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COMPANY

VISION,MISSION,AND
GOALS

Presented By:
Ravi Kumar
IBS Jaipur
Benefits of “Strategic Thinking” and a
“Strategic Approach” to Managing
 Guides entire firm regarding “what it is we are trying to do and
to achieve”
 Makes managers more alert to
“winds of change, new opportunities,
and threatening developments
 Unifies numerous strategy-related
decisions and organizational efforts
 Creates a proactive atmosphere
 Promotes development of an evolving business model
focused on bottom-line success
 Provides basis for competing and achieving competitive
advantage

HELPS A COMPANY PREPARE FOR THE


FUTURE!
The Five Tasks
of Strategic Management
Task 1 Task 2 Task 3 Task 4 Task 5

Formulate Monitor,
Develop Implement
Set Strategy Evaluate,
Vision and
Goals & to Achieve and Take
and Execute
Objectives Goals & Corrective
Mission Strategy
Objectives Action

Revise as Revise as Improve/ Improve/ Recycle


Needed Needed Change Change as Needed
Who Performs the Five
Strategic Management Tasks?
 Senior Corporate
Executives
 Managers of
Subsidiary
Business Units
 Functional Area
Managers
 Operating
Managers
Strategic Role of a Board of
Directors
 Critically appraise and ultimately approve
strategic action plans
 Evaluate strategic leadership skills of the
CEO and candidates to succeed the CEO
Why is a Strategic Vision
Important?
 A managerial imperative exists to look beyond
today and think strategically about ?
– Impact of new technologies
– How customer needs and expectations are changing
– What it will take to outrun competitors
– Which promising market opportunities ought to be
aggressively pursued
– External and internal factors driving what a company
needs to do to prepare for the future
VISION
STATEMENT ABOUT A COMPANY’S
LONG-TERM DIRECTION
MISSION

DEFINES COMPANY’S BUSINESS

1. PRODUCT / MARKET
2. TERRITORY / GEOGRAPHY
Missions vs. Strategic Visions
 A mission statement  A strategic vision
focuses on current concerns a firm’s future
business activities -- business path --
“who we are and “where we are going”
what we do” – Markets to be
– Current product and pursued
service offerings – Future technology-
– Customer needs product-customer
being served focus
– Technological and – Kind of company that
business capabilities management is
trying to create
Example of Vision & Mission

Intel

Our vision: Getting to a billion connected computers


worldwide, millions of servers, and trillions of dollars
of e-commerce. Intel’s core mission is being the
building block supplier to the Internet economy and
spurring efforts to make the Internet more useful.
Being connected is now at the center of people’s
computing experience. We are helping to expand the
capabilities of the PC platform and the Internet.
Simple Mission Statements

Eastman Kodak
We are in the picture business.

Wit Capital
(an Internet startup company)

Our mission is to be the premier Internet


investment banking firm focused on the offering
and selling of securities to a community of online
individual investors.
Examples of Mission Statements

Otis Elevator
Our mission is to provide any customer a means
of moving people and things up, down, and
sideways over short distances with higher
reliability than any similar enterprise in the world.

Avis Rent-a-Car
Our business is renting cars. Our mission is total
customer satisfaction.
Example of Mission Statement

(a unique grocery store chain)

Our mission: To give our customers the best


food and beverage values that they can find
anywhere and to provide them with the
information required for informed buying
decisions. We provide these with a dedication to
the highest quality of customer satisfaction
delivered with a sense of warmth, friendliness,
fun, individual pride, and company spirit.
Example of Mission Statement

Ritz-Carlton Hotels

The Ritz-Carlton Hotel is a place where the genuine


care and comfort of our guests is our highest mission.
We pledge to provide the finest personal service and
facilities for our guests who will always enjoy a warm,
relaxed yet refined ambiance.
The Ritz-Carlton experiences enlivens the senses,
instills well-being, and fulfills even the unexpressed
wishes and needs of our guests.
Setting Goals & Objectives
Second Task of Strategic Management

 Converts strategic vision


and mission into specific
performance targets
 Creates yardsticks to track
performance
 Pushes firm to be inventive
and focused on results
 Helps prevent complacency
and coasting
GOALS
BROAD TARGETS

OBJECTIVES

QUANTIFIED & TIME-BASED


Strategic Goals
 Increase firm’s market share
 Overtake key rivals on quality or
customer service or product performance
 Attain lower overall costs than rivals
 Boost firm’s reputation with customers
 Attain stronger foothold in international
markets
 Achieve technological superiority
 Become leader in new product introductions
 Capture attractive growth opportunities
What is Strategy?
 A company’s strategy consists of the set of
competitive moves and business approaches that
management is employing to run the company
 Strategy is management’s “game plan” to
– Attract and please customers

– Stake out a market position

– Conduct operations

– Compete successfully

– Achieve organizational objectives


“Without a strategy the
organization is like a ship
without a rudder, going
around in circles.”
“Quote”
By: AZHAR KAZMI
Thinking Strategically:
The Three Big Strategic
Questions
1. Where are we now?
2. Where do we want to go?
– Business(es) to be in and market positions to
stake out?
– Buyer needs &group to serve serve?
– Outcomes to achieve?
3. How do we get there?
The Hows That
Define a Firm's Strategy
 How to grow the business
 How to please customers Strategy
 How to outcompete rivals is HOW
to . . .
 How to respond to changing
market conditions
 How to manage each functional piece of the
business and develop needed organizational
capabilities
 How to achieve goals & objectives
A Company’s Strategy is Partly
Planned and Partly Reactive
ra tegy
ed s t
n d o n
Aba a t ures
f e
Company Planned Stra
New initiativ
t
gy e
Experiences, es plus ong
strategy fea oing
Know-how, tures contin
ued
Resource from prior p
eriods Actual
Strengths and Company
Weaknesses, Strategy
and ti o n s to
t i ve reac
Competitive Ada p
m s t a n ces
g i n g c ircu
Capabilities c han
S t r a t e gy
e
Reactiv
Levels of Strategy-Making in
a Diversified Company

Corporate-Level Corporate
Managers Strategy

Two-Way Influence
Business-
Level Business Strategies
Managers
Two-Way Influence

Function-
al Functional Strategies
Manager
s Two-Way Influence

Opera- Operating Strategies


ting
Managers
Levels of Strategy-Making in
a Single-Business Company

Executive-Level
Managers Business
Strategy

Two-Way Influence

Functional
Managers Functional Strategies

Two-Way Influence

Operating Strategies
Operating
Managers
Networking of Missions,
Goals/Objectives, and Strategies
Level 1 Corporate-wide Corporate Corporate
Strategic Level Level
Corporate- Vision Objectives Strategy
Level
Managers Two-Way Influence Two-Way Influence Two-Way Influence

Level 2 Business Business Business


Business-Level Level Strategic Level Level
Vision Objectives Strategies
Managers
Two-Way Influence Two-Way Influence Two-Way Influence
Level 3
Functional Functional Functional Functional
Missions Objectives Strategies
Managers
Two-Way Influence Two-Way Influence Two-Way Influence
Level 4
Plant Managers, Operating Operating Operating
Lower-Level Missions Objectives Strategies
Supervisors
Factors Shaping the
Choice of Company Strategy
Social,
political, Competitive
Company  External Factors
opportunities
regulatory conditions
and threats to
and and industry
company’s
community attractiveness
well-being
factors

Determine
relevance Identify
Craft
of internal and
Company’s Strategic Situation and evaluate
the
strategy
external alternatives
factors

Resource
strengths, Influences of Shared values
capabilities, key and company
and
weaknesses
executives culture
 Internal Factors
SWOT Analysis -
What to Look For
Potential Resource Potential Resource Potential Company Potential External
Strengths Weaknesses Opportunities Threats

• Powerful strategy • No clear strategic • Serving additional • Entry of potent new


• Strong financial direction customer groups competitors
condition • Obsolete facilities • Expanding to new • Loss of sales to
• Strong brand name • Weak balance geographic areas substitutes
image/reputation sheet; excess debt • Expanding product • Slowing market
• Widely recognized • Higher overall line growth
market leader costs than rivals • Transferring skills • Adverse shifts in
to new products exchange rates &
• Proprietary • Missing some key
trade policies
technology skills/competencies • Vertical integration
• Costly new
• Cost advantages • Subpar profits • Take market share
regulations
• Strong advertising • Internal operating from rivals
• Vulnerability to
• Product innovation problems . . . • Acquisition of
business cycle
skills • Falling behind in rivals
• Growing leverage
• Good customer R&D • Alliances or JVs to of customers or
service • Too narrow expand coverage suppliers
• Better product product line • Openings to exploit • Reduced buyer
quality • Weak marketing new technologies needs for product
• Alliances or JVs skills • Openings to extend • Demographic
brand name/image changes
Company’s Strategy -- What to Look
For
Actions to diversify Actions to outcompete rivals

Actions to strengthen Responses to


resources & changing external
capabilities circumstances
Pattern
of Actions
How functional Actions to alter
That Define
activities are geographic
managed Strategy coverage
Efforts to pursue Actions to merge or
new opportunities or acquire rival companies
defend against threats
Actions to form strategic
alliances and collaborative

partnerships
THANK YOU

Have a Nice Evening