The document discusses key business strategy concepts including mission statements, vision statements, objectives, goals, and core competencies. It provides examples and definitions for each concept. A mission statement describes an organization's current purpose and stakeholders. A vision statement describes the desired future state. Objectives and goals must be specific, measurable, attainable, realistic, and time-bound. Core competencies provide competitive advantages through unique skills and processes.

1. Unit 7 – Business Strategies
Lecture 01 - Strategic contexts and
terminology – missions,
visions, objectives, goals, core
competencies (P1)

2. What is mission statement?
A mission statement is a role, or purpose, by which
an organization intends to serve its
stakeholders.
It describes what the organization does (current
capabilities), who it to serve (stakeholders), and
what makes the organization unique (justification
for existence).
Mission statements always exist at the top level of
an organization, but may also be set for different
organizational levels or components.
A mission statement is simply an organization's
reason for existing.

3. What does mission statement do?
It tells a company’s stories and ideals in less
than 30 seconds.
It provides the focus on the main business
activities
If it is written well, it can help reduce “clutter”
in other documents and processes.
It can be described as “The best way to
make a fire with two sticks is to make sure
one of them is a match.”

4. Missions
For developing missions of any project or
organisation, the following two questions’
answers should be written:
1. What are we going to do?
2. How are we going to do it

5. Examples of mission statement
Farm fresh company –
To become the number one produce store in
Main Street by selling the highest quality,
freshest farm produce, from farm to
customer in under 24 hours on 75% of our
range and with 98% customer satisfaction

6. What is a Vision Statement?
Vision statement identifies where the organization
intends to be in the future or where it should be
to best meet the needs of stakeholders.
Incorporates a shared understanding of the nature
and purpose of the organization and uses this
understanding to move the organization toward
a greater purpose.
It is a business’s guiding image of success.
“Destiny is not a matter of chance, but of choice.
Not something to wish for, but to attain.

7. Why do we need vision?
Vision statement is a tool to inspire and
provide a sense of direction and purpose.
A vision provides the fabric for working
together and accomplishing our goals.
A good vision statement will help when there
are no clear answers, or for critical
decisions that will fundamentally impact
your products or services. Control your
destiny or someone else will!

8. What makes a good vision
statement?
It would be short, simple and powerful.
Remember a vision is meant to inspire, has
an emotional impact.
It must give a clear direction or mental
image to anyone that reads it.
Provide a sense of belonging to the
stakeholders. “We provide the world’s
builders”.

9. How to write mission statement?
Write down your ideas for why you need
mission statement for your company.
This is your dream, the thought of success
over the next 5 to 10 years.
This is the emotion.
This the path or goal we all must meet.
“Knowledge is limited. Imagination
encircles the world”.

10. Examples of visions
1. McDonald’s - We are committed To
doing what is right. To being a good
neighbour and partner in the community
To conduct our business with the
environment in mind
2. Ford – our company delivers excellent
products and services and strives to
make the world a better place.

11. Difference between mission and
vision
As a group of two, write at least two
differences between mission and vision,
and discuss with tutor

12. Difference between mission and
vision (cont.)
A mission statement describes the *present* state
of a person or organization: "Who are you? Why
are you here? Why do you exist?"
The vision statement describes *future* state:
"Who do I want to be? Where do we want to
go?" The vision should be inspirational and
slightly out of reach. Typically, it is a person or
organization's vision that provides a framework
for planning.

13. Objectives
After developing mission statement, objectives are
required to define. Objectives are much specific
than mission statement
For example- I want to finish my assignment by 10
o’clock this morning. This indicates to perform a
number of tasks including typing text into
computer, reviewing some questions/criteria that
have already be written, printing out the
assignment for proofreading and so on.

14. Objectives (cont.)
Objectives must be evaluated by SMARTER tool:
Specific
Measurable
Attainable
Realistic
Timeframe
Extending
Rewarding

15. What is goal?
• Goal is a target to achieve within a specific
time. Without goal or aim, you cannot live
(lead) your life happily and with the feeling
of satisfaction.
• Goal can be one or more objectives that
need to be achieved by specific time.
• Goal makes one to get clarification to do a
specific task choosing from various
options what one thinks of about his future

16. Types of goals
• Uniform goals
• Performance based goals
• Potential based goals

17. Types of goals - Uniform
• A single goal is set for all organizations
within the Company.
• Every organization is expected to meet the
same goal.

18. Types of goals - Performance
based goals
• Every organization is given a goal that
reflects an increment on last year’s
performance
• Increments are chosen to represent equal
effort for organizations at different starting
points

19. Types of goals – Potential based
goals
• Criteria (external and/or internal) are used
to assess organisation’s potential
• Based on criteria of a model or ratings,
goals are set by the criteria
• Goal = f (criterion)

20. Core competencies
• The objective of strategic planning process is to assess
the core competencies of a company
• Core competencies are a set of unique internal skills
processes and system provide competitive advantage in
the market.
• A company should list functions, activities and skills that
add values to both products and services better than
competitors.
• For example, one function such as research, distribution,
marketing or selling can add value to a product and this
function needs to be improved continuously to stay
ahead than other competitors

21. Core competencies (cont.)
• Core competencies can be defined as the unique
combination of the resources and experiences of a
particular firm. It takes time to build these core
competencies and they are difficult to imitate. Critical to
sustaining these core competencies are their:
• Durability - their life span is longer than individual
product or technology life-cycles, as are the life spans of
resources used to generate them, including people.
• Intransparency - it is difficult for competitors to imitate
these competencies quickly.
• Immobility - these capabilities and resources are difficult
to transfer.