others, the business can
grow and be profitable in the long run.
 The entrepreneur's concept of the business can be
communicated to and adopted by employees and
stockholders.
 As the business grows, the company may redefine its mission
statement. The revised mission statement generally reflects
the same set of elements as the original. It will state:

 The basic type of product or service to be

offered.
 The primary markets or" customer groups
to be served.
 The technology to be used in production
or delivery.
 The fundamental concern for survival
through growth and profitability.
 The public image sought.
 The managerial philosophy of the firm.
 The firm's self-concept.
 KEY ELEMENTS OF MISSION STATEMENT

VIEW of the FUTURE

FUNDAMENTAL
COMPETITIVE ARENAS INTENTIONS

Sources of Competitive
Advantage
The three indispensable components of
a mission statement

 Basic Product,

 Primary Market and

 Principal Technology
 Company Goals
A mission statement hardly ever gives concrete directions
for action. Hence the need for more specific company
goals.

Just as the mission statement tries to make a company's

vision more specific, company goals attempt to make a
mission statement more concrete.

Goals indicate a desired future state that a

company attempts to realize.
Goals should have three main characteristics:

 They should be precise and

measurable
 They should address important
issues
 They should specify a time period
in which they should be achieved
The Features of the Strategic Goals of an
Organization

 They address both financial and non

financial issues.
 They can be reached through
"stretch“.
 They facilitate reasonable trade-offs

 They cut across financial areas..

Therefore :
Goals are the most specific form of
strategic intent. Setting and
pursuing goals is an essential
process as goals give a general
sense of direction and provide
specific benchmarks for evaluating
the company's progress in
achieving its aims.
Company Philosophy
 Company philosophy and values give a
framework/boundary for individual actions
aimed at achieving corporate goals.

 A company's philosophy is also known as

its creed, and usually forms a part of the
company's mission. It reflects or states the
basic beliefs, values, aspirations, guiding
principles and philosophical priorities that
the strategic decision-makers are
committed to emphasize in their
management of the firm.
Public Image
 Public agitation often stimulates a heightened
corporate response, but an organization is
generally concerned about its image even in
the absence of expressed public concern.
Customers associate certain qualities with
certain companies.
 A company sets out to create a particular
public image from the start.
 The mission statement should reflect the
public image.
 The issue of public image is more important to
a growing firm that is involved in redefining its
markets, products, and its mission.
Company Self Concept
 A major determinant of any company's continued
success is its continuous interaction with the external
environment In a competitive environment, a firm
should realistically evaluate its own strengths and
weaknesses.

 The idea that the organization/firm must "know itself' is

the essence of the term 'company self-concept'. A
firm's ability to survive in a dynamic and highly
competitive environment would be severely limited if it
did not understand the impact that it has or could have
on the environment.

 A company's mission reveals its self-concept. The

strategic decision-makers should see the firm as a
socially responsive, prudent and independent entity.
SOCIAL RESPONSIBILITY

Citizens have started demanding that corporations be

accountable for their actions.

This movement has resulted in business managers

becoming more transparent and socially responsible in
their actions.

Organizations have started building social criteria into

their strategic decision-making. Human rights issues
and healthy environmental practices are no longer
seen as compromising on profitability.

The firms with a good reputation in these areas are

regarded highly by the public and are often able to
sustain profits
 Responsibilities of Business

ECONOMIC LEGAL ETHICAL DISCRETIONARY

(Must Do) (Have To Do) (Should DO) (Might Do)
 STAKEHOLDER APPROACH TO SOCIAL
RESPONSIBILITY

Claimants to a Company Mission

Inside Claimants. Outside Claimants:

• Customers.
• Executive Officers. • Suppliers.
• Board of Directors. COMPANY • Government.
• Stockholders and MISSION • Unions.
• Employees • Competitors.
• Local committees.
• General Public
 Process of Defining A Mission
w.r.t Claimant Groups

 Identification of Claimants

 Understanding Claimants' Demands

vis-a-vis the Company

 Coordination of Claims and Mission

Components

 Recognition and Prioritization of

Claims
 GUIDELINES FOR A SOCIALLY
RESPONSIBLE FIRM
 The main purpose of a business is to make profit.
Strategic managers should strive for the optimal profit that
can be achieved over the long run.

 Profits cannot be claimed until business costs are paid.

These costs include all the costs determined by a detailed
analysis of the social balance between the firm and
society.

 If there are social costs in areas where no objective

standards for correction exist, managers should generate
a corrective standard.

 When competitive pressure precludes socially

responsible action, the business should recognize that its
operation in depleting social capital that represents a loss.
Strategy and Business Ethics
 Ethics is defined as "the discipline
dealing with what is good and bad,
and right and wrong, or with moral
duty and obligation."
 Business ethics encompasses the
morality of issues in business.
 The purpose of business ethics is not
to teach the difference between right
and wrong, but to give people the
tools for dealing with moral complexity
 Ethical Decision Making

 There is no worldwide standard of

conduct for business people. Cultural
norms and values vary from country to
country, and ethnic groups within a
country
 Ethical Decision Making

STEP 1 STEP 3
STEP 2 STEP 4
Evaluate
Decision from
Ethical Evaluate
Standpoint decision
from Engage
Identify Establish in
ethical
Affected Moral Ethical
standpoint
stakeholders Intent Behavior
in the
Are rights
context of
Of moral
Stakeholders principles
violated