introduction to vision, mission, goals and objectives

1. Chapter Two: Introduction
The Business Mission, Vision, and Objectives
Wollo University, Department of
Management

2. Vision?

3. BUSINESS VISION:
 vision statement is your inspiration, the framework
for all your strategic planning.
 It is critically essential that management and
executive agree on the basic vision, which the
organization endeavors to accomplish over a period
of time
 A lucid and clear vision lays down a foundation on
which a sound mission statement can be built.
 the vision statement answers the question, “Where
do we want to go?” Vision statement also answers
the question “What do we want to become?”

4. CONT’D
 a vision statement is for you and the other members of
your company, not for your customers or clients.
 It is what the firm or a person would ultimately like to
become.
 Should be short and specific.
 It should be based on overall purpose of organization

5. CHARACTERISTICS
1. It is ‟ a blue print of the kind of business organization the
management is trying to create and the market position it
would occupy.
2. It should be forward looking a provide strategic course
the management will adopt to help the company prepare
the future
3.Specific and provide guidelines to managers for making
decisions and allocating resources
4. Flexible to changing environment
5. Within realm of companies hope to achieve

6. CONT’D
6. Appeal to emotions and motivate employees
7. May not fit to present circumstance, but contributes to
future. Shows picture of future.
8. Should be easy to explain to all stake holders

7. Wollo University aspires to be one of the top five societal problem solving
universities in the country by 2020.

8. General Motors’ vision is to be the world
leader in transportation products and related
services.

9. Tyson Foods’ vision is to be the world’s
first choice for protein solutions while
maximizing shareholder value.
BSNL Vision Statement : “To become the
largest telecom service provider in Asia.”

10. BENEFITS OF HAVING A VISION
 Good visions are inspiring and exhilarating.
 Help the organization to prepare for the future.
 Good vision help to motivate and morale boosting of
employees.

12. THE BUSINESS MISSION
 An organization’s mission is the purpose or reason for the
organization’s existence. It tells what the company is providing
to society either a service or a product.
 It defines the unique purpose that sets a company apart from
other firms of its type and identifies the scope or domain of the
company’s operations in terms of products or services offered
and markets served.

13. CONT’D
It is essential for effectively establishing objectives and
formulating strategies
 Mission Statements are also known as:
 Creed statement
 Statement of purpose
 Statement of philosophy
 Statement of business principles
 A mission statement focuses on current business activities --
“who we are and what we do”
 Current product and service offerings
 Customer needs being served
 Technological and business capabilities

14. Characteristics of good Mission Statements
 Broad in scope/ Not excessively specific
 Reconcile interests among diverse stakeholders
 Arouse positive feelings and emotions
 Motivate readers to action
 Basis for generating & screening strategic options
 Dynamic in orientation

16. COMPONENTS OF A MISSION STATEMENT
Components and corresponding questions that a mission statement
should answer are given here.
1. Customer: 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?

17. Example of Wollo University’s mission
statement:
Wollo University’s mission is to produce
competent entrepreneurial graduates,
provide need based community services
and demand driven/problem solving
research outputs through relevant and
quality education, research, training and
consultancy service to foster socio-
economic development in the country.

18. The Mission of Bellevue Hospital, with respect,
compassion, integrity, and courage, honors the individuality
and confidentiality of our patients, employees, and
community, and is progressive in anticipating and providing
future health care services.
Apple Computer:
– Mission: To bring the best personal computing products
and support to consumers around the world.
– Vision: One person, one computer.

21. OBJECTIVES
 Objectives are yardsticks for tracking a company’s
performance or end result.
– Financial performance objectives (e.g., ROA, ROI, ROE,
Dividend growth, Stock price, etc.).
– Strategic performance objectives (e.g., market share,
growth, innovation leader, customer service, community &
environmental responsibility, etc.)
 Example:
Financial: To achieve an average of 10 inventory turns over
and a corporate operation profits margin of 16% by 1998.

22. CONT’D
 Objectives represent a managerial commitment to achieve
specified results in a specified period, of time. They clearly
spell out the quantity and quality of performance to be
achieved, the time period, the process and the person who is
responsible for the achievement of the objective.
 Objectives are more specific and narrower
 Objectives are always measurable and particular
 It vary with the hierarchical level in the organization,
becoming more focused and short term going down from top
level to frontline managers.

23. IMPORTANCE OF OBJECTIVES
1. Objectives help in coordinating decisions and Decision –
maker
2. Objectives help in formulating strategies
3. Objectives provide standards for assessing organizational
performance

24. CHARACTERISTICS OF GOOD OBJECTIVE
1. Specific
2. Time horizon
3. Attainable
4. Measurable

26. CONT’D
 Objectives represent a managerial commitment to
achieve specified results in a specified period, of time.
 They clearly spell out the quantity and quality of
performance to be achieved, the time period, the process
and the person who is responsible for the achievement of
the objective.

27. CHAACTERISTICS
1. Objectives form a hierarchy
2. Multiplicity of objectives
3. Long and short range objectives

28. IMPORTANCE OF OBJECTIVES
1. Objectives help to define the organization in its
environment
2. Objectives help in coordinating decisions and decision-
maker
3. Objectives help in formulating strategies
4. Objectives provide standards for assessing
organizational performance

29. CONT’D
Example Objectives
 Minnesota Mining & Manufacturing (3M) Financial
objectives
1. To achieve 10% growth in earnings per share.
2. To achieve 20% - 25% return on equity.
3. To achieve 27% return on capital employed.

31. GOAL
 Goal is defined as an “intermediate result to be achieved by
a certain time as part of the grand plan . A plan can, there for
have many goals.”
 Goal is a specific target that a firm intend to reach in long
term.
 Goals should be measurable, quantitative, challenging,
realistic, consistent and prioritized.

32. GOAL VS OBJECTIVES
 Goals are an expected or desired outcome of a planning
process. Goals are usually broad, general expressions of the
guiding principles and aspirations of an organization.
 Objectives are precise targets that are necessary to achieve
goals.
 Objectives are detailed statements of quantitatively or
qualitatively measurable results the plan hopes to accomplish.