Charting a Company’s

Direction Its Vision,

Mission, Objectives,
and Strategy

Nama : Yuyun Khatirina

NIM :01044882326004
Prodi : PPAk
Learning Objectives
LO 1
Why it is critical for company managers to have a clear strategic vision of
where a company needs to head.
LO 2
The importance of setting both strategic and financial objectives.
LO 3
Why the strategic initiatives taken at various organizational levels must be
tightly coordinated to achieve companywide performance targets.
LO 4
What a company must do to achieve operating excellence and to execute its
strategy proficiently.
LO 5
The role and responsibility of a company’s board of directors in overseeing
the strategic management process.
 LO 1
“A strategic vision describes management’s
aspirations for the company’s future and the
course and direction charted to achieve them.”

A strategic vision portrays a company’s

aspirations for its future (“where we are going”).

whereas a company’s mission describes the scope and

purpose of its present business (“who we are, what we
do, and why we are here”).
 LO 2
“Objectives are an organization’s performance
targets—the specific results management wants to
achieve.”

• 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.
 LO 3
“In most companies, crafting and executing
strategy is a collaborative team effort in which
every manager has a role for the area he or she
heads; it is rarely something that only high- level
managers do.”
• The larger and more diverse the operations of an
enterprise, the more points of strategic initiative it
has and the more levels of management that have
a significant strategy-making role.

• Corporate strategy establishes an overall game

plan for managing a set of businesses in a
diversified, multibusiness company.

• Business strategy is primarily concerned with

strengthening the company’s market position and
building competitive advantage in a single-business
company or in a single business unit of a diversified
multibusiness corporation.
 LO 4

“A company’s vision, mission,

objectives, strategy, and approach to
strategy execution are never final;
reviewing whether and when to make
revisions is an ongoing process.”
 LO 5

Effective corporate governance

requires the board of directors to
oversee the company’s strategic
direction, evaluate its senior
executives, handle executive
compensation, and oversee financial
reporting practices.
 Illustration Capsule 2.4
Corporate Governance Failures at Volkswagen
In what ways did the board of directors sidestep its obl1gations to protect
shareholder interests?

• Volkswagen's supervisory board is unwilling to

accept any responsibility. although management
is involved in approving the use of cheating
devices.

• Some board members even questioned whether it

was the board’s responsibility to be aware of such
problems, stating “matters of technical expertise
were not for us” and “the scandal had nothing,
not one iota, to do with the advisory board.”
 Illustration Capsule 2.4
Corporate Governance Failures at Volkswagen
In what ways did the board of directors sidestep its obl1gations to protect
shareholder interests? Lanjutan…..

• The key feature of Volkswagen’s board that

appears
to have led to these issues is a lack of
independent
directors. However, before explaining this in more
detail
it is important to understand the German
governance
model.

• VW also has a unique ownership structure where a

single family, Porsche, controls more than 50
percent of voting shares. Piëch, a family member
and chair until 2015, forced out CEOs and installed
unqualified family members on the board, such as
his former nanny and current wife. He also pushed
out independent-minded board members, such as
Gerhard Cromme, author of Germany’s corporate
governance code.
 Illustration Capsule 2.4
Corporate Governance Failures at Volkswagen
(How could Volkswagen better select its board of directors to avoid mistakes such as
the emissions scandal in 2015?)

•To avoid mis takes such as as the emmision scandal

2015 VW must implement good corporate governance
like German corporations operate two-tier governance
structures, with a management board, and a separate
supervisory board that does not contain any current
executives.

•One of the principles of good corporate governance

is independence, namely a situation where the
company is managed professionally without conflicts
of interest and influence/pressure from any party that
is not in accordance with statutory regulations and
healthy corporate principles.
Terima Kasih