Description about Organisational context of decisions which include goals, strategies and objective

3. • Mission is the reason and justification for
the existence of firm and explains purpose
of the organisation
• Always defined in terms of the benefits the
firm provides to its customers
• Always concerned with future. The mission
should be so described that it remains
valid for at least some years to come.

4. • It is the unique character and purpose of the
organization which identifies the scope of its
activities which distinguishes it from others of
this type.
• It indicates the nature and scope of business
operations in terms of product/ services,
markets, customer and technology.
• It provides information to insider and outsider of
what the corporation stands for (nature and
scope) in terms of products/services, markets,
customers and technology. Purpose
(direction/what it should be), image and
character.

5. • Objectives are the ends that state specifically
how the goals shall be achieved. It includes all
management process. It should be concrete,
specific in contrast to goals that are
generalized. It should be quantifiable,
elaborated and expressed as operational.
• Once the mission and scope of a firm have
been defined by the top management, the
next step is to translate them into action
• This can be done by breaking down the
business mission into smaller, workable
objectives for managers down the line.

6. • It defines the organization relationship with
its environment
• It helps in pursuing its vision & mission in
long term.
• It provides basis for strategic decision
making .
• It provides standard for performance
appraisal.

7. • Derived from the objectives and are
intermediate time-bound targets which
are necessary for the achievement of
objectives
• Goals are time-bound and work-
oriented

8. •The specific path of action
chosen by a firm to
achieve its objectives is
termed as Strategy.

9. • A product/market scope: The specific products and
markets in which a firm operates and which define its
limits of activity.

10. • Competitive advantage: Those specific properties of
individual product/market that give the firm its unique
position its competitors.
• Distinctive competence: The specific organizational
strengths of a firm which help in achieving its objectives.
• Growth Factor: The changes the firm plans to make in
its product/market scope for ensuring its future growth.

11. 1. External- Internal Analysis
2. Generate Strategy Alternatives (Mkt-Pdt/ Current –
New Matrix)
3. Evaluating the Strategy Alternatives
4. Choice of strategy

12. • A ‘Policy’ is a predetermined course of action, which is
established to provide a proper guide toward achieve
organizational objectives .
• It should be formulated on facts & past experiences.
• It should be flexible enough.
• It should be framed to act as an aid & not as an obstacle

13. • Smooth functioning
• Ensures consistency
• Operational Success
• Minimize Costs
• Build a Learning Culture
• Motivation

14. Mission/Objectives/Strategy Policies/ Prog/ Procedures
Mainly concern of top management Concerned primarily with mioddle &
operating management level
Long term and have far reaching
consequences affecting the very
survival & growth of the firm
Short term, easier to change without
much adverse effect on organization’s
existence
Formulation is concerned with
environment and its concern is with
improvement of effectiveness of the
firm
Affect the internal structure &
operational activities and is concerned
with improvement in efficiency of the
firm

15. • Meant to organize & schedule repetitive activities which
constitute a complete set/ work assignment in the most
efficient manner e.g. Having an annual appraisal

16. • Refers to specific method & sequence by which an
activity is performed.e.g. Fire fighting programme
• Procedures should:
• Be based on past experience& facts
• Be as precise as possible
• Be understood by people who have to use them
• Have accord of people who have to use them