A mental image of a possible or desirable future state of organization What a company want to become in future.

VISION

Core ideology

Envisioned future

Core ideology:-What we stand for & why we exists ; which remains unaffected by environmental changes. Envisioned future:-what we aspire to become , to achieve , to create Examples:HUL:-To meet the everyday needs of people. Cannon:-Beat Xerox Motorola:-Total customer satisfaction.

A good vision must be:Easily communicable Directional:-must say something about companys destination Feasible:-must be something that company can reasonably expect to achieve in due course of time. Focused:-must be specific enough to provide managers with guidance in decision making Appealing to long term interests of the stakeholders. flexible

Importance : A basis for performance Reflects core values Way to communicate A desirable challenge

It defines a companys reason for existence. Essential purpose of the organization , concerning particularly why it is in existence, the nature of businesses it is in & the customers it seeks to serve & satisfy Examples:-McDonald:-to offer the customer fast food prepared in the same high quality worldwide, tasty & reasonably priced, delivered in a friendly manner

It should be Feasible Precise Clear Motivating Distinctive It should indicate the major component of strategy It should indicate how objectives are to be accomplished

A business definition is a clear statement of the business the firm is engaged in.It answers the question :What business are we in? A clear business definition is helpful for strategic management in many ways: It indicates the choice of objectives It helps in the choice of strategies It facilitates functional policy implementation It suggests appropriate organizational structure.

Business model is concerned with the financial outcomes it produces. It is the managements products & competitive approaches that will generate a revenue stream & have a cost structure that produces attractive earnings & return on investment.

Objectives are the results or outcomes an organization wants to achieve in pursuing its basic mission. Characteristics : Objectives should be understandable Concrete & specific Should be Related to time Measurable & Controllable