COMPANY’S VISION AND MISSION
An organization's vision and mission
act as guidelines for strategy formulation.
- The process of strategy formulation involvesarticulating a vision for the organization,
- translating the vision into a mission that
defines the organization's purpose,
- converting the mission into performance
objectives & goals
- formulating tactics and strategy for
accomplishing the goals.
A strategic vision is a road map showing
the route a company intends to take in
developing and strengthening its
business. It paints a picture of a
company’s destination and provides a
rationale for going there.
strategic vision portrays a company’s
future business scope (“ where are we
“ What sort of future do we want to create
The Mission Statement :( business purpose)
A well designed mission statement talks about
what needs of the customer are satisfied?
For whom it is served ? (customer groups)
how does the enterprise create and deliver
Basically a mission statement refers to –
What do we do ?/ What business are we in ?
The vision statement should reflect the concerns
of all stakeholders like shareholders, employees,
customers, the local community and society in
order to be effective.
The vision of the company should also try to
streamline and correlate the personal goals of
employees with organizational goals to the extent
Characteristics of an Effectively Worded
Graphic, directional, focused, flexible, feasible,
desirable ,easy to communicate.
Common shortcomings in Company vision
statements Incomplete, vague, not distinctive, too generic
and so broad.
Examples of strategic Vision statements :
We will become number one or two in every market we
serve, and revolutionize to have the speed and agility of a
To bring innovation and inspiration to every athlete in
HEINZ: Our vision is to be the world’s premier food
company, offering nutritious, superior tasting foods to
people everywhere. Being a premier food company does
not mean being the biggest but it does mean being the best
in terms of consumer value, customer service, employee
talent, and consistent and predictable growth.
Goals and objectives:
To be meaningful, goals should be SMART
T= Time frame
Examples of company objectives.
(strategic and financial objectives)
UNILEVER: Grow annual revenues by 5-6 % annually; increase
operating profit margins from 11% -16% within 5 years; trim the
company’s 1200 food, household, and personal care products down to 400
core brands; focus sales and marketing efforts on those brands with
potential to become respected, market leading global brands; and
streamline the company’s supply chain
To achieve annual growth in earnings per share of 10% or better, on
average; a return of stockholder’s equity of 20-25 %; a return on capital
employed of 27 % or better; and have at least 30 % of sales come from
products introduced in the past four years
A company’s values are the beliefs, business
principles, and practices that guide the conduct of its
business, the pursuit of its strategic vision, and the
behaviour of company personnel.
By values it is meant the beliefs, business principles,
and practices that are incorporated into the way the
company operates and the behaviour of company
Values relate to such things as treatment of
employees and customers, integrity, ethics,
innovativeness, emphasis on quality of service, social
responsibility and community citizenship.
WHY VALUE STATEMENTS
ARE GROWING IN
The Arthur Andersen Scam
The World Com, Tyco ,
Satyam , etc.
of the big five worldwide- Arthur
Andersen was renowned for its
commitment to the highest standards of
audit integrity, but its high profile audit
failures and partner approval of shady
accounting at Enron, World Com, etc , led
to its demise.