The VISION, MISSION AND GOALS in strategic.pptx

The vision, mission and goals in strategic management

1. BA 4101 Strategic Management Vision and Mission statements Goals and objectives

2. After studying this chapter, you should be able to do the following: 1. Describe the nature and role of vision and mission statements in strategic management. 2. Discuss why the process of developing a mission statement is as important as the resulting document. 3. Identify the components of mission statements. 4. Discuss how clear vision and mission statements can benefit other strategic-management activities. 5. Evaluate mission statements of different organizations. 6. Write good vision and mission statements

3. WAL- MART- Doing great in a weak economy During the 2008 economic downturn, Wal-Mart increased its revenues and net income, earning the 11th spot on Fortune's "Most Admired Company in the World" list in 2009. Expanded internationally, particularly in emerging markets like Brazil and India, with 53% of international spending allocated to these markets from 2009 to 2013. Focused on remodeling existing stores domestically. Enhanced electronics product line to compete with Best Buy by revamping electronics departments in 3,500 U.S. stores.

4. WAL- MART Began selling sophisticated electronics, including smartphones and touch-screen computers. World's largest retailer with over 7,870 stores globally. Leading the retail market in Canada and Mexico; operations in Asia, Europe, and South America. Leader in sustainability, installing rooftop solar arrays and launching an environmental labeling program. Founder Sam Walton’s heirs own about 40% of Wal-Mart. Committed to innovation and sustainability in its operations.

5. WAL- MART July 2009 - Wal-Mart launched an environmental labeling program. All vendors must calculate and disclose the full environmental costs of their products. Information for Shoppers - This information is distilled into a new labeling system. The program aims to redefine the consumer products labeling process globally by 2012.

6. WAL- MART Walmart's vision statement is: "To build a better world by helping people live better and renew the planet while building thriving, resilient communities." This vision reflects Walmart's commitment to sustainability, community engagement, and improving the lives of its customers and associates. Walmart's mission statement is: "To save people money so they can live better." This mission reflects Walmart's dedication to offering low prices on a wide range of products, allowing customers to improve their quality of life through savings.

7. New Business New businesses start with beliefs about offering products or services, using technology, and making a profit. Founders believe the management philosophy will create a positive public image. Vision and Mission Statements: Reflect these initial beliefs and are often written down as the business’s vision and mission. These statements evolve as the business grows but retain the core ideas. Usage: Found in annual reports, company premises, and business documents (e.g., loan requests, supplier agreements). . In a recent study, 90% of companies have used a mission statement in the past five years.

8. Peter Drucker's Influence: Guidelines for mission statements are largely based on the work of Peter Drucker, a key figure in modern management. Known for his pioneering studies at General Motors and his extensive publications, including 22 books and hundreds of articles. Harvard Business Review recognized Drucker as "the preeminent management thinker of our time.“ The term preeminent means surpassing all others; very distinguished or outstanding in a particular field. It indicates someone or something that is considered to be the best or most important in a specific area.

9. VISION Describes what an organization aspires to achieve in the long-term future, generally within a timeframe of five to ten years or more. It provides a clear and motivating picture of the company's future, guiding the planning and execution of corporate-level strategies.

10. VISION STATEMENT EXAMPLES

11. Vision versus Mission

12. Mission Statement Components Mission statements can and do vary in length, content, format, and specificity. Most practitioners and academicians of strategic management feel that an effective statement should include nine components. Because a mission statement is often the most visible and public part of the strategic-management process, it is important that it includes the nine characteristics as summarized

13. Mission Statement 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. EXAMPLES OF MISSION STATEMENTS We aspire to make PepsiCo the world’s (3) premier consumer products company, focused on convenient foods and beverages (2). We seek to produce healthy financial rewards for investors (5) as we provide opportunities for growth and enrichment to our employees (9), our business partners and the communities (8) in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity (6). (Author comment: Statement lacks three components: Customers, Technology, and Self-Concept) We are loyal to Royal Caribbean and Celebrity and strive for continuous improvement in everything we do. We always provide service with a friendly greeting and a smile (7). We anticipate the needs of our customers and make all efforts to exceed our customers’ expectations (1). We take ownership of any problem that is brought to our attention. We engage in conduct that enhances our corporate reputation and employee morale (9). We are committed to act in the highest ethical manner and respect the rights and dignity of others (6). ( Author comment: Statement lacks five components: Products/Services, Markets, Technology, Concern for Survival/Growth/Profits, Concern for Public Image)

15. EXAMPLES OF MISSION STATEMENTS At L’Oreal , we believe that lasting business success is built upon ethical (6) standards which guide growth and on a genuine sense of responsibility to our employees (9), our consumers, our environment and to the communities in which we operate (8). (Author comment: Statement lacks six components: Customers, Products/Services, Markets, Technology, Concern for Survival/Growth/Profits, Concern for Public Image)

16. Characteristics of a Mission Statement Broad in scope; do not include monetary amounts, numbers, percentages, ratios, or objectives Less than 250 words in length Inspiring Identify the utility of a firm’s products Reveal that the firm is socially responsible Reveal that the firm is environmentally responsible Include nine components customers, products or services, markets, technology, concern for survival/growth/ profits, philosophy, self-concept, concern for public image, concern for employees Reconciliatory Enduring

17. Ten Benefits of Having a Clear Mission and Vision 1. Achieve clarity of purpose among all managers and employees. 2. Provide a basis for all other strategic planning activities, including the internal and external assessment, establishing objectives, developing strategies, choosing among alternative strategies, devising policies, establishing organizational structure, allocating resources, and evaluating performance. 3. Provide direction. 4. Provide a focal point for all stakeholders of the firm. 5. Resolve divergent views among managers.

18. Ten Benefits of Having a Clear Mission and Vision 6. Promote a sense of shared expectations among all managers and employees. 7. Project a sense of worth and intent to all stakeholders. 8. Project an organized, motivated organization worthy of support. 9. Achieve higher organizational performance. 10. Achieve synergy among all managers and employees .

19. The importance (benefits) of vision and mission statements to effective strategic management 1 . To ensure unanimity of purpose within the organization 2. To provide a basis, or standard, for allocating organizational resources 3. To establish a general tone or organizational climate 4. To serve as a focal point for individuals to identify with the organization’s purpose and direction, and to deter those who cannot from participating further in the organization’s activities 5. To facilitate the translation of objectives into a work structure involving the assignment of tasks to responsible elements within the organization 6. To specify organizational purposes and then to translate these purposes into objectives in such a way that cost, time, and performance parameters can be assessed and controlled.

20. Goals and Objectives Goals are specific outcomes or achievements that an individual, organization, or entity aims to accomplish within a certain timeframe. They provide direction, focus, and a sense of purpose, guiding efforts and resources towards desired results. Key characteristics of goals include: Specificity : Clearly defined and precise. Measurability : Capable of being tracked and assessed. Attainability : Realistic and achievable given available resources. Relevance : Aligned with broader objectives or values. Time-bound : Set within a specific period or deadline.

21. Objectives Objectives are specific, actionable targets that organizations or individuals set to achieve broader goals. They break down goals into smaller, manageable tasks and provide a clear pathway to achieving desired outcomes. Key characteristics of objectives include: Specificity : Clearly defined and precise. Measurability : Capable of being tracked and assessed with specific metrics. Achievability : Realistic and attainable given the resources and constraints. Relevance : Aligned with broader goals and priorities. Time-bound : Set within a specific timeframe or deadline. While goals are broad and aspirational, objectives are narrow and operational, providing the detailed steps necessary to accomplish the overarching goals.

22. Example : Walmart

23. Case Study: Siemens Strategy   The company Siemens has outlined its mission, vision, goals, strategic objectives, core values, and cultural specifics in its strategy outline “Siemens Vision 2020” (Siemens, 2019). The president and CEO, Joe Kaeser, outlines the key elements of the Siemens strategy for the coming years. He stresses that with the positioning along the electrification value chain, Siemens has know-how that extends from power generation to power transmission, power distribution, and smart grid to the efficient application of electrical energy. And with the outstanding strengths in auto- mation , Kaeser confirms that Siemens is well equipped for the future and the age of digitalization. The Siemens Vision 2020 defines an entrepreneurial concept that will enable the enterprise to consistently occupy attractive growth fields, sustainably strengthen its core business, and outpace its competitors in efficiency and performance. All goals are focused on a long-term success (Siemens, 2019). The mission of Siemens can be defined as “We make real what matters, by setting the bench- mark, in the way we electrify, automate and digitalize the world around us. Ingenuity drives us and what we create is yours. Together we deliver” (Siemens, 2019).

24. Siemens Vision 2020" strategy: Strengths: Strong expertise in electrification and automation Leadership in digitalization Weaknesses: High operational costs Complex organizational structure Opportunities: Expansion into emerging markets Increasing demand for sustainable energy Threats: Intense competition in the digitalization sector Regulatory challenges

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