Module

2: STRATEGIC DIRECTION

CENTRAL LUZON STATE UNIVERSITY

College of Business Administration and Accountancy
Department of Business Administration
 OBJECTIVES

✓ Describe the responsibility of a strategist

✓ Discuss the Vision and its importance
✓ Define Mission and its characteristics
✓ Explain how objective operationalize the mission and its
criteria
Why do we need them?
Inspire people Guide decisions
 An individual
responsible
(most) for the
success or failure
of an
organization.
 A “massively
inspiring,
overarching, and
long term. It
represents a
destination that is
driven by and
evokes passion.
Answering the questions such as:
▪ What do we want to become?
▪ Where are we going?
▪ Why should we go there?
▪ What is winning?
It is BPI's vision to be the Philippines' premier bank that builds on its heritage of being the principal architect of the
country's financial inclusion landscape, providing the most effective, efficient, and innovative solutions for its clients
to best manage their financial needs, while creating sustainable value and shared prosperity for all stakeholders.

To be the leader in the bakeshop industry and the most loved bakeshop brand in the Philippines.

By 2020, LBC shall be the access and delivery solutions provider of choice, professionally and technologically
equipped to serve Filipino families and business entities through total customer experience.

Inspire the World, Create the Future

As an employer of choice, we will be the market leader and the proffered provider of innovative products
and solutions in Asia

Vision Statement Examples

 Identifies the
purpose of the
organization, its
basis of
competition, and
competitive
advantage
Answering the questions such as:
▪ What is our business?
▪ Whom do we do it for?
▪ How are we going to get there?
▪ What value are we bringing?
9 Components of Mission Statement

Customers

Concern for
Products/Service
Employees

Concern for
Markets
Public

Mission
Self-Concept Technology

Concern for
Philosophy
Survival
Since the bank's founding 165 years ago, BPI has been inextricably linked to the growth of the Philippine economy.
Anchoring our institution on our four-fold commitment to Clients, People, Shareholders, and Country, we aim to take
advantage of the country's good macroeconomic fundamentals by carefully and systematically overlaying scale over
some of the best financial metrics in the Philippine banking industry.

To serve great tasting food bringing the joy of eating to everyone.

Linking and bridging customers through our network and innovating new solutions to provide faster, easier, and
more cost-effective delivery solutions.

To inspire the World with innovative technologies, products and designs that enrich people`s lives
and contribute to a socially responsible, sustainable future.

We exist to enhance quality of life of our customers and contribute to the well being of our employees,
society, and environment.

Mission Statement Examples

Double Happiness Vision Statement

“To establish a commanding presence and market leadership as a food

chain servicing major bus terminal in Central Luzon within the next five
years”

Vision Statement Example

Double Happiness Mission Statement

“To provide quality good and passenger convenience services that

would generate sufficient profits for the stockholders and improve the
lives of its employees”

Mission Statement Example

Double Happiness Key Result Areas
Objectives Key Result Areas

1. To establish a strong market presence in Central
Luzon
2. To earn good financial return for its owners
1a. Number of food outlets in major bus terminals in
Central Luzon
1b. Sales volume attained
1c. Market share in Central Luzon
2a. Amount of net profits realized for the next five years

2b. Return on equity (ROE)

2c. Return on assets (ROA) or Return on
Investment (ROI)
2d. Return on sales (ROS)

Objectives Example
Double Happiness Key Result Areas
Key Result Areas Performance Indicators

1a. Number of food outlets in major bus terminals in Central 3 5 20

Luzon
P 7M P 13M P 60M
1b. Sales volume attained
1c. Market share in Central Luzon 2% 3% 12%
2a. Amount of net profits realized for the next five years P 1M P2M 10M
2b. Return on equity (ROE)
30% 40% 60%
2c. Return on assets (ROA) or Return on
Investment (ROI)
15% 20% 30%
2d. Return on sales (ROS)
14% 15% 16%

Indicators Example
Used to put
into practice the
mission
statement and
that are
specific and cover
a well-defined
time frame.
 Criteria of Effective Objectives

Specific Appropriate Timely

Measurable Realistic
 BENEFITS
OF HAVING
A CLEAR
SET OF
OBJECTIVE
1. Achieve clarity of purpose among all managers and employees.
2. Provide a basis for all other strategic planning activities.
3. Provide direction.
4. Provide a focal point for all stakeholders of the firm.
5. Resolve divergent views among managers.
6. Promote a sense of shared expectations among all managers and
employees.
7. Project a sense of worth and intent to all stakeholders.
8. Project an organized, motivated organization worthy of support.
9. Achieve higher organizational performance.
10. Achieve synergy among all managers and employees.
Module
2: STRATEGIC DIRECTION

CENTRAL LUZON STATE UNIVERSITY

College of Business Administration and Accountancy
Department of Business Administration