The document outlines the concepts of strategic vision, mission, and objectives in business strategy, emphasizing their roles in guiding an organization’s direction and influencing decision-making. A strategic vision outlines a desired future state, while a mission defines the organization's purpose and operations. It also discusses the development and communication of these statements, highlighting their importance in aligning organizational values and enhancing employee commitment.

1. BBA 8th
Semester
MGT 208 Business Strategy
By Muna, Kewal and Himal

2. Unit – 2
Vision and Mission, Objectives and Strategy
Concept of Strategic Vision
The picture of desired future state of an organization that reflects a
firm’s values and aspiration.

3. Strategic Visions
Characteristics / Qualities of strategic visions
• Future focused
• Directional
• Clear
• Feasible
• Values based
• Challenging
• Unique
• Inspiring

4. Strategic Visions
Benefits of strategic vision
• Provides direction
• Guides for decisions
• Shapes strategy
• Sets priority
• Aligns people and activities
• Reflects core values and belief
• Empowers employees
• Brings change

5. Developing Strategic Vision
• A wider participation in development of strategic vision enhances
their effectiveness.
1. All the key factors such as internal strength and weakness, external
changes and trends, emerging needs and service expectations of
customers should be reviewed very carefully.
2. It should be external and market oriented and express in
inspiration……
3. All the managers from top to lower level should be involved in the ,
…… of developing the strategic vision. It enhances commitment
towards organization. It facilitates formulation and implementation
of strategy.

6. Developing Strategic Vision
4. The managers should be asked to review related literature on the …… and
prepare a strategic vision and mission statement for the organization.
5. The statements prepared by different managers should be merged …
single document and distribute the draft statements to all managers.
6. A meeting of the managers is held for modifications, addition and
deletions if needed and revise the documents.
7. As mentioned earlier, the input and support from the employees
….managers enriches strategy formulation, implementation and evaluate
activities. Hence, the development of strategic vision statement provides
opportunity for strategists to obtain needed support from all the
employees and managers.

7. Developing Strategic Vision
8. Some organizations use group discussions to develop and modify the
existing statement. An outside consultant or facilitator may also be
….manage the process and help draft the language.
9. After preparing the statements, decisions on how to communicate
…….managers, employees and external stakeholders are needed. A ……
may be prepared to explain the statement.

8. Communicating the strategic visions
The strategic vision should be well communicated to all managers,
employees, and external stakeholders. A clear communicated strategic
values provides long term direction to the organizations.

9. Mission
Concept of mission
• The reason of organizational existence defines the business in terms
of customers, employees, suppliers and the community.

10. Crafting a mission statement
• Define the purpose
• Make it broad in scope
• Precise
• Inspiring
• Distinctive

11. Importance of mission
• Brings uniformity
• Base of resource allocation
• Develops organizational culture
• Enhances employee ownership
• Defines the business
• Reflects the organizational responsibility
• Shows the operating philosophy

12. Difference between vision and mission statement
Basics of
difference
Vision statement Mission statement
Objectives Its aim is to show where the
organization wants to be in future.
Its aim to show how the organization
will get to where it wants to be.
Answer It answers the questions, “Where
do we aim to be?”
It answers the questions, “What do
we do? What makes us different?”
Time A vision statement talks about
future.
A mission statement talks about the
present leading to its future.
Change A vision statement does not change
even if the market conditions
change.
A mission statement changes with the
change in market conditions.
Functions It describes where the organization
sees itself years from now.
It lists the broad goals for which the
organization is formed.

13. Characteristics of mission
• Broad in scope
• Precise
• Inspiring
• Multi components
• Distinctive
• Components of strategy

14. Linking vision and mission with company values
There is a close linkage between vision, mission and company values.
The vision is the foundation for the mission. A mission statement
defines the business in terms of the customers, employees, suppliers
and its community. The value statement is the description of the
guiding principles of organizational activities . Company values provide
support for the vision and mission.

15. Objectives
Concept of objectives
• The expected outcomes of an organization are known as objectives. They
convert the strategic visions into specific performance targets. Objectives
shows the managerial commitment towards performance achievement.

16. Objectives
Components of objectives
• Specific
• Measurable
• Achievable
• Realistic
• Timely
• Motivating
• Flexible
• Hierarchical
• Congruent across departments

17. Crafting objectives
• Define vision, mission and values
• Environmental analysis
• Determination of strategic objective
• Formulation of financial objective

18. Levels of objectives
• Corporate level objectives
• Business level objectives
• Functional level objectives
• Individual level objectives

19. Role of objective in strategic management
• Objectives define the relationship of the organization with its
environment.
• Shows the relevancy of vision and mission of the organization.
• Provide the base of strategic decision making.
• Also provide foundation for the development of work standard.
• Helps develop distinctiveness and existence of an organization and
enhance organizational attractiveness.

20. Financial versus strategic objective
Financial objectives
• Annual percentage increases in sales
• Annual percentage increase in after tax profit
• Annual percentage increase in earning per share
• Percentage return on capital employed or equity
• Sufficient cash flows

21. Financial versus strategic objective
Strategic objectives
• Percentage increase in market share
• Achieving lower overall cost than the competitors
• Achieving technological leadership
• Superior product performance or quality or customer service

22. Differences between financial and strategic
objectives
Bases of
differences
Financial objectives Strategic objectives
Time They are the expected outcome
of an organization in short range
normally within or below 1 year.
They are the expected outcome
of an organization in long range
normally above 5 years.
Expression They are expressed in
quantitative terms.
They are expressed in qualitative
terms.
Support They support the strategic
objectives.
They support the strategic vision.
Scope They are narrower than the
strategic objectives.
They are broad in nature.

23. The End
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