LEADING THE PROCESS OF

STRATEGIC MANAGEMENT :
STRATEGIC VISION,
MISSION AND OBJECTIVES
Chapter-1
Strategic Vision
Concept
A strategic vision describes the route a
company intends to take in developing and
strengthening its business. – Thompson Jr.,
Strickland and Gamble (2014).
Vision refers to the category of intentions that
are broad, all-inclusive, and forward
thinking.- Miller and Dess (2000).
https://
qsstudy.com/business-studies/why-strategic-visio
Strategic Vision
Visions are personal dreams of the
entrepreneurs about their venture.
A vision must have ‘mojo’, an appeal to the
emotions and aspirations of the people that
usually goes beyond the casual carrots and
sticks.
Note
A well –chosen strategic vision prepares a
company of the future.
Characteristics of Effectively worded Vision
Statement
1. Delineates management’s aspirations for the
business, providing a panoramic view of ‘where we
are going’.
2. Distinctive and specific instead of generic and
feel-good statement.
3. Communicates stakeholders the clearly
articulated strategic vision.
4. Forward-looking , must say something definite
about the company’s future product/market/
customer/technology focus.
Characteristics of Effectively worded Vision
Statement
5. Illuminates particular direction ,charts a
strategic path and molds organizational identity.
6. Flexible to adapt with changes.
7. Feasible to attain within the capacity and
prospects.
8. Provides managers with a reference point
for making strategic decisions and preparing the
company for the future.
9. Crisp
Common shortcomings in Vision Statements
1. Vague and incomplete.
2. Not forward –looking.
3. Too broad.
4. Bland or uninspiring.(lacks the power
of motivating people.)
5. Not distinctive.
6. Too reliant on superlatives. (best,
most successful, global or worldwide
leader).
Vision Examples
To be the market leader.
To be the first choice of customers.
To be the most innovative.
Communicating the Strategic Vision
Expressing essence of the vision in a
slogan that is catchy and easily
rememberable slogan.
Immediate incorporation of changes in
external environment in ephemeral terms
about the new direction of the company.
Frame a new strategic vision in a
compelling rationale to break down
resistance to new vision.
Benefits of a Clear Vision Statement
1. Crystallizes management views about the firm’s
long-term directions.
2. Reduces the risk of rudderless decision making.
3. Acts as a tool for winning the support of
organizational members from internal changes that
will help make the vision a reality.
4. Provides a beacon /lighthouse for lower-level
managers
5. Helps an organization prepare for the future.
6. Motivates employees to go all out.
Mission
1. A mission statement refers to an
enterprise’s description of its present
business and why it exists. - Thompson
Jr., Strickland and Gamble (2014).
https://cpdonline.co.uk/knowledge-base/b
usiness/what-is-a-mission-statement
/
2. A mission statement defines the basic
reasons for the existence of an organization
and helps legitimize its functions in the
Mission
Missions conveys to the people and society
–

Who we are.
What we do.
Why we are here.
Contents of Mission Statement
Target customers
Products and services.
Geographical domain.
Core technologies.
Concern for survival, growth and profitability.
Organizational self concept.
Desired public image.
Approach to please customers.
Relationship between Vision and Mission
Mission is set under the umbrella of vision.
Vision gives future strategic course and
mission states present business scope
and purposes that leads to future.
Vision describes the dream of
entrepreneurs and mission translate that
dream to the people and society to get social
legitimacy for the business.
Links of vision/mission with
company values
A company’s values are the beliefs,
traits, and behavioural norms that
company personnel are expected to
display in conducting the company’s
business and pursuing its strategic
vision and strategy.
Values, good or bad, exist in every
organization.
Links of vision/mission with company
values
Values are related to fair treatment,
integrity, ethical behaviour, innovation,
teamwork, superior customer service,
social responsibility, top quality, and
community citizenship.
Values become the company’s genetic
makeup, its DNA.
Links of vision/mission with company values
Values connects managers with
the pursuit of the strategic vision
and mission by making a match
between them.
Values complement and support
the vision and mission by aligning
those with the values.
Objectives
Objectives are the operational
definitions of strategic vision and
mission that describes results and
outcomes the company’s management
wants to achieve.
Qualities of a good objective
Quantifiable/Measurable.
Acceptable.
Flexible.
Understandable.
Achievable.
Having deadlines/timeframe.
Motivating.
https://www.preservearticles.com/business/8-most-
important-features-of-business-objectives/30416
Objectives : What objectives do

Yardsticks for tracking a company’s performance

and progress.
https://bbamantra.com/objective-setting/
A tool for utilizing the full potential and for
delivering the best possible results.

Specific and concrete guidelines, directions, and

targets to the people for immediate /short-term
ends.
Kinds of Objectives
1. Financial Objectives
2. Strategic Objectives . These objectives
indicate the target outcomes related to
strengthening market standing, competitive
vitality and future business prospects.
3. Short-term Objectives
4. Long-term Objectives
Objectives are needed for all organizational
levels.
Leading the Strategic Management Process :
Role of Senior Executives
Leading strategic management process to its
successful ends a variety of leadership roles are
needed. Such as
Visionary
Strategist
Resource acquirer
Capabilities builder
Motivator
Crisis solver etc
Needed Leadership Styles
The leadership styles may be –

Hard-nosed authoritarian
Compromising
Decentralizing
Coach
https://www.yourarticlelibrary.com/
business-management/4-different-types-
of-leadership-styles/2550
Actions of Top Management
/Executives
1. Staying on top of how well things are
going.
Both formal and informal communications
are used to get right and on –time
information of performance.
Using Management by Walking Around
(MBWA).
A well communication network.
2.Making sure the company has
a good strategic plan and
communication thereof to
down-the-line mangers and key
personnel with clear
understanding and acceptance.
Actions of Top Management
/Executives
3. Putting constructive pressure on
organizational units to achieve good results and
operating excellence .
Increased team work;
higher morale;
Promoting a culture of innovation and high
performance;
Establishing a work ethics;
Creating a result –oriented work climate;
Actions of Top Management
/Executives
People oriented leadership;
Emphasizing on individual initiative
and creativity;
 Respect for the contribution of
individuals and groups
Recognizing the pride in doing things
right.
Actions of Top Management /Executives
4. Pushing corrective actions to
improve both the company’s
strategy and how well it is being
executed.
5. Leading the development of
better competencies and
capabilities
Actions of Top Management
/Executives
Proactive management .
Developing human skills, knowledge bases,
and intellectual assets.
Building new competencies and capabilities
ahead of rivals to gain a competitive edge in
the market.
6. Displaying ethical integrity and
undertaking social responsibility
initiatives
Ethical integrity : Concept of Ethics
The ethics is derived from the Greek words
‘Ethica ‘ or ‘Ethos’.
Ethica means character.
Ethos means habit , custom, character or
usage.
Today ethos refers to the distinguishing
dispositon, character, or attitude of a
specific people, culture or group.
Ethics : Definition

Ethics is the study of what is right or good in

conduct.- John S. Mackenzie.
Ethics is the philosophical inquiry into the
nature and ground of morality.- Paul W. Taylor.
So, ethics is the general theory of conduct
that measures human beings with reference
to their rightness or wrongness, their
tendency to good or evil.
Ethical Integration : Dos of top Executives
Top executives must set examples in
their own ethical behaviour and
demonstrate personal integrity in their
actions and decisions to give employees
a clear understanding about real
standard of personal conduct.
They should set company’s codes of
ethics and must declare unequivocal
support for high ethical standards.
Ethics : Dos of top Executives
Take an uncompromising stand on
adhering of ethical codes by all
employees.
Must take swift and decisive action
against ethical misconduct of
employees without any bias.
Social responsibility
Social responsibility is the set of
obligations of an organization to
seek actions that protect and
improve the welfare of society
along with its own interests.-
Kathryn M. Bartol and David C.
Martin (2005).
Elements of CSR
1. Social obligation – business shall engage in legal
pursuit of profit and should refrain from illegal
behaviour.
2. Social responsiveness – business shall take
preventive actions to preserve social good and promote
social welfare.
3. Social reaction – business shall behave in reaction
to currently prevailing social norms, values, and
performance expectations.
Social responsibility
Strategic directions shall be taken to set
core values of social responsibility and for
giving support to employees for their social
responsibility initiatives.

Both social responsibility and ethical

behaviour require visible and forthright
strategic leadership of top executives.
Corporate governance : Role of
board of directors in the strategy
making and execution process
1. Inquires critics and oversees the
company’s direction, strategy and business
approaches.
2. Evaluates the caliber of senior executives’
strategy-making and strategy-executing
skills.
Board of Directors
3. Institutes a motivating and
competitive compensation plan
and reward system.
4. Oversees financial accounting
and financial reporting practices of
the company.
 DO YOU HAVE
ANY QUESTION?