Examples of Objective Statements
1. Corporate Objective Statements for XYZ Co.
Mission
To provide fashionable and affordable
merchandise and services to consumers
through stores and catalog operations.
Long-run goals
1. Improve customer perceptions of
XYZ Co. through repositioning
effort and modernization program
2. Leverage sales increases into a
higher profitability
3. Continue to make prudent
investments in the social concerns
and well-being of the communities
in which we do business
Short-run goals
1. Install electronic point of-sale
systems in all XYZ stores
2. Invest in advanced electronic
communication systems and
network technology
3. Implement new assortment
planning procedures that
permit stores to adjust to
competition and tailor
mechanized mix to customer
needs
4. Open 20 department stores
in regional shopping centre's,
25 geographic stores in
smaller markets, 25
drugstores, and 45 catalog
sales centre's.
5. Update department stores
with a more contemporary
look.
 2. Corporate Objective Statements for ABC Lumbering Co.

Mission Long-run goals Short-run goals

To grow and harvest trees and to
turn them into quality forest
products that meet peoples basic
needs for communication,
shelter, and commerce
1. Achieve the best total use
of the forest , and ensure a
perpetual wood supply
2. Produce quality products
at the lowest cost
3. Maintain conferring
competitive efficiency
4. Maintain leading edge in
research and development
5. Minimize effects of
harvesting and
manufacturing operations
on the environment and
wildlife
1. Apply latest computer
technology to mill
processes, administrative
functions, and research
2. Increase productivity and
capacity of manufacturing
facilities
3. Modernize or replace old
lumber mills.
4. Improve the efficiency of
distribution networks
5. Reduce the amount of
purchased and total energy
consumed per ton of
products
6. Use ambushing residue
materials to replace
purchased energy at pulp
and paper mills
7. Use sawmill by-products to
supply 40 percent of the
steam required
8. Balance harvest with
reforestation
 3. Corporate Objective Statements for Ethio-Telecom

Mission Long-run goals Short-run goals

To develop and furnish 1. Introduce new products and 1. Increase consolidated revenue by 20 to
products and systems that services designed to help 25 percent
satisfy our customers’ needs organizations and individuals 2. Invest 10 percent of total revenues in
and solve their problems, world wide to communicate research and development
and that display leadership in more efficiently 3. Continue development of Integrated
quality, value and 2. Expand relationships with Services Digital Network.
technology. major customers, including 4. Increase emphasis on seizing new
telephone operating markets or areas
companies, interexchange 5. Achieve improvements in cost
carriers and large competitiveness
communications users.
3. Improve competitive
position through penetration
of new markets
4. Expand research and
development facilities
 4.
Vision
The ABC College will be an
institution known for its distinctive
strengths of integrity, flexibility,
creativity, responsiveness, and risk
taking and for its commitment to
work for the common good of
society
Objective Statement for ABC College
Mission Objectives
To deliver quality and world -Bridging the gap between the
class education and to involve need and availability of quality
in research, training and Higher Education
- Carrying out educational and
consultancy by attracting the social development research
best faculty and nurture activities
intellectual capital in terms of -Production publishing and
students and ensure that they distributing books, journals,
become an asset to their magazines, and of teaching
nation in particular and the materials.
-Provision of consultancy, training
world in general. and research.
 A Summary Model of the Elements of Strategic Management

-concerned with deciding on strategy and planning how that strategy is to be into effect
-can be thought of as having three main elements within it strategic analysis, strategic choice & strategic
implementation

Values
expectations
The of objectives Resources
environment

Strategic
Analysis

Genera- Policy &

tion of decision Resource
options making, planning
strategic Strategic
management Implement-
Strategic
ation
Choice
Org.
Evaluat
Structure
-tion of
Options

Selection People &

of Strategy Systems
 Major Elements of Strategic Management

Mission:- The description of an Organizations reason for existence, its fundamental purpose

- it is the guiding principle that drives the processes goal and strategy formulation
- a pervasive, although general, expression of the philosophical objectives of the organization
- mission should focus on long-range economic potentials, attitudes toward customers (clients) product and service quality, employee relations, and
attitudes toward owners.
- it provides identity, continuity of purpose, and overall definition and should convey the following categories of information.
1.Precisely why the organization exists, its purpose, in terms of
a.) Its basic product or service
b) Its primary markets, and
c) Its major production technology
2.The moral and ethical principles that will shape the philosophy and character of the organization
3.The ethical climate within the organization.

What is Strategic Management

A sample of definitions:
• Strategic Management is the process of managing the pursuit of organizational mission while managing the relationship of the organization to its
environment (Higgins, p.3.)
• Strategic Management is that set of managerial decisions and actions that determine the long-run performance of an organization (Wheelen and Hunger,
p.3)
• Strategic Management is defined as the set of decisions and actions resulting in the formulation and implementation of strategies designed to achieve the
objectives of the organization (Pearce and Robinson, p.6)

The following definition can be considered as a synthesis of the first three and a working definition:

“ Strategic Management is the process of examining both present and future environments, formulating the organization’s
objectives [ and mission], and making, implementing, and controlling decisions focused on achieving these objectives in the
present and future environments."
Why Use Strategic Management?

- Organizations nowadays face increasingly turbulent, complex, and threatening environments;

- In the past, many organizations apparently could succeed by focusing virtually all management efforts on internal functional
considerations and running the day-today affairs of the organization as efficiently as possible.
- Although efficient internal operations are still very important, adapting the organization to changing environmental conditions has
become an essential ingredient for success.
- The strategic management perspective highlights the significance of devoting more attention to analyzing environments and
formulating strategies that relate directly to environmental conditions.
- Strategic management does not of course, reject proven management practice; it is simply a way to give appropriate emphasis to a
major responsibility of top management.
- The ultimate purpose of strategic management is to help organizations increase performance through improved effectiveness,
efficiency, and flexibility.
- The acceleration of environmental change, increasing competition for scare resources, and increasing demands from a variety of
groups and individuals have led to an increased emphasis on strategic management.
- However, it should be noted that there is no one universally accepted way to introduce and practice strategic management; since
each organization is unique and the strategic management process must fit this uniqueness, no two strategic management systems
will be exactly alike; Despite this uniqness, however, there are fundamental principles and practices that form a common thread
among successful strategic management systems.
In summary:
• Strategic Management Process provides organizations with clearer goals and direction.
• Management is forced to consider and define where the organization is to go and when the organization is to be at a specific point in
time.
• Knowing the desired results or outcomes helps both management and employees what it will take to be sicessful. This
understanding often encourages both these groups to achieve short-term performance that are better focused on the organizations
long-term welfare.
• Environmental conditions faced by organizations often change rapidly; These rapid changes can create
unexpected opportunities and threats; the strategic management approach helps management to focus on future
opportunities and threats by analyzing and forecasting both the near and distant future environments. Better
anticipation of future environments enhances management’s ability to quickly take advantage of opportunities,
fully exploit these opportunities and reduce the risk associated with environmental threats.
• The strategic management process helps relate an organization’s decision-making process to relevant
environmental conditions.
• Escalating environmental turbulence and complexity make it increasingly important for an organization to
attempt to take either a proactive or an aggressive-reactive position.
• A proactive decision involves an attempt to forecast environmental conditions and then influence or change the
forecast conditions so that the organization’s objectives can be achieved.
• An aggressive-reactive decision involves forecasting future environments and taking action to optimize the
organization’s position in that environment by avoiding expected problems and being better prepared to pursue
potential opportunities.
• Organizations that do not use strategic management are much more likely to make passive-reactive decisions
in which action is taken only after the environment has changed; although passive-reactive decisions could be
effective sometimes, strategic management, with its focus on the environments, helps an organization become
better prepared for environmental changes and control its own destiny.
• Perhaps the most important reason for using strategic management is that most research shows that
organizations using it significantly outperform their own past results, and the results of those organizations not
using strategic management, because using strategic management reduce the risk of catastrophic problems and
increases the probability of an organization’s taking advantage of environmental opportunities as they arise.
What Strategic Management Is Not
• Although strategic management has a board scope of applications, it is not a panacea
• There are several things that strategic management does not attempt to do:
- 1st it does not attempt to blueprint the future; plans cannot be cast in stone and followed into the far distant future
when the environments assumed during the planning phase have changed; rather, executives can try to foresee the
desired future for the organization and achieve stated objectives by formulating and implementing appropriate strategies and
detailed plans.
- 2nd strategic management involves more than simply forecasting outcomes and then determining what should be done to fulfill
the forecasts; more basic questions must be addressed, such as: Are we in the right direction(business)? What are our basic
objectives? Are our targets growing or eroding?
- 3rd strategic management is not a simple prescribed methodology, flow chart, or a set of procedure; it actually embraces a wide
range of specific types of planning systems and is inextricably interwoven into the entire management process.
Fig.1 Major components of the Strategic Management Model.

Analyze the Environment

Determine Mission and Objective

Feedback
Analyze and Select Strategic Alternatives

Implement the Strategies

Evaluate and Control Performance

Levels of Strategic Management

1. Corporate Strategy: defines what business or businesses the organization is in or should be in, how each business (entity)
should be conducted (that is, whether integrated with other corporate divisions or independent), and how it relates to society.
2. Business Strategy: defines how each individual business or (entity) will attempt to achieve its mission (and, therefore
contribute to achieving corporate strategy) within its chosen field of endeavor.
3. Functional Strategy: focuses on supporting the corporate and business strategies.

The following figure 1 shows that the basic elements of the strategic management process are the same at each level.

Levels & Elements of the Strategic Management Process

Corporate Level Business Level Functional Level

Information
Environmental Analysis
Produced/
Information
Determining Mission and service
Objectives level
Feedbac

Analysis and Selection of

Strategies
k

Implementation

Control