VISION, MISSION AND OBJECTIVES OF BUSINESS *Shanmukha Rao. Padala **Dr. N. V.S.

Suryanarayana

INTRODUCTION: The leveraging of a firm's internal resources, capabilities and core competencies to accomplish the firm's vision, mission and objectives in a competitive environment is µStrategic Intent'. It is about winning competition battles and gaining leadership position by putting organizational resources to best use. When established effectively, a strategic intent can cause people to turn out excellent performance. Strategic intent is said to exist when all employees and levels of a firm are committed to the pursuit of a specific but significant performance target. The intent can take the form of a broad vision or mission statement or a more focused route covering specific objectives and goals. In a way, thus, strategic intent tries to establish the parameters that shape the values, motives and actions of people throughout their organization. Based on the Strategic Intent is the organizations provide products and services for consumers, profits for investors, jobs for employees, taxes for governments, and economic stability for the communities. Strategic intent also identifies the commitment of the oraganisation to contribute to the welfare of society by setting standards on being economically productive and socially responsible. The goals identified through the strategic intent of the organization represent a synthesis and demands placed on the organization by its stakeholders these choices, collectively, set apart the organization from others. The most important characteristics of successful organizations are their clarity of purpose, adherence to their core values, their distinct identity and their vision of the organization. In practice there will always be limits on the range of possible choices. Small enterprises tend to be limited by their resources, whereas large enterprises may find their range of choice limited because it is difficult to change quickly and therefore, they tend to be constrained by their past. In the public sector, strategic choices may be made at a political level and the role of the manager may be limited to devising best to implement strategies rather than on fundamental choices of future direction. Wherever may be the limitations on choices, organizations have to co-exist in competitive markets by contributing to economic progress by creating new value to society, each organization doing so in its own way. Strategic analysis, strategic choice and strategy implementation are the three parts of the Strategic Management. Strategic choice is concerned with decisions about the organisation's future and the way it needs to respond to the influences and impacts identified in strategic analysis. Choice becomes an idle exercise if the strategy is not properly implemented. These three divisions, therefore, form a closed loop in which the tail and the head are often indistinguishable. We will generally follow the conventional framework based on these divisions. However, for pedagogical simplicity, in this chapter, we will begin our foray into hard-core strategic

That end is the vision of an organization or an individual. We will establish ourselves as a supplier of choice by delighting our customers with our service and our products. expressed as strategic intent. Or some others among you would like to believe that you will be an entrepreneur in 10-15 years owning your own company dealing with IT services and employing cutting-edge technology to serve a global clientele. knowledge-based and happy organization. articulates the position that a firm would like to attain in the distant future. y y y y A broad vision of what the organization should be. In the coming decade. For instance. Witness what Tata Steel sys about its vision: µTata Steel enters the new millennium with the confidence of a learning. They are beginning points for any formal planning process. A firm thinks like that too. we will become the most cost competitive steel plant and so serve the community and the nation'. but they also provide the sense of direction necessary to assure that incremental behaviour culminates in overall progress.through strategic intent is considered to be a past of strategic choice. It is what the firm or a person would ultimately like to become. would like to become general managers managing an SBU in a large. We will start with the vision. the vision encapsulates the basic strategic intent. VISION: Aspirations. If different organizations do not have differences in their vision and goals. . The organization's mission The strategic objectives and specific goals to be pursued relentlessly The plans that are developed to accomplish the intentions of management in a concrete way. otherwise they would just be castles in the air. lofty ideals and clear-cut ideas that serve to unify the energy and forces scattered throughout an organization.management by discussing strategic intent. therefore. These concepts are at the core of the strategy of managements. THE HIERARCHY OF STRATEGIC INTENT: We will discuss these parameters as a hierarchy of strategic intent. The hierarchy of strategic intent includes the following elements. mission and objectives as well as value statements. or may be even earlier. Seen from this perspective. Strategic intent is said to have expressed effectively when people believe fervently in their products and industry and when they are focused totally on their firm's ability to outperform its competitors. some of you. A vision. say in 10 years. should lead to an end. The elements of the hierarchy specify the pious intentions. diversified multinational corporation. there is going to be significant difference between organizations.

Sometimes it is not even evident to the entrepreneur who usually thinks of the vision. aspires to create within a broad time horizon and the underlying conditions for the actualization of this perception". backwards and forwards in history. Vision is the motivator in an organization. just one thing has fired the imaginations of the people: a vision of future that promises to right today's wrongs. hope against despair. 1. Moses used the vision of a land mark of milk and honey to motivate his people to set off for the promised land. impoverishment will have disappeared. Walt Disney probably wanted to make people happy. El-Namaki considers it as a "mental perception of the kind of environment an individual. By its nature. Miller and Dess view it simply as the "category of intentions that are broad. Vision is developed through sharing across an organization: Famous stories of successful vision involve visions that have been widely shared across entire . Indian's freedom fighters used the vision of a country free of its colonial rulers to wrest independence. And it is from the actions that a vision could often be derived. 3. Kotter defines it as a "description of somethings (an organization. Defining Vision: Vision has been defined in several different ways. This is the reason why it is difficult to say what vision an organization has. or an organization. It needs to be meaningful with a long term perspective so that it can motivate people even when the organization is facing discouraging odds. 2. all inclusive. a technology. and unity of purpose amidst diversity of personal causes. Yet it is a powerful motivator to action.Understanding Vision: A vision is more dreamt of than it is articulated. and forward thinking". Henry Ford wished to democratize the automobile when the visualized that an affordable vehicle could be available for the masses. it could be as hazy and vague as a dream that one experienced the previous night and is not recall perfectly in broad daylight. In the corporate context. The common strand of thought evident in these definitions and several others available in strategic management literature relates to µvision' being future aspirations that lead to an inspiration to be the best in one's field of activity. CHARACTERISTICS OF VISION: 1. Vision is what keeps the organization moving forward. corporate culture. an activity) in the future". a graphic image of a time when injustice. a business. The world over. offering clarity amidst confusion. vision refers to an inspirational picture of a future that can be created.

Jr. When visioning the change. a step function and a jump ahead so that the company knows what it is to be. Good visions are competitive. Good visions foster long-term thinking. That famous speech is a dramatic example of the power that can be generated by a compelling vision of the future. A vision is a guide to implementing strategy. Martin Luther King. Visions represent a discontinuity. Change Agents: Leaders must recognize the complexity of changing an outmoded vision to reflect new realities. "I have a dream. Visions are about feelings. visioning comes first. . Good visions foster risk-taking and experimentation. Methods of convincing the others about vision: The leaders by working hard along with others convince the others in the organizations rather than simply by delivering speeches. original and unique. emotions and pictures. Of course. 3. said. VISION STATEMENT: When you begin the process of strategic planning. Good visions represent integrity." and what followed was a vision that changed a nation. It is an important requirement for building a strong foundation. When all the employees are committed to the firm's visions and goals. ask yourself.organizations. 2. beliefs. "what is our preferred future?" Your vision must be encompassed by your beliefs. "What will success look like?" The pursuit of this image of success is what motivates people to work together. often a founder has a powerful impact on the others. y Your beliefs must meet your organizational goals as well as community goals. Here is what they say: y y y y y y y Good visions are inspiring and exhilarating. They make sense in the marketplace as they are practical. Organizations must redefine themselves through updated visions of the future through new objectives and strategies. A vision statement answers the question. THE BENEFITS OF HAVING A VISION: Parikh and Neubauer point out that several benefits accruing to an organization having a vision. Good visions help in the creation of a common identity and a shared sense of purpose. they are truly genuine and can be used for the benefit of people. an individual leader. optimum choices on business decisions are more likely.

CREATING A SHARED VISION: . Crompton Greaves. Sony's vision rests on the values of encouraging individual creativity and its determination to be a pioneer. Such core values reflect how you want your future to look. we know that 3M's purpose is to solve problems innovatively. Encourages openness to unique and creative solutions. to make the organization highly competitive with growth and profits as the rewards. Blue Star wants to provide world class engineering products and services. Unstructured inputs could be taken from everyone developing the corporate vision. Elicit ideas from employees as to how their dream organization should be like in terms of characteristics. because Visioning: y y y y y y y y y y Break you out of boundary thinking. Gujarat Heavy Chemicals typically follow certain steps in this regard: 1. Your beliefs are a key component of strategic planning. BUILDING A VISION: The vision statement should be build around certain core values. and actions of all. Your beliefs must be precise and practical.y y y y y y Your beliefs are a statement of your values. Results in efficiency and productivity. Values. For example. Promotes interest and commitment. Thus. it's their shared values that will prevent them from going in different directions. 2. Provides continuity and avoids the stutter effect of planning fit and starts. Nike wants to provide the experience and emotion of competition ± winning and crushing competitors. The foresight of the organization is to fit the strengths of the organization with the demands. Your beliefs are a public/visible declaration of your expected outcomes. philosophy. Encourages and builds confidence. Companies like Larsen & Toubro.irrespective of what happens in and around the organization. Your beliefs reflect the knowledge. Your beliefs will guide the actions of all involved. the timeless principles to be followed while running the show. The long-term benefits are substantial. Promotes laser-like focus. Builds loyalty through involvement (ownership). The process and outcomes of visioning is to develop an effectivce basis for business strategy. Alerts stakeholders to needed change. The vision statement should also spell out the core purpose of an organization very clearly. Since a company's different business may need to operate with different strategies. are the essential glue of vision. Combine these with the company's core values and purpose to build the vision statement. thus. Identifies direction and purpose.

Thus.' The organizations should protect this legitimacy over the long-run. MISSION: Organization. takes resources from the environment and converts the resources into goods and/or services. Mission is a statement which defines the role that an organization plays in a society.Most managers. It refers to the particular needs of that society for instance. The definition of mission has gradually expanded to represent a concept that embodies the purpose behind the existence of an organization. owned and lived by every single person in the company. and that purpose or mission is clear that start. the basic goals. characteristics and philosophies that will shape a firm's strategic posture must be determined. management must search for new purpose or new state the mission or restate the original mission. company mission will guide future executive action. technology. They do this in terms of their mission. now-a-days. meaning that individuals from across the organization have a common mental image and a mutually supported set of aspirations that serve to unite their efforts. Thus. The original mission or purpose may become irrelevant in the long-run due to changes in internal environment of the organization and/or appropriate external environment. People at all levels must share a common inspirational image that compels them to give their best and realize their own dreams. The vision once finalized. As time passes. consumer preferences and other environmental factors change. being shared. must be injected into the veins of the organization. the firm's produces new products or renders new services and the interest of the management and employees change. It supplies the goods and services to the environment at an acceptable price. whether it is a business or a social organization. or university or government organization. The organizations which make a net contribution to the society are called µlegitimate. This results in significant change in the firm. A book publisher may aim at producing excellent reading material while a magazine editor may strive to present news analysis in a balanced and unbiased manner. Whether developing a new business or reformulating direction for an ongoing company. its information needs. every organization comes into being and exists to accomplish something in the larger environment. When these changes take place. Definitions: A mission was earlier considered as the scope of the business activities a firm pursues. Both have different objectives but an identical mission. talk about a shared vision. Understanding Mission: Organizations relate their existence to satisfying a particular need of the society. . A book publisher and a magazine editor are both engaged in satisfying the information needs of society but they do it through different means.

It is the guiding star for any firm. By providing tax relief under Sec 88c. devotion and enthusiasm. market and technological areas of emphasis for the business. When HCL defines its mission as µto be a world class competitor' it creates a unique place in the minds of Indian personal computer users who across personal computers of MNCs on most of the occasions. 1. indicates the principal product or service areas and primary customer needs the company will attempt to satisfy. So customer service has become a value and it is inspiring and motivating the postal employees. UTI declared its mission as "to encourage saving and investment habits among common man". The mission provides direction to insiders and outsiders on what the firm stands for. The mission should be unique. It indicates that IOC is going to adopt diversification strategy in future. and the customers it seeks to serve and satisfy. An effective mission statement should possess the following characterstics. 4. According to John Pearce "mission is an enduring statement of purpose that distinguishes one firm from other similar firms". Hereby common man's savings habit is encouraged by UTI. Clear: A mission statement should lead to action. the investment upto 1lakh in UTI is exampled from income tax. 2. CHARACTERISTICS OF A MISSION: A mission statement incorporates the basic business purpose and the reason for its existence by rendering some valuable functions for the society. .Company mission can be defined as the fundamental. BSNL'S mission of µconnecting India' leads it to a variety of service with varied tariff structure so as to cater to the preferences of mobile phone users. concerning particularly why it is in existence. Feasible: The mission should be realistic and achievable. unique purpose that sets a business apart from other firms of its type and identifies the scope of its operations in product and market term. Indicates major components of strategy: "The mission statement of IOC emphasizes petroleum refining. 3. Thompson defines mission as the "essential purpose of the organization. 1. 5. Precise: A mission statement should not be narrow or too broad. the mission describes the product. reflects the firm's self-concept. It embodies the business philosophy of strategic decision-makers. the nature of the business it is in. implies the image the company seeks to project. 6. Motivating: The mission should be motivating for the employees to be inspired for action. In short. For example India Post's mission is to expectations of the customer' with dedication." 2. marketing and transportation with international standards and modern technology. Distinctive: A mission statement will indicate the major components of the strategy to be adopted. 3. For instance. Hunger and Wheelen say that mission is the "purpose or reason for the organization's existence".

Belief that hard-work and the support of others. To serve as a focal point for those who can identify with the organisation's purpose and direction. for allocating organisational resources. Belief that the management philosophy of the business will result in a favorable public image. FORMULATING A MISSION: The process of defining the mission for a specific business can be understood by thinking about a firm at its inception. To facilitate the translation of objectives and goals into a work structure involving the assignment of tasks. Belief that the technology to be used will provide a product that its cost and quality competitive. To develop a basis. Belief that the product or service can satisfy a customer need currently not met adequately for specific market segments. The sense of mission is usually based on several fundamental elements. outlook and orientation rather than of details and measurable targets. y y y y y y To provide a basis for motivating the use of the organisations resources. Even the most exciting vision will remain only a dream unless it is followed up with striving. It is a statement of attitude. MISSION STATEMENTS: Vision is the critical focal point and beginning to high performance. To establish a general tone or organisational climate. and To specify organisational purposes and the translation of these purposes into goals. building. the business can grow and be profitable. Belief that the entrepreneur's self concept can be communicated and adopted by employees and shareholders. To ensure unanimity of purpose within the organisation. only broadly outlines or implied objectives and strategies. or standard.NEED FOR AN EXPLICIT MISSION: The mission contains few specific directives. and improving. . But obviously a vision alone won't make it happen. y y y y y y Belief that the product or service can provide benefits at least equal to its price.

Clearly articulating your strategic intent is the key. the new products and services may have similar technologies. "What business are we in?". and values. but they often find it difficult to arrive at a consensus on issues concerning mission. It should arouse a strong sense of organizational identity and business purpose. The mission statements are the organization apart from others. Vision and Mission hold an organization together. . Your mission statement must be specific to the organization. Unfortunately. They give meaning to the reason for being. It's important to recognize and respect diverse approaches to questions of ultimate purpose in a group. or may have similar competencies. they don't come neatly packaged in separate mental compartments. PREPARATION OF VISION AND MISSION STATEMENTS: In a competitive economy driven by the cruel logic of markets. the implications of making a definitive identification means that the organization has put boundaries around to give guidance to the strategic direction in which it will move. As with vision and values. mission. For example the question. Ideally. a company with a determined management can transform an organization much more quickly and much more effectively than in the past. the senior management team defines the broad parameters of what business we're in and which direction were heading. Your mission statement must be orientated and portray your organization as it will be. they are linked in people's hearts and minds. Most people can relate to a personal vision. We need to answer them to prepare a mission statement. and vision of the group. their personal values and their mission in life. If the areas are to be related it puts limits on the options. they are not so simple. the mission should have clear answer to the above questions. It provides directions on the strategic choice in diversification strategies. values. group members then exchange ideas and make decisions to articulate the vision. or may be serving similar markets. as if it already exists. They deal with the deeper motivations and assumptions underlying the values and purpose and function. The diversification options may be related in a number of different ways. Instead. value-add. Through some of these questions often seem deceptively simple. The mission statement has direct implications on the diversification strategy of the organization.Why does the organization exist? What is its value addition? What's its function? How does it want to be positioned in the market and minds of customers? What business it in? These are all questions of purpose. as it will be. Your mission statement must focus on one common purpose. They can prepare a rough vision for input and refinement or leave things wide open for the rest of the organization to fill in. y y y y Your mission statement draws on your belief statements. and define the business of the organization. not generic.

normally of less than one-year duration. Goals and targets are more precise and expressed in specific terms. 4. are time-bound and work-oriented. Goals have the following features they: 1. but the chances of doing so are greater if the objectives are framed and understood properly. They are stated in precisae terms as quantitatively as possible. Long-range objectives specify the results that are desired in pursuing the organisation's mission and normally extended beyond the current financial year of the organization. offer a standard for measuring performance. Again. Everyone should be a µstakeholder' in spirit. Departmental objectives. objectives determine the scope of future events. are expressed in concrete terms. purpose and program of the organization. Lon-range objectives are notably speculative for distant years. mission and values may seem foolish or even alarming but organizations are strongest when many aptitudes. after a little exploration often reveals real differences on issues about governance. that are used by management to achieve the organisation's long-range objectives. There are many ways in which the vision statement can be prepared. It depends on the nature and type of organization as well as the philosophy and management style of the top management. 3. An objective indicates the result that the organization expects to achieve in the long run. They serve as reference points to concentrate resources and efforts. the end point. Achievement of the organizational objectives. OBJECTIVES: The accomplishment of purpose or mission of an organization requires the formulation of a number of objectives. What organizations describe as µpersonality conflicts'. finances. but it can start in any part of an organization. The selections of short-range objectives are from an evaluation of priorities relating to long-range objectives. The emphasis in goals is on measurement of progress toward the attainment of objectives. both long-range and short-range are formulated based on the respective long-range and short-range objectives of the organization. in turn. often are conflicts in perceptions. interests. something that you aim for and try to reach. The vision and mission statements should provide clarity to the issues of governance. It is an end result. They provide the spotlight on the routes over which activities are organized. Objectives are the products of specific concrete thinking. 2. They commit persons and organizations to verifiable accomplishments. . requires the formulation and fulfillment of departmental and unit goals. short-range objective are performance targets. are derived from objectives. In this section we will refer to only objectives assuming that these include the goals as well. They determine what action to take today to obtain results tomorrow. However. Teams or organizations need a shared vision.Different ways of identifying a group's vision. not something that only a few people own. That's usually a cascading process. and points-of-view can worked out together. Unit objectives are generally specific and are draw from the departmental objectives. It is a desired result towards which behaviour is directed in an organization. The organization may or may not reach the desired state.

It may be catastrophic". promotion managers. as rightly pointed out by Koontz . Objectives Form a Hierarchy: In many organizations objectives are structured in a hierarchy of importance. This objective can be broken down into a group of objectives for the product. the marketing division may have the objective of sale and distribution of produicts. An organization's mission statement will be just window-dressing. Thus. "It is bad enough when goals do not support and interlock with one another. They all require painstaking definitions and close analysis if they are to be useful separately and profitable as a whole. They interrelated and inter-dependent. objective formulation is a critical step in the strategic management process. Because. The hierarchy of objectives is a graded series in which an organisation's goals are supported by each succeeding managerial level down to the level of the individual. They must also contain a deadline for achievement. 3. CHARACTERISTICS OF OBJECTIVES: Objectives have the following features: 1. the process and the person who is responsible for the achievement of the objective. Objectives represent a managerial commitment to achieve specified results in a specified period. goals are likely to be multiple. it is translated into measurable and specific performance targets and managers are pressured to achieve these targets. 2. of time. the time period. Hence no work should be undertaken unless it contributes to the overall goal. It is viewed that. If the various objectives in an organization do not support one another. At every level in the hierarchy. The clearly spell out the quantity and quality of performance to be achieved.FORMULATING OBJECTIVES: The mission and directional course are converted into designated performance outcomes in the process of formulating objectives. Objectives Form a Network: Objectives interlock in a network fashion. reach. unless. Managers have to trade off among the conflicting objectives and see that the components of the network fit one another. The concept of network of objectives implies that once objectives are established for every department and every individual in an organization. There are objectives within objectives. whose managers formulate objectives for each key result area and then actively pursue actions to achieve their performance targets will outperform the companies whose managers operate with hopes and more good intentions. Each operation has a simple objective which must fit in and add to the final objective. Multiplicity of Objectives: Organisations pursue multifarious objectives. For example. advertising. these subsidiary objectives should contribute to meet the objectives of the total organization. The objectives of each unit contribute to the objectives of the next higher unit. . Performance objectives must be stated in quantifiable or measurable terms. people may pursue goals that may be good for their own function but may be detrimental to the company as a whole.

checking population growth through birth control etc. This may be due to the fact that the enterprise has to meet internal as well as external challenges effectively. It turns out that there are several goals involved. organizations generally pursue multiple objectives. In order to remain viable. and social responsibility. Similarly goals can be set for other marketing managers. For example. create a favourable image of the product in the market. customers etc. Moreover. The following are the areas of objectives. Short-range objectives (one-year goals) and medium-range objectives (two to five year period goals). no single objective would place the organization on a path of prosperity and progress in the long run. attainable goals. organizations those use fewer resources to produce specified levels of products are said to be more productive than organizations those require more resources to produce at the same level. AREAS OF OBJECTIVES: Objectives are set for all areas and departments of an organization. They are abstractions of the entire hierarchy of objectives of the organization. Long and Short-range Objectives: organizational objectives are usually related to time. External problems may be posed by government. reflect immediate. which reflect certain µideals' the government wishes to accomplish in the long run. Innovation: Any change made to improve methods of conducting organizational business. Markets: Objectives are expressed in terms of the market or total rupee sales or total quantity of sales. Internal problems may hover around profitability. 2. 4. survival. every organization needs to set goals in all three time periods. 3.The advertising manager's goals may include: designing product messages carefully. In order to meet the conflicting from various internal and external groups. To describe a single. . Thus. Productivity: The level of goods and/or services produced by an organization relative to the resources used in the production process. That is why goal setting is called a "synergistic process". stockholders. Organizational objectives should indicate innovations the organization desires to implement. specific goal of an organization is to say very little about it. employee needs and welfare. an so on. The short-range and medium-range objectives are the means for achieving long-term goals and the long-term goals supply a framework within which the lower level goals are designed. 1. Long-range objectives extending over five or more years are the ultimate or dream objectives for organization. planning in India has got objectives like eradication of poverty. all these goals reinforce each other in such a way that the total result is greater than the sum of the efforts taken individually. growth. they can be broadly divided into: profitability. etc. service to customers. society. For example. to increase freight traffic (commercial) to 85 % in 199798 and reduce the freight traffic (military) to 15% in 1997-98 from 60% and 40% respectively in 1996-97 financial year of Railways. Through the objectives can vary widely from one organization to another organization.

Today. Employee Performance and Attitude: These objectives are related to the development of skills. Objectives help to define the organization in its environment: The organizations justify their existence to their stakeholders in the environment like customers. The significance of these considerations should be stressed through the formulation of organizational objectives. units of production and other measures. to increase return on investment by 10 % in 1997-98 over 1996-97 financial year. 8. Social Responsibility: These objectives are related to the obligation of business towards the society with a view to contribute to its welfare. creditors and society at large. 10. earning per share. profit to sales etc. promptly attending to the customer complaints. Manager Performance and Development: these objectives are related to the quality and rate of development of managerial skills. knowledge and performance of non-managerial employees of the company. This area is also related to the development of favourable attitude of the employees towards the organization. 9. fixed costs. 1. For example. 6. 2. these objectives have become common to all the companies. IMPORTANCE OF OBJECTIVES: Why do organizations formulate objectives? And what is their importance? The following four factors explain the need for and importance of objectives. Product: These objectives are expressed in terms of sales and profitability by product line or product. 5. working capital. Organisation Structure and Activities: These objectives are stated in term of changes to be made in the policies of organization structure or projects to be undertaken. dividend payments and collection periods. return on investment. package and the like. Customer Service: These objectives are related to the quality of the product. new issues of common stock. Objectives help in coordinating decisions and decision-maker: Stated objectives impose some constraints on the employees and modify it towards the desirable direction.4. Development of managerial performance is very important from the view point of the long-run success of the company and achievement of the other objectives of the company. Physical Facilities: These objectives are expressed in terms of machinery and equipment. delivery times. 12. cash flow. 7. target dates for development of new products and others. For example. price. Profitability: profitability objectives are expressed in terms of profits. It coordinates decision-making process by different employees. 11. government. knowledge and performance. to contribute to the medical facilities of the community where the company is located. . pre-sales and post-sales service. Financial Resources: These objectives are expressed in terms of the capital structure. square feet.

philosophies and aspirations. The corporate vision has the potential power to focus the collective energy of insiders and to give outsiders a better idea of what an organization really is. Vision is what keeps the organization moving forward. A mission statement is a declaration of an organization's reason of being. Objectives provide standards for assessing organizational performance: Objectives provide not only the direction to move to the organization but also provide the ultimate goals and targets that the organization is expected to achieve. Based on the time objectives are classified into longrange objectives and short-range objectives. normally of less than one-year's duration. history of the organization. . Mission is an enduring statement of purpose that distinguishes one organization from other similar organization. capabilities and core competencies to accomplish the firm's vision. Objectives help in formulating strategies: Mission statements are translated into objectives and objectives are the basis for formulating strategies. without clear objectives will not have basis for evaluating their performance or success. These targets and goals become the standards to judge the organizational performance. departmental objectives as well as unit level objectives. Organization do exist to satisfy a particular need of the society or to fulfill a particular deficiency in the society. the guide organizational action. organization's distinctive competencies and the organization's environment. Organizations. Objectives represent a managerial commitment to achieve specified results in a specified period of time.3. mission and objectives in a competitive environment. Short-range objectives are performance targets. Long-range objectives are notably speculative for distant years. SUMMARY: Strategic Intent is the leveraging of a firm's internal resources. 4. Management must take into account three key elements in developing mission statements viz. The accomplishment of purpose or mission of an organization requires the formulation of objectives.. The vision statements present the values. These objectives are classified into overall organizational objectives.