Vision, Mission,

Objectives, and Strategy

Session - 02
 Vision, Mission, Objectives, and
Strategy
The process of crafting and executing a company’s
strategy is an ongoing, continuous process
consisting of five interrelated stages:
 Developing a Strategic Vision that charts the
company’s long-term direction,

 A Mission Statement that describes the company’s

purpose.

 A set of Core Values to guide the pursuit of the vision

 Vision, Mission, Objectives, and
Strategy

Setting objectives for measuring the company’s

performance and tracking its progress in moving
in the intended long-term direction.
 Vision, Mission, Objectives, and
Strategy

 Crafting a Strategy for advancing the company along the path

management has charted and achieving its performance
objectives.

 Executing the chosen strategy efficiently and effectively.

 Monitoring Developments, evaluating performance, and

initiating corrective adjustments in the company’s vision and
mission statement, objectives, strategy, or approach to strategy
execution in light of actual experience, changing conditions,
 Vision, Mission, Objectives, and Strategy

Strategic Plan
A company’s strategic plan lays out its future
direction, performance targets, and strategy. The
first three stages of the strategic management
process involve making a strategic plan
 Vision, Mission, Objectives, and Strategy

Vision, Mission and Values are key elements of

an organization’s strategic planning.
They must be approved by the board of directors
and should be communicated to staff, volunteers,
members and other stakeholders
 Vision, Mission, Objectives, and Strategy

• Vision and Mission statements often can be

found in the front of annual reports.

• They often are displayed throughout a firm’s

premises

• Clear Vision and Mission statements are

needed before alternative strategies can be
formulated and implemented.
 Vision Statement …………….

Vision Statement Definition

A vision statement is a declaration of an
organization’s overarching objective or goal.
We refer to it as the DREAMING piece — if
everything goes right, it is how your organization
will change the world.
 Vision Statement …………….

A strategic vision describes “where we are

going”— management’s aspirations for the
company and the course and direction charted
to achieve them.
 Vision Statement …………….
 Top management’s views and conclusions about the
company’s long-term direction
 Strategic vision delineates management’s aspirations
for the business, providing a panoramic view of
“where we are going”
 A strategic vision points an organization in a
particular direction, charts a strategic path for it to
follow, builds commitment to the future course of
action, and molds organizational identity
 Vision Statement …………….

A clearly articulated strategic vision

communicates management’s aspirations to
stakeholders (customers, employees,
stockholders, suppliers, etc.)

An effectively communicated vision is a

valuable management tool for enlisting the
commitment of company personnel to actions
that move the company in the intended
direction.
 Vision Statement …………….

Vision Statements
To be a leading center of excellence in
teaching, learning, research and
scholarship….UoJ
To provide best possible human resources to
society in the field of Management and
Commerce….FMS&C
Our vision is to be an apex center of excellence
in teaching, learning and research &
 Vision Statement …………….

Samsung’s Vision Statement

Samsung’s corporate vision is to “Inspire the world
with our innovative technologies, products and
design that enrich people’s lives and contribute to
social prosperity by creating a new future.”
 Vision Statement …………….

 The company follows this vision statement to maintain

profitable technology business operations that contribute to
the improvement of people’s lives.
 Samsung frequently refers to a shortened version of this
corporate vision: “Vision 2020: Inspire the World, Create the
Future.”
 The company extensively implements this statement
throughout its subsidiaries’ operations in the consumer
electronics, computing technology, and semiconductors
industries.
 Vision Statement …………….

The following components are contained in

Samsung’s vision statement:
1. Global inspiration
2. Innovation
3. Improvement of lives and future social
prosperity
 Vision Statement …………….

Samsung’s strategic objectives include the

development of products that inspire.

This inspirational aspect requires the

company to consider local and regional
market conditions to ensure that its
technological products actually inspire people
despite differences in their societal
situations.
 Vision Statement …………….

Samsung’s corporate vision also pushes for a

high degree of innovation. Technological
innovation is especially notable in the
company’s products, such as smartphones and
laptops.

Moreover, the vision statement indicates

strategic efforts that include Samsung’s
corporate social responsibility strategy for
improving people’s lives and contributing to
 Vision Statement …………….

http://panmore.com/samsung-corporate-vision-
statement-corporate-mission-statement-
analysis

http://panmore.com/samsung-swot-analysis-
internal-external-factors-recommendations
 Vision Statement …………….

Microsoft’s Corporate Vision Statement

Microsoft’s corporate vision is “to help people
and businesses throughout the world realize
their full potential.”
 Microsoft’s Corporate Vision Statement

Microsoft’s Corporate Vision This vision statement

Statement
shows that the company
presents its business and
Microsoft’s corporate
computing products as
vision is “to help people
tools that people and
and businesses
business organizations
throughout the world
can use for their
realize their full potential.”
development.
 Vision Statement …………….

Microsoft’s corporate vision statement has the

following components:

1. People and businesses throughout the world

2. Help to realize
3. Full potential
Vision Statement …………….
Vision Statement …………….
 Communicating the Strategic Vision

Communicating the Strategic Vision

A strategic vision has little value to the
organization unless it’s effectively
communicated down the line to lower-level
managers and employees.
A vision cannot provide direction for middle
managers or inspire and energize employees
unless everyone in the company is familiar
with it.
 Communicating the Strategic Vision
 It is particularly important for executives to provide a
compelling rationale for a new strategic vision and
company direction.

 When company personnel don’t understand or accept the

need for redirecting organizational efforts, they are prone to
resist change.

 Explaining the basis for the new direction, addressing

employee concerns head-on, calming fears, lifting spirits,
and providing updates and progress reports all become part
 Communicating the Strategic Vision

 https://www.slideshare.net/openinnovation/visions-missions-
of-fortune-global-100/9-
ChevronVisionTo_be_the_global_energy
 Benefits of a Vision Statement
 It will help you know where you are going
 It will help you make better decisions
 It will help you attract and motivate your staff
 It will help make the company not totally dependent
on you and a few individuals
 Mission Statement

A mission statement describes the enterprise’s

present business and purpose—“who we are,
what we do, and why we are here.” It is purely
descriptive.

Mission Statement………………….
An enduring statement of purpose
Distinguishes one firm from another in the same business
A declaration of a firm’s reason for existence
 Mission Statement

A mission is a general expression of the overall

purpose of the organization, which, ideally, is
in line with the values and expectations of
major stakeholders and concerned with the
scope and boundaries of the organization.
 Mission Statement

 Mission statement identifies the company’s products

and/or services
 Mission statement specifies the buyer needs that the
company seeks to satisfy and the customer groups or
markets that it serves
 Mission statement gives the company its own
identity.
 Mission Statement

Developing a mission statement compels

strategists to think about the nature and
scope of present operations and to assess
the potential attractiveness of future
markets and activities.

A mission statement broadly charts the future

direction of an organization.
 Mission Statement & Vision Statement

A strategic vision A company’s

portrays a mission describes
company’s the scope and
aspirations for its purpose of its
future (“where we present business
are going”) (“who we are, what
we do, and why we
are here”).
 Mission Statement

 Mission statements can and do vary in length,

contend, format, and specificity.
 Most practitioners and academicians of strategic
management consider an effective statement to
exhibit nine characteristics or components.
 Because a mission statement is often the most
visible and public part of the strategic management
process, it is important that it includes all of these
essential components.
 Characteristics of good Mission
Statements
Effective mission statements should be:
 Broad in scope
 Generate range of feasible strategic alternatives
 Not excessively specific
 Reconcile interests among diverse stakeholders
 Finely balanced between specificity & generality
 Arouse positive feelings and emotions
 Motivate readers to action
 Characteristics of good Mission
Statements
Effective mission statements should be:
 Generate the impression that firm is successful, has
direction, and is worthy of time, support, and
investment
 Reflect judgments and future growth
 Provide criteria for selecting strategies
 Basis for generating & screening strategic options
 Are dynamic in orientation
 Components and corresponding questions
that a mission statement should answer
 Customer: Who are the firm’s customers?
 Products or services: What are the firm’s major
products or services?
 Markets: Geographically, where does the firm
compete?
 Technology: Is the firm technologically current?
 Concern for survival, growth, and profitability: Is the
firm committed to growth and financial soundness?
 Components and corresponding questions
that a mission statement should answer
 Philosophy: What are the basic beliefs, values,
aspirations, and ethical priorities of the firm?
 Self-concept: What is the firm’s distinctive
competence or major competitive advantage?
 Concern for public image: Is the firm responsive to
social, community, and environmental concerns?
 Concern for employees: Are employees a valuable
asset of the firm?
 Company Values -

 A company’s values are the beliefs, traits, and

behavioral norms that company personnel are
expected to display in conducting the company’s
business and pursuing its strategic vision and
mission.

 Company values (also called corporate values or

core values) are the set of guiding principles and
fundamental beliefs that help a group of people
function together as a team and work toward a
 Company Values

 Many companies have developed a set of values to

guide the actions and behavior of company
personnel in conducting the company’s business
and pursuing its strategic vision and mission.

 https://www.hotjar.com/blog/company-
values/#what-are-company-values
 Company Values

Why are company values important?

From a business perspective, having a core set of
company values makes it easier for a company to
make decisions, quickly communicate principles
to clients and customers, and hire employees with
the right attitude.
 Company Values
4 Elements of Effective Company Core Values
1. Lead with your vision statement - Company values
are the principles that should support vision
2. Keep your values unique - an effective company
value should be unique to your company and
experience.
3. Make values simple to understand and remember
4. Evolve your values over time - Re-examine
company values as your company grows
Company Values
1. Integrity 10. Continuous Learning
2. Boldness 11. Ownership
3. Honesty 12. Constant Improvement
4. Trust 13. Leadership
5. Accountability 14. Diversity
6. Commitment to 15. Innovation
Customers
16. Quality
7. Passion
17. Teamwork
8. Fun
18. Simplicity
9. Humility
 Company Values

 Most companies have articulated four to eight core

values that company personnel are expected to
display and that are supposed to be mirrored in how
the company conducts its business
 Value Statement: Defining the Heart of
Your Company
 A value statement isn’t some kind of jargon speak for
“what we think matters”. It’s a statement of what
your company is, what it stands for, and what
everyone can expect from it. It’s the “soul” of
your business.

 The term “value statement” is pretty self-explanatory.

 It’s a message which conveys the values and

priorities of the company. This lets your customers
and staff know what’s important to your business and
 Value Statement: Defining the Heart of
Your Company
 A value statement isn’t some kind of jargon speak for
“what we think matters”. It’s a statement of what
your company is, what it stands for, and what
everyone can expect from it. It’s the “soul” of
your business.

 The term “value statement” is pretty self-explanatory.

 It’s a message which conveys the values and

priorities of the company. This lets your customers
and staff know what’s important to your business and
 Company Values
At Kodak, the core values are
 Respect for the dignity of the individual,
 Uncompromising integrity
 Unquestioned trust
 Constant credibility
 Continual improvement and personal renewal,
 Open celebration of individual and team
achievements.
 Company Objectives

Objectives are an organization’s performance

targets - the specific results management
wants to achieve.
 Company Objectives

 The managerial purpose of setting objectives is to

convert the vision and mission into specific
performance targets.

 Objectives reflect management’s aspirations for

company performance in light of the industry’s
prevailing economic and competitive conditions
and the company’s internal capabilities
 Company Objectives - What Kinds of
Objectives to Set?
Two distinct types of performance targets are required

- Financial objectives
- Strategic objectives

 Financial objectives relate to the financial performance targets

management has established for the organization to achieve.
 Strategic objectives relate to target outcomes that indicate a
company is strengthening its market standing, competitive
position, and future business prospects.
 Company Objectives - What Kinds of
Objectives to Set?

 A company’s set of financial and strategic objectives

should include both short-term and longer-term
performance targets.
 Short-term (quarterly or annual) objectives focus
attention on delivering performance improvements
in the current period and satisfy shareholder
expectations for short -term progress.
 Longer-term targets (three to five years off) force
managers to consider what to do now to put the
company in position to perform better later
 The Need for a Balanced Approach
to Objective Setting
 The importance of setting and attaining financial objectives is
obvious.
 Without adequate profitability and financial strength, a
company’s long-term health and ultimate survival are
jeopardized.
 However, good financial performance, by itself, is not enough.
 Of equal or greater importance is a company’s strategic
performance —outcomes that indicate whether a company’s
market position and competitiveness are deteriorating,
holding steady, or improving.
 A stronger market standing and greater competitive
 The Need for a Balanced Approach
to Objective Setting
 Moreover, a company’s financial performance measures are
really lagging indicators that reflect the results of past
decisions and organizational activities.
 But a company’s past or current financial performance is
not a reliable indicator of its future prospects
 The best and most reliable leading indicators of a company’s
future financial performance and business prospects are
strategic outcomes that indicate whether the company’s
competitiveness and market position are stronger or
weaker.
 The accomplishment of strategic objectives signals that the
company is well positioned to sustain or improve its
 The Need for a Balanced Approach
to Objective Setting
 If a company is achieving strategic objectives such that its
competitive strength and market position are on the rise,
then there’s reason to expect that its future financial
performance will be better than its current or past
performance.

 If a company is losing competitors and its market position is

slipping -outcomes that reflect weak strategic performance
(and, very likely, failure to achieve its strategic objectives)—
then its ability to maintain its present profitability is highly
suspect.
 The Need for a Balanced Approach
to Objective Setting
 It is important to use a performance measurement system that
strikes a balance between financial objectives and strategic
objectives.
 The most widely used framework is known as the Balanced
Scorecard.
 Balanced Scorecard is a method for linking financial
performance objectives to specific strategic objectives that
derive from a company’s business model.
 The Need for a Balanced Approach
to Objective Setting

 The Balanced Scorecard is a widely used method for

combining the use of both strategic and financial
objectives, tracking their achievement, and giving
management a more complete and balanced view of how
well an organization is performing.
 It provides a company’s employees with clear guidelines about
how their jobs are linked to the overall objectives of the
organization, so they can contribute most productively and
collaboratively to the achievement of these goals.
 https://fitsmallbusiness.com/core-values-list/
 Setting Objectives for Every Organizational
Level

Objective setting should not stop with top

management’s establishing of companywide
performance targets.
Company objectives need to be broken down
into performance targets for each of the
organization’s separate businesses,
product lines, functional departments, and
individual work units.
 Setting Objectives for Every Organizational
Level
 Employees within various functional areas and
operating levels will be guided much better by
specific objectives relating directly to their
departmental activities than broad organizational-level
goals.

 Objective setting is thus a top-down process that

must extend to the lowest organizational levels.
This means that each organizational unit must take care
to set performance targets that support—rather than
conflict with companywide strategic and financial
 For Web - Reference
 https://fitsmallbusiness.com/core-values-list/
 https://www.process.st/value-statement/
 https://recruitingsocial.com/2017/06/core-values-
guide/
 https://blog.hubspot.com/marketing/company-
values
 https://7geese.com/the-difference-between-core-
values-mission-and-vision-statements-and-goals/
 https://status.net/articles/mission-statement-