An organization’s vision and mission act as guidelines for strategic formulation. The
process of strategy formulation involves articulating a vision for the organization,
translating the vision into a mission that defines the organization’s purpose,
converting the mission into performance objectives, detailing each objective into
specific goals, and formulating tactics and strategies for accomplishing the goals.
UNIT TOGETHER WITH TOP MANAGEMENT
UNIT MANAGERS WITH APPROVAL OF SUPERVISE
EACH ORGANIZATIONAL LEVEL; IN CONFORMITY WITH UNITPOLICIES
INDIVIDUAL MANAGERS IN CONFORMITY WITH UNIT POLICIES
INDIVIDUAL MANAGERS, IN CONFORMITY WITH UNIT GOALS
STRATEGIES & TACTICS
What is Vision?
In Simple words, Vision is the ability to see: sight or eyesight.
Something that you imagine a picture in your mind.
A well-conceived vision comprises two main components:
1st component is core ideology
2nd component is envisioned future
What is Mission Statement?
A mission statement is a statement which is used as a way of
communicating the purpose of the organization.
Most corporate mission statements are built around three main
1.) History of the organization
2.) Distinct competencies of the organization
3.) The environmental of the organization
Some of the characteristics of a good mission
i.) It differentiate the company from its competitors
ii.) It defines the business(es) that the company wants to be in,
not necessarily the one in it.
iii.) It is inspiring.
Key Elements of a Mission Statement
View of the future
Source of the
Formulating a mission statement includes:-
i.) The product/service of the organization
ii.) The market of the organization
iii.) The geographical domain
iv.) Main Technology used
v.) The organization’s quest for survival, growth and profitability
vi.) The organization’s philosophy
vii.) The organization’s public image
viii.) The organization’s value system
ix.) The organization’s self-concept.
Basic Product, Primary Market and Principal technology:-
The three indispensable components of a mission statement are the basic
product, the primary market and the principal technology used in
production or delivery.
A company goals represent a clear statement of intent. Company goals are
high-level and strategic, encompassing the entire team and every
in a business.
Effective Company’s goals helps to gain:
i.) Increase customer service
ii.) Maximise sales
iii.) Launch new products
iv.) Be best for value.
It is a theory used to determine how a business handles different areas
Mental picture that springs up at the mention of a firm’s name.
A company’s mission reveals its self-concept. The idea that the
organization/firm must “know itself’ is the essence of the term
Corporate social responsibility is a public movement that has gained
momentum over the past decades. As a result, organization have
building social criteria their strategic decision-making.
Managers of the organization have four social responsibilities:
i.) Economic “Must do”
ii.) Legal “Have to do”
iii.) Ethical “Should do”
iv.) Discretionary “Might do”
Social Responsibility is not a one way process; the organizations
themselves benefit considerably by under-taking greater social
The organizations are responsible to all who come under the category
The category of stakeholders:
iii.) Local community
Stakeholders Approach to Social Responsibility
Strategic managers must recognize the legitimate role of stakeholders of the firm in
defining or redefining the company mission.
The stakeholders of a firm can be divided into two categories: Insiders and Outsiders.
Claimants to a company mission:
• Executive Officers
• Board of Directors
• Stockholders and
• Legal Committees
• General public
Guidelines for a Socially Responsible Firm
• The main purpose of a business is to make profit.
• Profits cannot be claimed until business costs are paid.
• If there are social costs in areas where no objective standards for
correction exist, managers should generate a corrective standard.
Strategy and Business Ethics
Ethics is defined as “the discipline dealing with what is good and bad,
right or wrong, or with moral duty and obligation.” Business Ethics
encompasses the morality of issues in business.
The purpose of business ethics is not to teach the difference between
right or wrong, but the people the tools for giving with more
Business Ethics is important and worthy of serious attention. The
behaviour of strategic leaders and their awareness of the behaviour of
employees at all level throughout the organization influence that the
aspect of corporate culture.
Ethical Decision making
It is the process of evaluating and choosing among alternatives in a
manner consistent with ethical decisions.
There is no worldwide standard of conduct for business people.
Cultural and norms vary from country to country, and ethics group
within a country.
Thus, Strategic leaders should be objective about how society views
their company and its products, and, wherever possible, should avoid
actions that can damage its image.