SlideShare ist ein Scribd-Unternehmen logo
1 von 20
Downloaden Sie, um offline zu lesen
HIERARCHY
       OF
STRATEGIC INTENT


          Ms. Neha Kalra
          APJIMTC
"A strategist’s job is to see the company not as it is . . .but as it
  can become."
                    —John W. Teets, Chairman of Greyhound, Inc

  Strategic Intent                                      Vision
                                                        Mission

Purpose the organisation strives for               Business definition

Lays out the framework                                 Goals and
                                                       Objectives
IBM-Importance of vision
During IBM’s profitability decline in the 1990s, the company had a loss of nearly $14 billion. In 1993
IBM announced a loss of $8.1 billion—the largest corporate loss of its time. This loss explains the
decision to replace its CEO at the time with Lou Gerstner in April of 1993. Some of the problems
IBM was facing when Gerstner arrived were:
Bad Decisions- IBM continued to focus on the mainframe industry and ignored the emerging
personal computer. Executives failed to realize that fast-paced computer industry, and they remained
complacent.
Too Much Arrogance- IBM was considered unbeatable in the 1960s and 1970s. IBM believed that
its name would be enough to sell computers even when it was not positioned correctly in the market.
Outsourcing to Competitors- IBM panicked when it realize that it was behind in the PC market.
Instead of producing the parts of the computer itself, IBM outsourced production to Microsoft and
Intel. Microsoft and Intel were small companies and could have been purchased by IBM. 25
Executives were unable to correct this horrific mistake.
IBM-Contd…..
 Bad Focus- IBM was unable to pick a market in which they wanted to compete.
 Customers were becoming more and more fragmented, and IBM wanted to provide
 for everyone. However, in trying to accommodate everyone, IBM accommodated no
 one.
 High Costs- IBM was recognized as an employer for life. The founder of IBM
 engrained that a job with IBM was a life-long job. This idea led to high-costs because
 employees were never laid off, even in non-profitable times

          "The last thing IBM needs right now is a vision. (Before 1993)
           What IBM needs most right now is a vision. (March 1993)"
                                 —Louis V. Gerstner Jr., CEO, IBM Corporation
GERSTNER’S TURNAROUND STRATEGY FOR IBM

  Gerstner had the foresight to realize the importance of the mainframe
  due to the onslaught of corporate internetworking while competitors
  declared the mainframe “dead.”
  Manipulated the competitive direction of the company
  Gerstner knew that internetworking pointed to increased demand for
  central processing, big databases, larger storage units, and different
  types of servers.
Gerstner succeeded in returning the computer giant to a profitable state.
VISION
 A vision statement is sometimes called a picture of your company in
 the future. It is the dream of what you want your company to accomplish.
 Many organizations today develop a vision statement that answers the
 question “What do we want to become?”
 A vision articulates the position that a firm would like to attain in the
 distant future. It encapsulates the basic strategic intent.
 “A description of something(an organisation, corporate culture, a
 business, a technology, an activity) in the future.”
                                                -Kotter
WHY SHOULD ORGANIZATIONS HAVE A
“VISION”
 Good visions are inspiring and exhilarating.
 Good visions foster long term thinking.
 It creates a common identity and a shared sense of purpose.
 They are competitive, unique and simple.
 Good visions foster risk-taking and experimentation.
 They represent integrity.
VISION STATEMENT EXAMPLES
 General Motors’ vision is to be the world leader in transportation
 products and related services. (Good statement)
 Tyson Foods’ vision is to be the world’s first choice for protein
 solutions while maximizing shareholder value. (Good statement, unless
 Tyson provides nonprotein products, too specific)
 PepsiCo’s responsibility is to continually improve all aspects of the
 world in which we operate -environment, social, economic—creating a
 better tomorrow than today. (Statement focuses on the concern of the
 company towards the community)
Dell’s vision is to create a company culture where
environmental excellence is second nature. (Statement
focuses on environmental concern of the company)
Samsonite’s vision is to provide innovative solutions for the
travelling world. (Statement could have been more indicative
of the specific product it deals in or its core values or concern
for the society)
Procter & Gamble’s vision is to be, and be recognized as,
the best consumer products company in the world. (Good
Statement)
VISION STATEMENTS-ELECTRONICS INDUSTRY

            Channeling our energies towards the pursuit of customer
              value and becoming a highly profitable company.



             LG’s vision is to deliver innovative digital products and
            services that make our customers’ lives better, easier and
                 happier through increased functionality and fun.


           To create exciting new digital entertainment experiences for
           consumers by bringing together cutting-edge products with
                      latest generation content and services.
MISSION
 Mission is what an organization is and why it exists.
 “Essential purpose of the organization, concerning particularly why it is in
 existence, the nature of business(ess) it is in and the customers it seeks to serve
 and satisfy”.
                                                                     -Thompson(1997)
 Mission is the "purpose or reason for the organization's existence".
                                                          -Hunger and Wheelen (1999)
 The mission statement articulates the company’s purpose both for those in the
 organizations and for the society.
CHARACTERISTICS OF A MISSION STATEMENT

 It should be feasible
 It should be precise
 It should be clear
 It should be motivating
 It should be distinctive
 It should include major components of strategy
 It should indicate how objectives are to be accomplished
NINE COMPONENTS
1. Customers—Who are the firm’s customers?
2. Products or services—What are the firm’s major products or services?
3. Markets—Geographically, where does the firm compete?
4. Technology—Is the firm technologically current?
5. Concern for survival, growth, and profitability—Is the firm committed to growth and financial
    soundness?
6. Philosophy—What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
7. Self-concept—What is the firm’s distinctive competence or major competitive
advantage?
8. Concern for public image—Is the firm responsive to social, community, and
environmental concerns?
9. Concern for employees—Are employees a valuable asset of the firm?
SOME MISSION STATEMENT EXAMPLES
 Dell’s mission is to be the most successful computer company (2) in the world at
 delivering the best customer experience in markets we serve (1). In doing so, Dell
 will meet customer expectations of highest quality; leading technology (4);
 competitive pricing; individual and company accountability (6); best-in-class
 service and support (7); flexible customization capability (7); superior
 corporate citizenship (8); financial stability (5).
 Procter & Gamble will provide branded products and services of superior quality
 and value (7) that improve the lives of the world’s (3) consumers. As a result,
 consumers (1) will reward us with industry leadership in sales, profit (5), and
 value creation, allowing our people (9), our shareholders, and the communities
 (8) in which we live and work to prosper.
BUSINESS DEFINITION: DEREK ABELL’S




  Business Definition

                                     15
GOALS AND OBJECTIVES
 Goals denote what an organisation hopes to accomplish in a future period
 of time. They represent the future state or outcome of effort put in now.
 Objectives are the ends that state specifically how the goals shall be
 achieved. They are concrete and specific in contrast to goals that are
 generalised.




                                                                             16
ROLE OF OBJECTIVES
 Objectives define the organisation's relationship with its environment
 Objectives help an organisation pursue its vision and mission
 Objectives provide the basis for strategic decision-making
 Objectives provide the standards for performance appraisal




                                                                          17
CHARACTERISTICS OF OBJECTIVES
 Objectives should be understandable
 Objectives should be concrete and specific
 Objectives should be related to a time frame
 Objectives should be measurable and controllable
 Objectives should be challenging
 Different objectives should correlate with each other
 Objectives should be set within constraints


                                                         18
FACTORS FOR OBJECTIVE SETTING

 The forces in the environment
 Realities of enterprise' resources and internal power relationships
 The value system of the top executive
 Awareness by the management




                                                                       19
ISSUES IN OBJECTIVE SETTING

 Specificity
 Multiplicity
 Periodicity
 Verifiability
 Reality
 Quality


                              20

Weitere ähnliche Inhalte

Was ist angesagt?

Behavioural implementation
Behavioural implementationBehavioural implementation
Behavioural implementationDr. Pinki Insan
 
Functional implementation
Functional implementationFunctional implementation
Functional implementationDr. Pinki Insan
 
Strategic Management : Vision & Mission
Strategic Management : Vision & MissionStrategic Management : Vision & Mission
Strategic Management : Vision & MissionSeta Wicaksana
 
Learning ( organisational behaviour)
Learning ( organisational behaviour) Learning ( organisational behaviour)
Learning ( organisational behaviour) JYOTI CHADHA
 
Introduction To International HRM
Introduction To International HRMIntroduction To International HRM
Introduction To International HRMAmith Prakash
 
Approaches to international compensation
Approaches to international compensationApproaches to international compensation
Approaches to international compensationSHAMSEER PADAYAN
 
International compensation ppt
International compensation ppt International compensation ppt
International compensation ppt poorni s
 
Business level strategy
Business level strategyBusiness level strategy
Business level strategyapurva97
 
Production and Operations Management
Production and Operations ManagementProduction and Operations Management
Production and Operations ManagementNishant Agrawal
 
Levels of strategy
Levels of strategyLevels of strategy
Levels of strategyaaditya koul
 
hierarchy of strategic intent
hierarchy of strategic intent hierarchy of strategic intent
hierarchy of strategic intent Manish Kaushik
 
Mba iii (business policy and strategic analysis)
Mba iii (business policy and strategic analysis)Mba iii (business policy and strategic analysis)
Mba iii (business policy and strategic analysis)Ankit Rautela
 
Chapter 7 strategic management
Chapter 7 strategic management Chapter 7 strategic management
Chapter 7 strategic management Kalsoom Fatima
 
Factors affecting organizational design
Factors affecting organizational designFactors affecting organizational design
Factors affecting organizational designrishikant555
 
Strategic management
Strategic managementStrategic management
Strategic managementNawal Badu
 

Was ist angesagt? (20)

Behavioural implementation
Behavioural implementationBehavioural implementation
Behavioural implementation
 
Functional implementation
Functional implementationFunctional implementation
Functional implementation
 
Strategic Management : Vision & Mission
Strategic Management : Vision & MissionStrategic Management : Vision & Mission
Strategic Management : Vision & Mission
 
Learning ( organisational behaviour)
Learning ( organisational behaviour) Learning ( organisational behaviour)
Learning ( organisational behaviour)
 
Introduction To International HRM
Introduction To International HRMIntroduction To International HRM
Introduction To International HRM
 
Approaches to international compensation
Approaches to international compensationApproaches to international compensation
Approaches to international compensation
 
International compensation ppt
International compensation ppt International compensation ppt
International compensation ppt
 
Business level strategy
Business level strategyBusiness level strategy
Business level strategy
 
Strategic intent
Strategic intentStrategic intent
Strategic intent
 
Production and Operations Management
Production and Operations ManagementProduction and Operations Management
Production and Operations Management
 
Plant Location Decision
Plant Location DecisionPlant Location Decision
Plant Location Decision
 
Strategic implementation
Strategic implementationStrategic implementation
Strategic implementation
 
Levels of strategy
Levels of strategyLevels of strategy
Levels of strategy
 
hierarchy of strategic intent
hierarchy of strategic intent hierarchy of strategic intent
hierarchy of strategic intent
 
Mba iii (business policy and strategic analysis)
Mba iii (business policy and strategic analysis)Mba iii (business policy and strategic analysis)
Mba iii (business policy and strategic analysis)
 
Chapter 7 strategic management
Chapter 7 strategic management Chapter 7 strategic management
Chapter 7 strategic management
 
Factors affecting organizational design
Factors affecting organizational designFactors affecting organizational design
Factors affecting organizational design
 
International Industrial Relations
International Industrial RelationsInternational Industrial Relations
International Industrial Relations
 
Strategic management
Strategic managementStrategic management
Strategic management
 
Cost leadership strategy
Cost leadership strategyCost leadership strategy
Cost leadership strategy
 

Andere mochten auch

Strategic intent
Strategic intentStrategic intent
Strategic intentwimmba
 
Strategic control
Strategic controlStrategic control
Strategic controlnitinsoni02
 
Levels of strategy
Levels of strategyLevels of strategy
Levels of strategyHemant Kumar
 
Mc kenzie 7s framework
Mc kenzie 7s frameworkMc kenzie 7s framework
Mc kenzie 7s frameworkHitesh Kothari
 
7s framework
7s framework7s framework
7s frameworkmukthu
 
Strategic management at different levels
Strategic management  at different levelsStrategic management  at different levels
Strategic management at different levelsSeta Wicaksana
 
Global strategy
Global strategyGlobal strategy
Global strategyrajeev roy
 
Strategic control
Strategic controlStrategic control
Strategic controlRohit Kumar
 
Environmental scanning
Environmental scanningEnvironmental scanning
Environmental scanningRajesh kumar
 
Chapter 4 corporate level strategies
Chapter 4 corporate level strategiesChapter 4 corporate level strategies
Chapter 4 corporate level strategiesKaysee Das
 
Strategic management ppt
Strategic management pptStrategic management ppt
Strategic management pptayushi jain
 
Functional level strategies
Functional level strategiesFunctional level strategies
Functional level strategiesmohitagarwal1989
 
Functional Strategies
Functional StrategiesFunctional Strategies
Functional StrategiesSuresh Singh
 

Andere mochten auch (20)

Strategic intent
Strategic intentStrategic intent
Strategic intent
 
Strategic control
Strategic controlStrategic control
Strategic control
 
Different levels of strategy
Different levels of strategyDifferent levels of strategy
Different levels of strategy
 
Levels of strategy
Levels of strategyLevels of strategy
Levels of strategy
 
Nature of sm ppt
Nature of sm pptNature of sm ppt
Nature of sm ppt
 
Mc kenzie 7s framework
Mc kenzie 7s frameworkMc kenzie 7s framework
Mc kenzie 7s framework
 
7s framework
7s framework7s framework
7s framework
 
operational control
operational controloperational control
operational control
 
Strategic management at different levels
Strategic management  at different levelsStrategic management  at different levels
Strategic management at different levels
 
Global strategy
Global strategyGlobal strategy
Global strategy
 
Strategic control
Strategic controlStrategic control
Strategic control
 
Environmental scanning
Environmental scanningEnvironmental scanning
Environmental scanning
 
Chapter 4 corporate level strategies
Chapter 4 corporate level strategiesChapter 4 corporate level strategies
Chapter 4 corporate level strategies
 
Strategic management ppt
Strategic management pptStrategic management ppt
Strategic management ppt
 
Corporate strategy
Corporate strategyCorporate strategy
Corporate strategy
 
Functional level strategies
Functional level strategiesFunctional level strategies
Functional level strategies
 
Corporate level strategies
Corporate level strategiesCorporate level strategies
Corporate level strategies
 
Functional strategies
Functional strategiesFunctional strategies
Functional strategies
 
Strategy formulation
Strategy formulationStrategy formulation
Strategy formulation
 
Functional Strategies
Functional StrategiesFunctional Strategies
Functional Strategies
 

Ähnlich wie Strategic intent

Strategy formulation: Vision, Mission and Purpose
 Strategy formulation: Vision, Mission and Purpose Strategy formulation: Vision, Mission and Purpose
Strategy formulation: Vision, Mission and PurposeNishant Pahad
 
How Leaders Mistake Execution for Strategy (and Why That Damages Both)
How Leaders Mistake Execution for Strategy (and Why That Damages Both)How Leaders Mistake Execution for Strategy (and Why That Damages Both)
How Leaders Mistake Execution for Strategy (and Why That Damages Both)Strategy&, a member of the PwC network
 
Strategic purpose company mission 6 june 11
Strategic purpose  company mission 6 june 11Strategic purpose  company mission 6 june 11
Strategic purpose company mission 6 june 11ritik_vermani
 
Mission Vision Objective Goal
Mission Vision Objective GoalMission Vision Objective Goal
Mission Vision Objective GoalKavyaGupta70
 
Strategic management army 2015 chp2 (1)
Strategic management army 2015 chp2 (1)Strategic management army 2015 chp2 (1)
Strategic management army 2015 chp2 (1)Opie Mohamad
 
Chapter02
Chapter02Chapter02
Chapter02John Sy
 
Vision Mission Objectives Goals
Vision Mission Objectives Goals Vision Mission Objectives Goals
Vision Mission Objectives Goals jyothimonc
 
Corporate Vision
Corporate VisionCorporate Vision
Corporate Visionajithsrc
 
The Business Vision and Mission
The Business Vision and MissionThe Business Vision and Mission
The Business Vision and MissionNoel Buensuceso
 
Definition of Business
Definition of BusinessDefinition of Business
Definition of BusinessRaj vardhan
 
Managerial process of crafting strategy
Managerial process of crafting strategyManagerial process of crafting strategy
Managerial process of crafting strategyMD SALMAN ANJUM
 
Strategic Management Lecture 2
Strategic Management Lecture 2Strategic Management Lecture 2
Strategic Management Lecture 2jillmitchell8778
 
· From the assigned textbook, Managing Organizational Change 3rd r.docx
· From the assigned textbook, Managing Organizational Change 3rd r.docx· From the assigned textbook, Managing Organizational Change 3rd r.docx
· From the assigned textbook, Managing Organizational Change 3rd r.docxoswald1horne84988
 
Strategic Management Mission and Vision Statement ppt_02
Strategic Management Mission and Vision Statement ppt_02Strategic Management Mission and Vision Statement ppt_02
Strategic Management Mission and Vision Statement ppt_02Masroor Soomro
 
6. vision, mission, etc.
6. vision, mission, etc.6. vision, mission, etc.
6. vision, mission, etc.Jigar Lakhani
 
Strategic Management: Concepts & Cases Chapter 02
Strategic Management: Concepts & Cases Chapter 02 Strategic Management: Concepts & Cases Chapter 02
Strategic Management: Concepts & Cases Chapter 02 KaleemSarwar2
 
Setting aspiration
Setting aspirationSetting aspiration
Setting aspirationSyeda Zaidi
 

Ähnlich wie Strategic intent (20)

Strategy formulation: Vision, Mission and Purpose
 Strategy formulation: Vision, Mission and Purpose Strategy formulation: Vision, Mission and Purpose
Strategy formulation: Vision, Mission and Purpose
 
How Leaders Mistake Execution for Strategy (and Why That Damages Both)
How Leaders Mistake Execution for Strategy (and Why That Damages Both)How Leaders Mistake Execution for Strategy (and Why That Damages Both)
How Leaders Mistake Execution for Strategy (and Why That Damages Both)
 
Strategic purpose company mission 6 june 11
Strategic purpose  company mission 6 june 11Strategic purpose  company mission 6 june 11
Strategic purpose company mission 6 june 11
 
Mission Vision Objective Goal
Mission Vision Objective GoalMission Vision Objective Goal
Mission Vision Objective Goal
 
Strategic management army 2015 chp2 (1)
Strategic management army 2015 chp2 (1)Strategic management army 2015 chp2 (1)
Strategic management army 2015 chp2 (1)
 
Chapter02
Chapter02Chapter02
Chapter02
 
Vision Mission Objectives Goals
Vision Mission Objectives Goals Vision Mission Objectives Goals
Vision Mission Objectives Goals
 
Corporate Vision
Corporate VisionCorporate Vision
Corporate Vision
 
The Business Vision and Mission
The Business Vision and MissionThe Business Vision and Mission
The Business Vision and Mission
 
Definition of Business
Definition of BusinessDefinition of Business
Definition of Business
 
Strategic management mba
Strategic management mbaStrategic management mba
Strategic management mba
 
1 business definition
1 business definition1 business definition
1 business definition
 
Managerial process of crafting strategy
Managerial process of crafting strategyManagerial process of crafting strategy
Managerial process of crafting strategy
 
Strategic Management Lecture 2
Strategic Management Lecture 2Strategic Management Lecture 2
Strategic Management Lecture 2
 
· From the assigned textbook, Managing Organizational Change 3rd r.docx
· From the assigned textbook, Managing Organizational Change 3rd r.docx· From the assigned textbook, Managing Organizational Change 3rd r.docx
· From the assigned textbook, Managing Organizational Change 3rd r.docx
 
Strategic Management Mission and Vision Statement ppt_02
Strategic Management Mission and Vision Statement ppt_02Strategic Management Mission and Vision Statement ppt_02
Strategic Management Mission and Vision Statement ppt_02
 
6. vision, mission, etc.
6. vision, mission, etc.6. vision, mission, etc.
6. vision, mission, etc.
 
Strategic Management: Concepts & Cases Chapter 02
Strategic Management: Concepts & Cases Chapter 02 Strategic Management: Concepts & Cases Chapter 02
Strategic Management: Concepts & Cases Chapter 02
 
Setting aspiration
Setting aspirationSetting aspiration
Setting aspiration
 
Business mission
Business missionBusiness mission
Business mission
 

Strategic intent

  • 1. HIERARCHY OF STRATEGIC INTENT Ms. Neha Kalra APJIMTC
  • 2. "A strategist’s job is to see the company not as it is . . .but as it can become." —John W. Teets, Chairman of Greyhound, Inc Strategic Intent Vision Mission Purpose the organisation strives for Business definition Lays out the framework Goals and Objectives
  • 3. IBM-Importance of vision During IBM’s profitability decline in the 1990s, the company had a loss of nearly $14 billion. In 1993 IBM announced a loss of $8.1 billion—the largest corporate loss of its time. This loss explains the decision to replace its CEO at the time with Lou Gerstner in April of 1993. Some of the problems IBM was facing when Gerstner arrived were: Bad Decisions- IBM continued to focus on the mainframe industry and ignored the emerging personal computer. Executives failed to realize that fast-paced computer industry, and they remained complacent. Too Much Arrogance- IBM was considered unbeatable in the 1960s and 1970s. IBM believed that its name would be enough to sell computers even when it was not positioned correctly in the market. Outsourcing to Competitors- IBM panicked when it realize that it was behind in the PC market. Instead of producing the parts of the computer itself, IBM outsourced production to Microsoft and Intel. Microsoft and Intel were small companies and could have been purchased by IBM. 25 Executives were unable to correct this horrific mistake.
  • 4. IBM-Contd….. Bad Focus- IBM was unable to pick a market in which they wanted to compete. Customers were becoming more and more fragmented, and IBM wanted to provide for everyone. However, in trying to accommodate everyone, IBM accommodated no one. High Costs- IBM was recognized as an employer for life. The founder of IBM engrained that a job with IBM was a life-long job. This idea led to high-costs because employees were never laid off, even in non-profitable times "The last thing IBM needs right now is a vision. (Before 1993) What IBM needs most right now is a vision. (March 1993)" —Louis V. Gerstner Jr., CEO, IBM Corporation
  • 5. GERSTNER’S TURNAROUND STRATEGY FOR IBM Gerstner had the foresight to realize the importance of the mainframe due to the onslaught of corporate internetworking while competitors declared the mainframe “dead.” Manipulated the competitive direction of the company Gerstner knew that internetworking pointed to increased demand for central processing, big databases, larger storage units, and different types of servers. Gerstner succeeded in returning the computer giant to a profitable state.
  • 6. VISION A vision statement is sometimes called a picture of your company in the future. It is the dream of what you want your company to accomplish. Many organizations today develop a vision statement that answers the question “What do we want to become?” A vision articulates the position that a firm would like to attain in the distant future. It encapsulates the basic strategic intent. “A description of something(an organisation, corporate culture, a business, a technology, an activity) in the future.” -Kotter
  • 7. WHY SHOULD ORGANIZATIONS HAVE A “VISION” Good visions are inspiring and exhilarating. Good visions foster long term thinking. It creates a common identity and a shared sense of purpose. They are competitive, unique and simple. Good visions foster risk-taking and experimentation. They represent integrity.
  • 8. VISION STATEMENT EXAMPLES General Motors’ vision is to be the world leader in transportation products and related services. (Good statement) Tyson Foods’ vision is to be the world’s first choice for protein solutions while maximizing shareholder value. (Good statement, unless Tyson provides nonprotein products, too specific) PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate -environment, social, economic—creating a better tomorrow than today. (Statement focuses on the concern of the company towards the community)
  • 9. Dell’s vision is to create a company culture where environmental excellence is second nature. (Statement focuses on environmental concern of the company) Samsonite’s vision is to provide innovative solutions for the travelling world. (Statement could have been more indicative of the specific product it deals in or its core values or concern for the society) Procter & Gamble’s vision is to be, and be recognized as, the best consumer products company in the world. (Good Statement)
  • 10. VISION STATEMENTS-ELECTRONICS INDUSTRY Channeling our energies towards the pursuit of customer value and becoming a highly profitable company. LG’s vision is to deliver innovative digital products and services that make our customers’ lives better, easier and happier through increased functionality and fun. To create exciting new digital entertainment experiences for consumers by bringing together cutting-edge products with latest generation content and services.
  • 11. MISSION Mission is what an organization is and why it exists. “Essential purpose of the organization, concerning particularly why it is in existence, the nature of business(ess) it is in and the customers it seeks to serve and satisfy”. -Thompson(1997) Mission is the "purpose or reason for the organization's existence". -Hunger and Wheelen (1999) The mission statement articulates the company’s purpose both for those in the organizations and for the society.
  • 12. CHARACTERISTICS OF A MISSION STATEMENT It should be feasible It should be precise It should be clear It should be motivating It should be distinctive It should include major components of strategy It should indicate how objectives are to be accomplished
  • 13. NINE COMPONENTS 1. Customers—Who are the firm’s customers? 2. Products or services—What are the firm’s major products or services? 3. Markets—Geographically, where does the firm compete? 4. Technology—Is the firm technologically current? 5. Concern for survival, growth, and profitability—Is the firm committed to growth and financial soundness? 6. Philosophy—What are the basic beliefs, values, aspirations, and ethical priorities of the firm? 7. Self-concept—What is the firm’s distinctive competence or major competitive advantage? 8. Concern for public image—Is the firm responsive to social, community, and environmental concerns? 9. Concern for employees—Are employees a valuable asset of the firm?
  • 14. SOME MISSION STATEMENT EXAMPLES Dell’s mission is to be the most successful computer company (2) in the world at delivering the best customer experience in markets we serve (1). In doing so, Dell will meet customer expectations of highest quality; leading technology (4); competitive pricing; individual and company accountability (6); best-in-class service and support (7); flexible customization capability (7); superior corporate citizenship (8); financial stability (5). Procter & Gamble will provide branded products and services of superior quality and value (7) that improve the lives of the world’s (3) consumers. As a result, consumers (1) will reward us with industry leadership in sales, profit (5), and value creation, allowing our people (9), our shareholders, and the communities (8) in which we live and work to prosper.
  • 15. BUSINESS DEFINITION: DEREK ABELL’S Business Definition 15
  • 16. GOALS AND OBJECTIVES Goals denote what an organisation hopes to accomplish in a future period of time. They represent the future state or outcome of effort put in now. Objectives are the ends that state specifically how the goals shall be achieved. They are concrete and specific in contrast to goals that are generalised. 16
  • 17. ROLE OF OBJECTIVES Objectives define the organisation's relationship with its environment Objectives help an organisation pursue its vision and mission Objectives provide the basis for strategic decision-making Objectives provide the standards for performance appraisal 17
  • 18. CHARACTERISTICS OF OBJECTIVES Objectives should be understandable Objectives should be concrete and specific Objectives should be related to a time frame Objectives should be measurable and controllable Objectives should be challenging Different objectives should correlate with each other Objectives should be set within constraints 18
  • 19. FACTORS FOR OBJECTIVE SETTING The forces in the environment Realities of enterprise' resources and internal power relationships The value system of the top executive Awareness by the management 19
  • 20. ISSUES IN OBJECTIVE SETTING Specificity Multiplicity Periodicity Verifiability Reality Quality 20