Like charges repel each other, Like charges repel each other, while opposite charges attract each other

Building new business organisation

1. Topic 2: FORMULATING A DIRECTION FOR THE COMPANY Massae R 2022 1 MSU 08501

2. Outline 2.1Organization Vision 2.2 Organization Mission 2.3 Organization Philosophy and policies 2.4 Strategic Goals and Objectives 2.5 Core values Massae R 2022 2

3. Vision of the organization A vision statement involves thinking strategically about the firms' future business plans and where to go. It create a road map for the future and decide future business position to stake out. It is an expression of aspirations, strategic intent and wishes of an organization. Vision is what the organization want to achieve in future Dess (1996) defined it as the category of intentions that are broad, all inclusive and forward thinking. Organization without a vision is a dead one. Massae R 2022 3

4. A vision statement cont …. The purpose of the vision stmn is to get your team to imagine what is psbl . Hence, it express the following The b’ness ideal position in the future or best possible outcome What you want to become as a business An openness to substantive change A goal worth stretching The core element of your strategy The change you want to see in the community/country you save A narrative for why you will take action Emotions Massae R 2022 4

5. Vision cont … Good vision statements are: Concrete and specific Bold, challenging and exciting Positive, inspiring and share sense of purpose Attainable Simple The beginning of a compelling story Surprising or unexpected Credible Massae R 2022 5

6. Vision cont … Helps to create common identity Represent integrity, working hard to benefit all. Foster risk taking and experimenting Foster long term thinking What are examples of Vision statement? Massae R 2022 6

7. Mission Statement Define how organization intends to achieve the vision or get to where they want to be in the future. The mission statement make reference to the specific changes anticipated and describe how they will support the Vision. Is defined as an enduring statement of purpose that distinguishes organization from other similar organizations. It is the fundamental reason for their existence . Massae R 2022 7

8. Mission Statement cont … Hence mission statement define the present business scope and broadly describes the orgn present capabilities, focus and activities. The mission comm. values to everyone the company touches. It will consider the basic beliefs and values of the orgn , the company target customers, the basic products and the services that customer need, how to better satisfy those needs and wants, how to offer better values to our customers, what is the business competitive adv, who are the company’s key stakeholders and how do they effect the company Massae R 2022 8

9. Components of a Mission Statement 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? Massae R 2022 9

10. Characteristic of good Mission The effective Mission statement should Broad in scope Generate range of feasible strategic alternative Not excessively specific Reconcile interest among diverse stakeholder Finely balanced between specificity and general Arouse positive feelings and emotions Provide criteria for selecting strategies Are dynamic Motivate readers to action. Massae R 2022 10

11. Organizational Philosophy These represent values, beliefs, commitments and aspirations of the company. It serves as the guide for the behaviour of its employees as well as how the organization conducts its business. It reflects the culture of the enterprise and provide the underlying framework for decision making Massae R 2022 11

12. Organizational Policies Policies are broad, precedent setting decisions that guide or substitute repetitive managerial decision making. These are guide to action that define the “ball park” within which the objectives are established and strategies are determined, implemented and controlled. Policies provide executives with a framework for decision making; They often increase managerial effectiveness by standardize routine decisions and limit the discretion of managers and subordinate in implementing operating strategies Massae R 2022 12

13. Goals and Objectives of an Organization Goals describe the future end state which is desired outcome that is a supportive of the mission and vision of the organization. Whereas, Strategic objectives are the ends the total organization hope to achieve in fulling its basic mission. These desired outcome serve as benchmarks against which an organization can measure its progress as it implements its plan. They translate into specific terms the results an organization must have in order to fulfill its mission. i.e., strategic objectives are used to operationalize the mission statement Massae R 2022 13

14. Objectives cont … Strategic objectives set forth the competitive market position and specific performance targets that an enterprise seek to achieve in pursuing the strategic mission. The following are the major areas where the long term objectives involved Public responsibility Profitability Technological leaders hip, Return on investment Massae R 2022 14

15. Objectives cont … Employees relations Employee development Market share Growth in revenue Competitive strength Growth in revenue Reputation with customers. Massae R 2022 15

16. Objectives cont … The process that lead to determination of strategic objectives is influenced by various power both inside and outside the organizations. We need objectives for the following reasons i. Convert organization’s direction into specific performance standards ii. Guard against drift, aimless activities, confusion over what to accomplish and loss of purpose Massae R 2022 16

17. Criteria for the Meaningful objectives Measurable – must be at least one indicator that measure progress against fulfilling objectives Specific – Provide a clear message as what need to be accomplished Realistic – Must be an achievable target, given the organization opportunities and capabilities in the environment Timely – There need to be a timeframe Massae R 2022 17

18. Advantages of strategic objective 1. Help to channel employees throughout the organization towards common goals 2. Challenging objectives can help to motivate and inspire employees throughout the organization to higher level of commitment and effort 3.There is always a potential for different parts of an organization to pursue their own goals rather than overall company’s goals. 4. Provide yardstick for rewards and incentives i.e. equity and fairness when rewards are allocated Massae R 2022 18

19. Goals vs. Objectives Goal Objective 1 Very short statement, with few words Longer statement, more descriptive 2 Broad in scope Narrow in scope 3 Directly relate to the mission statement Indirectly related to the mission statement 4 Cover long time period (such as 10 year) Covers short time period (such as 1 year) Massae R 2022 19