unit-2-vision-mission-objectives-and-strategy.pptx

Description about vision, mission and objective.

1. BBA 8 th Semester MGT 208 Business Strategy By Muna , Kewal and Himal

2. Unit – 2 Vision and Mission, Objectives and Strategy Concept of Strategic Vision The picture of desired future state of an organization that reflects a firm’s values and aspiration.

3. Strategic Visions Characteristics / Qualities of strategic visions Future focused Directional Clear Feasible Values based Challenging Unique Inspiring

4. Strategic Visions Benefits of strategic vision Provides direction Guides for decisions Shapes strategy Sets priority Aligns people and activities Reflects core values and belief Empowers employees Brings change

5. Developing Strategic Vision A wider participation in development of strategic vision enhances their effectiveness. All the key factors such as internal strength and weakness, external changes and trends, emerging needs and service expectations of customers should be reviewed very carefully. It should be external and market oriented and express in inspiration…… All the managers from top to lower level should be involved in the ,…… of developing the strategic vision. It enhances commitment towards organization. It facilitates formulation and implementation of strategy.

6. Developing Strategic Vision 4. The managers should be asked to review related literature on the …… and prepare a strategic vision and mission statement for the organization. 5. The statements prepared by different managers should be merged … single document and distribute the draft statements to all managers. 6. A meeting of the managers is held for modifications, addition and deletions if needed and revise the documents. 7. As mentioned earlier, the input and support from the employees ….managers enriches strategy formulation, implementation and evaluate activities. Hence, the development of strategic vision statement provides opportunity for strategists to obtain needed support from all the employees and managers.

7. Developing Strategic Vision 8. Some organizations use group discussions to develop and modify the existing statement. An outside consultant or facilitator may also be ….manage the process and help draft the language. 9. After preparing the statements, decisions on how to communicate …….managers, employees and external stakeholders are needed. A ……may be prepared to explain the statement.

8. Communicating the strategic visions The strategic vision should be well communicated to all managers, employees, and external stakeholders. A clear communicated strategic values provides long term direction to the organizations.

9. Mission Concept of mission The reason of organizational existence defines the business in terms of customers, employees, suppliers and the community.

10. Crafting a mission statement Define the purpose Make it broad in scope Precise Inspiring Distinctive

11. Importance of mission Brings uniformity Base of resource allocation Develops organizational culture Enhances employee ownership Defines the business Reflects the organizational responsibility Shows the operating philosophy

12. Difference between vision and mission statement Basics of difference Vision statement Mission statement Objectives Its aim is to show where the organization wants to be in future. Its aim to show how the organization will get to where it wants to be. Answer It answers the questions, “Where do we aim to be?” It answers the questions, “What do we do? What makes us different?” Time A vision statement talks about future. A mission statement talks about the present leading to its future. Change A vision statement does not change even if the market conditions change. A mission statement changes with the change in market conditions. Functions It describes where the organization sees itself years from now. It lists the broad goals for which the organization is formed.

13. Characteristics of mission Broad in scope Precise Inspiring Multi components Distinctive Components of strategy

14. Linking vision and mission with company values There is a close linkage between vision, mission and company values. The vision is the foundation for the mission. A mission statement defines the business in terms of the customers, employees, suppliers and its community. The value statement is the description of the guiding principles of organizational activities . Company values provide support for the vision and mission.

15. Objectives Concept of objectives The expected outcomes of an organization are known as objectives. They convert the strategic visions into specific performance targets. Objectives shows the managerial commitment towards performance achievement.

16. Objectives Components of objectives Specific Measurable Achievable Realistic Timely Motivating Flexible Hierarchical Congruent across departments

17. Crafting objectives Define vision, mission and values Environmental analysis Determination of strategic objective Formulation of financial objective

18. Levels of objectives Corporate level objectives Business level objectives Functional level objectives Individual level objectives

19. Role of objective in strategic management Objectives define the relationship of the organization with its environment. Shows the relevancy of vision and mission of the organization. Provide the base of strategic decision making. Also provide foundation for the development of work standard. Helps develop distinctiveness and existence of an organization and enhance organizational attractiveness.

20. Financial versus strategic objective Financial objectives Annual percentage increases in sales Annual percentage increase in after tax profit Annual percentage increase in earning per share Percentage return on capital employed or equity Sufficient cash flows

21. Financial versus strategic objective Strategic objectives Percentage increase in market share Achieving lower overall cost than the competitors Achieving technological leadership Superior product performance or quality or customer service

22. Differences between financial and strategic objectives Bases of differences Financial objectives Strategic objectives Time They are the expected outcome of an organization in short range normally within or below 1 year. They are the expected outcome of an organization in long range normally above 5 years. Expression They are expressed in quantitative terms. They are expressed in qualitative terms. Support They support the strategic objectives. They support the strategic vision. Scope They are narrower than the strategic objectives. They are broad in nature.

23. The End THANK YOU