LAUNCHING NEW

VENTURES:
Vision-Mission-
Objectives-Strategies
BUSPLA2
DR. EMIE SARREAL
 STRATEGIES
• Best means by which an organization can
achieve its desired goals
• Four types of strategizing:
– Adaptive strategizing
– Ideological strategizing
– Creative strategizing
– Rational, sequential, and analytical strategizing
 Adaptive Strategizing
• Assess opportunities as they come
along, evaluate the risks of pursuing
these opportunities, and make
decisions according to set criteria
• Examples: building blocks, locomotive
train, hub and spokes, molecules,
chess game, amoeba, niching
 Ideological Strategizing
• Basis for strategies are espoused set
of beliefs, philosophies or ideologies
• Examples: Christianity and Islam,
Capitalist and Socialist, Republicans
and Democrats, cause-oriented
groups, NGOs
 Creative Strategizing
• Concerned about inventing new
products and services, innovating on
new technologies, and processes and
discovering or uncovering new
markets
 Best Practices of Highly
Creative Enterprises
• How are the enterprises organized and structured?
• How are creative people hired and nurtured?
• What kinds of environment is needed to foster creativity
and innovation?
• What creative thinking tools or techniques are used?
• What are the processes employed to generate, evaluate,
and choose creative ideas?
• How are the creative teams motivated and rewarded?
• What kind of organizational culture do these organizations
possess?
• Who in the organization promotes and champions creativity?
 Rational, Sequential and
Analytical Strategizing
• Follows step-by-step process using logical reasoning
– Top down
• starts from futuristic vision of the organization ->
mission statement -> objectives -> key result areas ->
performance indicators -> strategies ->
objectives/action plans ->activities -> tasks – resources
required
– Bottom up
• Realities of the external (O and T) and internal (S and
W) environments
• Matching OT with SW  SWOT analysis allows
development of strategic options
 TOP DOWN &
BOTTOM UP PLANNING
VISION

MISSION

OBJECTIVES

KEY RESULT AREAS

PERFORMANCE INDICATORS

RESOURCES
REQUIRED
OPERATING ACTIVITIES &
STRATEGIES (MONEY,
PLANS/PROGRAMS TASKS
FACILITIES &
PEOPLE)

TOWS/SWOT
Analysis

OPPORTUNITIES (O) & STRENGTHS (S) &

THREATS (T) WEAKNESSES (W)

EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT

ASSESSMENT ASSESSMENT

- Macroenvironment (Social, - Organizational capabilities and

Technological, Economic,
Ecological, Political)
- Industry.Sector key trends and
key result areas
-Market analysis, supply and
demand, competitors, substitutes
-Micromarket feasibility analysis
(location feasibility, immediate
customers needs, wants, values,
interests. Attitudes)
competencies
- Management functions,
programs and projects
- Teams and individuals
- Physical assets, environmental
conditions
-Top management, Board,
Leadership, Governance,
Direction, Morale, Systems

SOURCE: MORATO, E.(2006),

Strategic Planning and
 Vision
• Futuristic picture of the enterprise,
described in words or a vision
statement
• Timebound, ambitious but realistic,
and with geographical and target
market (customer and product) focus
 Mission/Goals

• Proclaims the basic purpose for the

existence of the organization
• Specifies product or service to be
rendered, defines the market.
• For whose benefit is it being established?
• Two main stakeholders are the owners and
the employees whose desire for better
lives must be satisfied
 Objectives
• Measurable end results, usually
center around major ends:
– Increasing profits
– Expanding markets
– Satisfying customers with quality
products and services
– Providing reasonable compensation and
benefits to employees
 Key Result Areas
(KRAs)
• Attainment of objectives or
measurable end results can be
manifested and measured by KRAs
• KRAs are qualitative manifestations
or proofs that the objectives are
being achieved
 Performance Indicators
(PIs)
• KRAs must be converted into numerical
performance indicators
• PIs are exact quantifications of the KRAs
• PIs or outcomes fall into any of the six R’s
– Reach
– Recognition
– Ratings
– Revenues
– Returns
– Responsiveness
 Strategies
• In how many ways can the performance
indicators be attained?
– ALTERNATIVE STRATEGIC OPTIONS
SHOULD BE SUBSTANTIALLY DIFFERENT
FROM ANOTHER (MUTUALLY EXCLUSIVE)
– MAJOR MOVE OR SIGNIFICANT CHANGE
IN THE OVERALL DIRECTION OF THE
ORGANIZATION
 Types of Strategies
• Generic Strategies
– Cost leadership
– Differentiation
– Focus-Cost Leadership
– Focus-Differentiation
• Functional Area Strategies
– Marketing Strategies
– Operations/Production Strategies
– Financial Strategies
– Information Systems Strategies
– Human Resource Strategies
 Functional Strategies
• Marketing strategies
– Segmentation strategies
– Target market selection strategies
– Differentiation strategies
– Marketing Mix strategies
 Functional Strategies
• Operations Methods
– Production process strategies
– Capacity strategies
– Location strategies
– Work Design strategies
– Layout strategies
 Functional Strategies
• Financial and Accounting Strategies
– Evaluating financial performance
– Financial forecasting, planning and
budgeting
– Financing mix
 Functional Strategies
• Information System Strategies
– Manual
– Computer Based
• Types of Information Systems for Entrepreneurial
Ventures
– Transaction Processing System (TPS)
– Office Automation System (OAS)
– Management Information System (MIS)
– Decision Support System (DSS)
– Executive Support System (ESS)
 Activities
• Undertakings of groups within an
organization to accomplish the
programs assigned to different group
– Specify what the various groups must do
to accomplish the program
– Include all important actionable work
plans that must be achieved
 Tasks
• What individuals in the organizations
do to ensure that the activities are
done.
• An activity is a set of tasks – details
of what must be executed within a
specific time frame
 Resources
• Tasks demand certain amounts of resources
• Resources are the inputs required to deliver
tasks, activities, programs and strategies
• Resources can be stated in terms of 3 P’s of
People, Pesos and Physical Assets
• Alternatively, resources can be in terms of the
six M’s of input: money, manpower, machinery
and equipment, materials, methods and
management