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Vision,mission,objectives & goals


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Vision,mission,objectives & goals

  1. 1. Today’s topics for discussion • Meaning – Vision, Mission, Goals and Objectives • Should the Mission Statement be changed? • How Does a Mission Statement Help a Firm? • Essentials of Mission Statement: • Business Objectives • OBJECTIVES FORMULATION • Classification of Business Objectives
  2. 2. • A blind person asked a Saint : ''Can there be anything worse than losing eye sight?'' He replied, ''Yes, losing your vision!''
  3. 3. Vision-Mission-Objectives & Goals Vision- “A description of something (an organization, corporate culture, a business, a technology, an activity ) in the future”. Mission & purpose: An organization’s mission includes both a statement of organizational philosophy and purpose. A mission statement tells who we are, and what we would like to become. P&G states their purpose as follows: We will provide products of superior quality and value that improve the lives of the world’s consumers. As a result, consumers will reward us with leadership sales and profit growth, allowing our people, our shareholders, and communities in which we live and work to prosper.” The mission of General Motors states: “The fundamental purpose of General Motors is to provide products and services of such quality that our customers will receive superior value, our employees and business partners will share in our success, and our stockholders will receive a sustained, superior return on their investment.”
  4. 4. Vision-Mission-Objectives & Goals Should the Mission Statement be changed? The following changes may necessitate a change in the purpose of the Business: Changes in the competitive position. Changes in the top-level management. Changes in the level of technology. Changes in the availability of resources. Demographic changes. Changes in government policies. Shifts in consumer demand. Changes in the societal outlook. Changes in international environment.
  5. 5. Vision-Mission-Objectives & Goals How Does a Mission Statement Help a Firm? Provides direction in planning and in setting objectives of the firm. It helps the personnel at various levels in the organization to understand the direction in which they should move. It helps the firm to focus on the customers, as the very basis of the business is the customer. It helps the firm to respect and reward the individuals. i.e., the employees, the shareholders, customers, suppliers, and other members of the society who are involved in some way or the other with the organization. A review of the business definition/purpose helps the firm to understand the changes in the environment and as such the firm may make necessary changes in its structure to adapt to the changing needs of the environment.
  6. 6. Vision-Mission-Objectives & Goals Essentials of Mission Statement: Clarity: sense of purpose and direction Feasible: should be “SMART” Current: as per environment – it should not outdated Enduring: should be motivating, guiding and inspiring–for higher & better performance. Distinctive: Unique & Distinctive. Precise: should contain few words, and not a very long statements. It should sound good and look good. Comprehensive: It should indicate the philosophy, the purpose, and the strategy to be adopted to accomplish it.
  7. 7. Vision-Mission-Objectives & Goals Business Objectives Business planning starts with setting of objectives. Objectives are the ends, which the organization intends to achieve through its existence and operations. Organizational objectives vary from organization to organization. Objectives as broad aims whereas; goals are more specific in nature. The objectives can be divided in to sub-objectives called goals. The following are the areas where corporate objectives have to be set. •Continuity of profits •Growth in assets. •Increase in market share or market leadership. •Service to customers, or clients. •Employees satisfaction and well-being. •Productivity or efficiency improvement. •Product innovations and development. cont-
  8. 8. Vision-Mission-Objectives & Goals ContThe following are the areas where corporate objectives have to be set. •Maximization of shareholders wealth. •Enhancement of corporate image. •Social responsibility. OBJECTIVES FORMULATION Analyze Internal & External Environment Values & Beliefs of Top Management Awareness of Past Developments Setting of Objectives
  9. 9. Vision-Mission-Objectives & Goals Classification of Business Objectives Organic Objectives: Survival, Growth & Prestige Economic Objectives: Profit, Innovation, Better utilization of Resources, Increase in Market share, Expansion of Markets, Product introduction & Wealth, etc. Social Objectives: Employees, Shareholders, Customers, Government, Dealers, Media & Competitors etc. Human Objectives: Wages, Working conditions, Labor participation in Management, Human resource development, Job satisfaction & Welfare facilities, etc. National Objectives: Self-Sufficiency, Development of Backward areas, Employment & Social welfare, etc.
  10. 10. Vision-Mission-Objectives & Goals CRITICAL SUCCESS FACTORS & SUCCESS OF THE ORGANIZATION CSF’s are important or key factors. The strategists must consider the CSF’s in formulating the strategy. The firm can concentrate the resources and efforts on CSF’s. All functional areas focuses on their CSF’s. An organization does not land on CSF by chance. CSF are the result of long years of managerial experience which leads to the development of CSF. The CSF can also be developed through discussions and consultations with employees who are connected with day-to-day working in different functional area.
  11. 11. THANK-YOU