Business Mission &

Vision
Defining the Organization’s Mission:
An organization’s mission is an overall goal of
the organization that provides a sense of
direction and a guide to decision making for all
levels of management. One study categorized
four approaches to setting organizational
missions:
 Targeting.
 Common enemy.
 Role model.
 Internal transformation
 Contents of Mission Format:

 Target customers and markets.

 Principal products and services.
 Geographic domain.
 Core technologies.
 Concern for survival, growth and
profitability.
 Organizational self concept.
 Desired public image.
Mission and Stakeholder:

Many individuals and groups outside the

organization make decisions crucial to
organizational success. The investment
community makes judgments concerning the
level of financial support it will provide,
customers judge whether to support the
organization by purchasing goods and
services and potential employees determine
whether their individual goals will be furthered
by joining the organization. The mission of
the organization can affect these decisions.
There is little doubt that potentially valuable
supporters can be lost if they do not approve
the organization mission. It is important,
therefore, that the mission be explicitly
communicated to avoid misunderstanding of
the fundamental purpose of the organization.
Changing the Mission:

An organization’s mission must not only be

defined at its inception but also must be
reexamined regularly. Several factors can
signal a need for a reexamination:
declining profits and market share,
changes in competitive position or top level
management personnel, new technologies,
decreased availability or increased cost of
resources and changes in market
demographics, government regulations, or
consumer demand. Often the need for a
change in mission is sensed by top
management in vague or undefined terms
(i.e, things simply do not seem to be going
right). Top managers skill in recognizing
the need for a change in mission and their
ability to clearly delineate the new mission
play a significant role in the future success
of the organization
The Three Elements of a Strategic
Vision:

1.The mission statement :

a) The mission is not to make a profit.
b) Incorporating some questions like what,
how, who, when, why in to the mission
statement.
c) A broad or narrow business definition
and mission and
d) Mission statement for functional
departments.
2.From mission statement to
strategic vision:
a) Nature of strategic changes.
b) Satisfaction of customers needs.
c) Concentration of buyer segments.
d) Future location of market.
e) Company’s business make up look for
next few years.
f) The future expected position of the
company.
 3.Communicating the strategic
vision :
This can be possible in the following ways :
a) Braking down resistance
b) Putting the vision statement in writing
and
c) The real payoffs of a well conceived and
explained version statement
 Managers Role In Forming a
Strategic Vision :

• Coming up with a mission statement that

defines what business the company is
presently in and conveys the essence of
"who we are, what we do, and where we
are now".
• Using the mission statement as a basis for
deciding on a long-term course, making
choice about "where we are going," and
charting a strategic path for the company to
pursue.
• Communicating the strategic vision in
clear, exciting terms that arouse
organization commitment.
Strategy & Financial Objectives of
a Company:

# Financial Objectives &

# Strategic Objectives
 Strategic objectives:
 A bigger market share
 A higher, more secure industry rank
 Higher product quality
 Lower costs relative to key competitors
 Broader or more attractive product line
 A stronger reputation with customers
 Superior customer service
 Recognition as a leader in technology &/ or
product innovation
 Increased ability to compete in international
markets
 Expanded growth opportunities
 Total customer satisfaction
 Financial 0biectives:
 Faster revenue growth
 Faster earning growth
 Higher dividends
 Wider profit margins
 Higher returns on invested capital
 Stronger bond & credit ratings
 Bigger cash flows
 A rising stock price
 Recognition as a "blue chip" company
 Amore diversified revenue base
 Stable earnings during reversionary periods.
 The Factors That Shape a
Company's Strategy:

1. Societal, Political, Regulatory, and

Citizenship Considerations
2. Competitive Conditions and Overall
Industry Attractiveness
3. The Company's Market Opportunities
and External Threats
4. Company Resource Strengths,
Competencies, and Competitive
Capabilities
5. The Personal Ambitions, Business
Philosophies, and Ethical Beliefs of
Managers
6. The Influence of Shared Values and
Company Culture on Strategy
Economic Competitive condition Company opportunities
Societal and over all industry and threats to the
Political attractiveness company’s well being
Regulatory and
Community
Citizenship
Consideration

The mix of considerations that Conclusions identification Crafting a

determines a company’s concerning how and strategy
strategic situation internal and evaluation of that fits the
external factors strategy overall
stack up : their alternatives situation
implications for
strategy

Company
resources Personal ambitions, Shared
strength business values and
weakness, philosophies, and company
competitive ethical principles of culture
capabilities key executives