SlideShare ist ein Scribd-Unternehmen logo
1 von 25
Unit II
Company Direction
Vision
• Vision states where the org. aspires to be in the
long run. Indicates a broad aspiration of the org.
• It answers the question, “where do we aim to
be?”
• Or, “What will the future look like? What will be
different?”
• It is a far-sighted view of an organization.
• Vision reflects the intention of the management
to lead the org.
• It provides a roadmap for organizational future
• It sees future but is the heart of the organization
Vision Statement
• A vision statement is a company's road map,
indicating both what the company wants to
become and guiding transformational initiatives
by setting a defined direction for the company's
growth.
• The Vision Statement focuses on the future; it is
a source of inspiration and motivation. Often it
describes not just the future of the org. but the
future of the industry or society in which the
organization hopes to effect change.
• It is stated in short and open-ended form
Vision Statement -Example
• Microsoft Corporation,
“To help individuals and businesses realize their full
potential.”
• World Bank,
“An Asia and Pacific region free of poverty”
• Chaudhary Group,
“To serve society, nation and the world”
• BB&T,
“The Best of The Best”
Benefits of Vision Statement
• A clear vision statement defines the direction the
organization is going and illustrates exactly what
an organization “stands for”.
• Other significant benefits for the people in an org.
• Benefit one: It acts as a unifying force, brings
together & has a positive impact on organizational
effectiveness
• Benefit two: It acts as a guide for employees
actions and decision making
• Benefit three: Another most significant benefit
that it can motivate and inspire employees
Mission
– Purpose/reason for the organization’s existence
– States not only what the co. is now, but what it
wants to become –management’s strategic vision of
the firm’s future.
– Alternatively, it tells who we are and what we do as
well as what we’d like to become.
– So, it sees present and future too and is head of an
org.
– Indicates intent to stake out a particular business
position
– In short, it is a basic/broad goal to be accomplished
jasbdr29@yahoo.com 6
Mission Statement
• A written declaration of an organization's core purpose
and focus that normally remains unchanged over time.
• The unique purpose that sets a company apart from others
– Tells what the org. providing to society
– Describes the firm’s product, market and technological areas
of emphasis
• Properly crafted mission statements
(1) serve as filters to separate what is important
from what is not,
(2) clearly state which markets and products will
be served and how, and
(3) communicate a sense of intended direction to
the entire organization.
Examples: Mission Statement
World Bank: To help our developing member countries reduce
poverty and improve their quality of life
IBM: The basic philosophy, spirit and drive of the business lies in
three concepts: respect for the individual, dedication to
service and a quest for superiority in all things.
McDonald: To offer the fast food customers, food prepared in
the same high quality manner world wide, tasty and
reasonably priced, delivered in a consistent, low key dĂŠcor
and friendly atmosphere.
Newport News Shipbuilding: We shall build good ships here -at
a profit if we can -at a loss if we must -but always good ships.
jasbdr29@yahoo.com 8
Benefits of Mission Statement
• It sets parameters and guidelines for how you continue your
org.
• Writing a mission statement forces you to think deeply about
your org.
• A mission statement helps you to uncover talents and
contributions that reveal your very reason for existence.
• Crafting a mission statement allows you to connect with your
own unique purpose and the profound satisfaction that
comes in fulfilling it.
• A mission statement helps you to address three important
questions:
– What org. is about?
– What do it stand for?
– What actions management is taking to exists and like to become?
Goals
• It is an open-ended statement of what one
wants to accomplish with no quantification of
what is to be achieved and no time criterion
for completion
• Example:
• Increase in profitability
• Increase in market share/market standing
Strategic Objectives
• Strategic Objective /Goal denotes the highest goals of
the organization
• Strategic objectives are used in strategic management.
• A Strategic Objective is a specific goal that you want to
achieve, with a clearly stated outcome and a
deadline. In other words, it is something that can be
tangibly achieved.
• Formulated for a longer period of time, not less than
three or five years.
• It is also one of the primary ‘goals’ of the organization,
underneath which many sub-goals will eventually align.
Strategic objectives are, in general, externally focused and
according to the management guru Peter Drucker, it falls into
eight major classifications:
(1) Market standing: desired share of the present and new
markets;
(2) Innovation: development of new goods and services, and of
skills and methods required to supply them;
(3) Human resources: selection and development of employees;
(4) Financial resources: identification of the sources of capital
and their use;
(5) Physical resources: equipment and facilities and their use;
(6) Productivity: efficient use of the resources relative to the
output;
(7) Social responsibility: awareness and responsiveness to the
effects on the wider community of the stakeholders;
(8) Profit requirements: achievement of measurable financial
well-being and growth.
Strategic Objectives -Example
Current customers
• Expand sales to existing customers.
• Increase customer retention.
• Achieve and maintain outstanding customer
service.
New customers
• Introduce existing products into a new market.
• To expand sales to the global marketplace.
• Improve our service approach for new and
existing customers.
Financial Objectives
• Financial Objective means the financial
requirements or goals that a company or an
organization plan for the future.
• In simple words it means to set a target how
to achieve profit and make more money. But
sometimes it also includes the amount of
money that is required for a specific goal, the
timeframe in which that task must be finished
and how to spend the money.
Financial Objectives
• To exceed $10 million sales in the next 10
years.
• To increase revenue by 10% annually.
• Financial Efficiency: To decrease expenses by
5%.
• Financial Efficiency: To increase net profit by
10% annually.
Financial vs Strategic Objectives
• In Financial Objectives an organisation only plans for
the financial issues of the business. These Objectives
only covers how much money needs to invest in the
company to achieve the required target. How to earn
more profit within the amount available for the
business and how to increase the profit ratio and
decrease the expenditures.
• While in Strategic Objectives all the aspects of the
business are taken into consideration. Planning to run
the business, to invest the money, to hire the
employers, marketing, deal with the competitors, etc.
• So we can say that Financial Objectives covers only
financial issues while Strategies Objectives deals with
all the aspects of business.
Financial vs Strategic Objectives
Financial Objectives
• Increase earning growth from 10 to 15% per year
• Boost return on equity investment from 15 to 20%
• Achieve and maintained a “AAA” bond rating
Strategic Objectives
• Up firm’s market share from 18 to 22%
• Overtake rivals on quality or customer service
• Attain lower overall cost than rival’s
• Become leader in new product introductions
• Achieve technological superiority
Goals Vs Objectives
(Clashing Views)
jasbdr29@yahoo.com 18
Objectives
Goals
Time Based
Specific
(20% on…)
Internal Focus
(Resource Utilization)
Measurement
(Quantitative)
Timeless
Broad, General
(Maximize Profit)
External Consideration
(Maintaining Market
Leadership)
Measurement
(Quantitatively
In relative terms)
Example: Goal -Increase in profitability
Objective –Increase 10% annual profit
Note: Objectives set at “SMART”
Strategic Intent
• Describes how the firm’s energy and resources are
channeled into a focused and unified overall goal.
• It is the strategic direction and destiny to be pursued
by the company.
• In the field of management and organizational
development, strategic intent is defined as a
compelling statement about where an organization is
going that conveys a sense of what that organization
wants to achieve in the long term.
Strategic Intent
• Strategic intent answers the question: “What exactly
are we trying to accomplish?”
• Strategic intent can provide a sense of direction, a
particular point of view about the long-term market or
competitive position the organization hopes to develop
and occupy.
• Strategic intent can provide a sense of discovery in
that members they promise of learning about other
organizations that operate in the same market,
adopting their best practices and avoiding pitfalls.
• Strategic intent can provide a sense of destiny, a
worthwhile goal around which energies can be focused
across the organization.
Policies
• Policies are comprehensive guidelines (or, set
rules) for decision making to achieve goals
• They specify general response to problem
situations
• It defines the area within which a decision is to
be made and ensures that decision will be
consistent with objectives
• Managers develop policies to make sure that
employees of the organization make decisions
and take actions that support the mission, goals
and strategies
• Business policies are the guidelines developed by
an organization to govern its actions.
They define the limits within which decisions
must be made. Business policy also deals with
acquisition of resources with which
organizational goals can be achieved.
• The foreign policy of the newly formed
government was to isolate itself from any foreign
influence and attack any influences that might
threaten the power of the government.
• The School's policy on missed classes is that you
must have a letter from a parent or a doctor
excusing you from class time.
Policies
Policies -Example
• Procurement of required raw materials only from local
suppliers
• Minimum balance of petty cash fund should maintain
upto Rs.1000/-
• Each employee is provided casual leave for 6 days and
sick leave of 6 days annually
• Every employee should present in the formal uniform
in the work place
• Government announces for not to establish any brick
factory in the Kathmandu valley
Short-Term Objectives
• Short-term objectives represent the goals an
organization sets that can be achieved within
the next six months or, at the outset, within
one year.
• An example of a short-term objective might
be “to increase sales by 10 percent annually”
• This is an easily measurable objective and
employees can be held directly accountable
for ensuring that it is met.
Long-Term Objectives
• Long-term objectives define any goal that has a
time frame exceeding one year.
• Business objectives that are normally considered
long term include developing a new product in
next two years, growing annual revenue and
developing a comprehensive marketing and
public relations strategy.
• Importantly, long-term objectives must not go on
forever. Long-term objectives must be realistic
and time bound.
• To exceed $10 million sales in the next 10 years.

Weitere ähnliche Inhalte

Was ist angesagt?

Strategic Alliances
Strategic AlliancesStrategic Alliances
Strategic Alliances
Mohamed Khalifa
 
Combination Strategy
Combination StrategyCombination Strategy
Combination Strategy
Jash Gada
 
Strategic choice
Strategic choiceStrategic choice
Strategic choice
bwire sedrick
 
International Business Environment
International Business EnvironmentInternational Business Environment
International Business Environment
Visakhapatnam
 
International promotion
International promotionInternational promotion
International promotion
Rew Sha
 

Was ist angesagt? (20)

Strategic management
Strategic managementStrategic management
Strategic management
 
Business level strategies
Business level strategiesBusiness level strategies
Business level strategies
 
Concept of international business environment
Concept of international business environmentConcept of international business environment
Concept of international business environment
 
Generic competitive strategies presentation
Generic competitive strategies presentationGeneric competitive strategies presentation
Generic competitive strategies presentation
 
Internationalization process
Internationalization processInternationalization process
Internationalization process
 
24398947 strategic-management-final-notes
24398947 strategic-management-final-notes24398947 strategic-management-final-notes
24398947 strategic-management-final-notes
 
International marketing
International marketingInternational marketing
International marketing
 
Export Marketing
Export MarketingExport Marketing
Export Marketing
 
Strategic Alliances
Strategic AlliancesStrategic Alliances
Strategic Alliances
 
Value chain analysis
Value chain analysisValue chain analysis
Value chain analysis
 
Corporate venturing
Corporate venturingCorporate venturing
Corporate venturing
 
International Business Dynamics module 2 by Nagarjun Reddy
International Business Dynamics module 2 by Nagarjun ReddyInternational Business Dynamics module 2 by Nagarjun Reddy
International Business Dynamics module 2 by Nagarjun Reddy
 
Combination Strategy
Combination StrategyCombination Strategy
Combination Strategy
 
Internal analysis strategic management
Internal analysis   strategic managementInternal analysis   strategic management
Internal analysis strategic management
 
Strategic choice
Strategic choiceStrategic choice
Strategic choice
 
International Business Environment
International Business EnvironmentInternational Business Environment
International Business Environment
 
International promotion
International promotionInternational promotion
International promotion
 
Business policy & Strategic Management for MBA
Business policy & Strategic Management for MBABusiness policy & Strategic Management for MBA
Business policy & Strategic Management for MBA
 
Business level strategy
Business level strategyBusiness level strategy
Business level strategy
 
International Promotion
International PromotionInternational Promotion
International Promotion
 

Ähnlich wie Unit ii company direction

New product development
New product developmentNew product development
New product development
Tushar Shelke
 
Strategic marketing PPT.pptx
Strategic marketing PPT.pptxStrategic marketing PPT.pptx
Strategic marketing PPT.pptx
BereketDesalegn5
 
Strategy
StrategyStrategy
Strategy
salman166
 
New strat thinking at pg
New strat thinking at pgNew strat thinking at pg
New strat thinking at pg
Reynaldo Halili
 

Ähnlich wie Unit ii company direction (20)

Responsibilty of top management
Responsibilty of top managementResponsibilty of top management
Responsibilty of top management
 
sm unit ii.pptx (1) (1).ppt
sm unit ii.pptx (1) (1).pptsm unit ii.pptx (1) (1).ppt
sm unit ii.pptx (1) (1).ppt
 
New product development
New product developmentNew product development
New product development
 
Strategic marketing PPT.pptx
Strategic marketing PPT.pptxStrategic marketing PPT.pptx
Strategic marketing PPT.pptx
 
Strategic Intent in Organization
Strategic Intent in OrganizationStrategic Intent in Organization
Strategic Intent in Organization
 
Strategic management and leadership_unit2_ vision and mission
Strategic management and leadership_unit2_ vision and missionStrategic management and leadership_unit2_ vision and mission
Strategic management and leadership_unit2_ vision and mission
 
CORPORATE STRATEGY PORTERS FIVE MODEL
CORPORATE STRATEGY PORTERS FIVE MODELCORPORATE STRATEGY PORTERS FIVE MODEL
CORPORATE STRATEGY PORTERS FIVE MODEL
 
Strategic Direction.ppt
Strategic Direction.pptStrategic Direction.ppt
Strategic Direction.ppt
 
New strategic thinking by OD Consultant Rey Halili
New strategic thinking by OD Consultant Rey HaliliNew strategic thinking by OD Consultant Rey Halili
New strategic thinking by OD Consultant Rey Halili
 
Strategic Management part_03_03
Strategic Management part_03_03Strategic Management part_03_03
Strategic Management part_03_03
 
Strategy
StrategyStrategy
Strategy
 
Chapter 4 Strategy Formulation.pptx
Chapter 4 Strategy Formulation.pptxChapter 4 Strategy Formulation.pptx
Chapter 4 Strategy Formulation.pptx
 
Scott droney - strategic planning and strategic management
Scott droney -  strategic planning and strategic managementScott droney -  strategic planning and strategic management
Scott droney - strategic planning and strategic management
 
Chapter 1 the nature of strategic management
Chapter 1   the nature of strategic managementChapter 1   the nature of strategic management
Chapter 1 the nature of strategic management
 
New strat thinking at pg
New strat thinking at pgNew strat thinking at pg
New strat thinking at pg
 
Strategic Management & Planning
Strategic Management & PlanningStrategic Management & Planning
Strategic Management & Planning
 
Strategic management
Strategic managementStrategic management
Strategic management
 
Organisational goals and objectives
Organisational goals and objectivesOrganisational goals and objectives
Organisational goals and objectives
 
02StrategicPlanning.ppt
02StrategicPlanning.ppt02StrategicPlanning.ppt
02StrategicPlanning.ppt
 
bps mid-term exam course SICSR
bps mid-term exam course SICSRbps mid-term exam course SICSR
bps mid-term exam course SICSR
 

KĂźrzlich hochgeladen

Jual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan Cytotec
Jual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan CytotecJual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan Cytotec
Jual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan Cytotec
ZurliaSoop
 
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al MizharAl Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
allensay1
 
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai KuwaitThe Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
daisycvs
 

KĂźrzlich hochgeladen (20)

Nashik Call Girl Just Call 7091819311 Top Class Call Girl Service Available
Nashik Call Girl Just Call 7091819311 Top Class Call Girl Service AvailableNashik Call Girl Just Call 7091819311 Top Class Call Girl Service Available
Nashik Call Girl Just Call 7091819311 Top Class Call Girl Service Available
 
Ooty Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Avail...
Ooty Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Avail...Ooty Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Avail...
Ooty Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Avail...
 
Paradip CALL GIRL❤7091819311❤CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDING
Paradip CALL GIRL❤7091819311❤CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDINGParadip CALL GIRL❤7091819311❤CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDING
Paradip CALL GIRL❤7091819311❤CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDING
 
PARK STREET 💋 Call Girl 9827461493 Call Girls in Escort service book now
PARK STREET 💋 Call Girl 9827461493 Call Girls in  Escort service book nowPARK STREET 💋 Call Girl 9827461493 Call Girls in  Escort service book now
PARK STREET 💋 Call Girl 9827461493 Call Girls in Escort service book now
 
Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1
 
Buy gmail accounts.pdf buy Old Gmail Accounts
Buy gmail accounts.pdf buy Old Gmail AccountsBuy gmail accounts.pdf buy Old Gmail Accounts
Buy gmail accounts.pdf buy Old Gmail Accounts
 
Cannabis Legalization World Map: 2024 Updated
Cannabis Legalization World Map: 2024 UpdatedCannabis Legalization World Map: 2024 Updated
Cannabis Legalization World Map: 2024 Updated
 
Jual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan Cytotec
Jual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan CytotecJual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan Cytotec
Jual Obat Aborsi ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan Cytotec
 
Berhampur 70918*19311 CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDING
Berhampur 70918*19311 CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDINGBerhampur 70918*19311 CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDING
Berhampur 70918*19311 CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDING
 
Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024
 
PHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation Final
 
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
 
Falcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business PotentialFalcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business Potential
 
Putting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptxPutting the SPARK into Virtual Training.pptx
Putting the SPARK into Virtual Training.pptx
 
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al MizharAl Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
Al Mizhar Dubai Escorts +971561403006 Escorts Service In Al Mizhar
 
Pre Engineered Building Manufacturers Hyderabad.pptx
Pre Engineered  Building Manufacturers Hyderabad.pptxPre Engineered  Building Manufacturers Hyderabad.pptx
Pre Engineered Building Manufacturers Hyderabad.pptx
 
Kalyan Call Girl 98350*37198 Call Girls in Escort service book now
Kalyan Call Girl 98350*37198 Call Girls in Escort service book nowKalyan Call Girl 98350*37198 Call Girls in Escort service book now
Kalyan Call Girl 98350*37198 Call Girls in Escort service book now
 
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai KuwaitThe Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
 
Escorts in Nungambakkam Phone 8250092165 Enjoy 24/7 Escort Service Enjoy Your...
Escorts in Nungambakkam Phone 8250092165 Enjoy 24/7 Escort Service Enjoy Your...Escorts in Nungambakkam Phone 8250092165 Enjoy 24/7 Escort Service Enjoy Your...
Escorts in Nungambakkam Phone 8250092165 Enjoy 24/7 Escort Service Enjoy Your...
 
Chennai Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Av...
Chennai Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Av...Chennai Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Av...
Chennai Call Gril 80022//12248 Only For Sex And High Profile Best Gril Sex Av...
 

Unit ii company direction

  • 2. Vision • Vision states where the org. aspires to be in the long run. Indicates a broad aspiration of the org. • It answers the question, “where do we aim to be?” • Or, “What will the future look like? What will be different?” • It is a far-sighted view of an organization. • Vision reflects the intention of the management to lead the org. • It provides a roadmap for organizational future • It sees future but is the heart of the organization
  • 3. Vision Statement • A vision statement is a company's road map, indicating both what the company wants to become and guiding transformational initiatives by setting a defined direction for the company's growth. • The Vision Statement focuses on the future; it is a source of inspiration and motivation. Often it describes not just the future of the org. but the future of the industry or society in which the organization hopes to effect change. • It is stated in short and open-ended form
  • 4. Vision Statement -Example • Microsoft Corporation, “To help individuals and businesses realize their full potential.” • World Bank, “An Asia and Pacific region free of poverty” • Chaudhary Group, “To serve society, nation and the world” • BB&T, “The Best of The Best”
  • 5. Benefits of Vision Statement • A clear vision statement defines the direction the organization is going and illustrates exactly what an organization “stands for”. • Other significant benefits for the people in an org. • Benefit one: It acts as a unifying force, brings together & has a positive impact on organizational effectiveness • Benefit two: It acts as a guide for employees actions and decision making • Benefit three: Another most significant benefit that it can motivate and inspire employees
  • 6. Mission – Purpose/reason for the organization’s existence – States not only what the co. is now, but what it wants to become –management’s strategic vision of the firm’s future. – Alternatively, it tells who we are and what we do as well as what we’d like to become. – So, it sees present and future too and is head of an org. – Indicates intent to stake out a particular business position – In short, it is a basic/broad goal to be accomplished jasbdr29@yahoo.com 6
  • 7. Mission Statement • A written declaration of an organization's core purpose and focus that normally remains unchanged over time. • The unique purpose that sets a company apart from others – Tells what the org. providing to society – Describes the firm’s product, market and technological areas of emphasis • Properly crafted mission statements (1) serve as filters to separate what is important from what is not, (2) clearly state which markets and products will be served and how, and (3) communicate a sense of intended direction to the entire organization.
  • 8. Examples: Mission Statement World Bank: To help our developing member countries reduce poverty and improve their quality of life IBM: The basic philosophy, spirit and drive of the business lies in three concepts: respect for the individual, dedication to service and a quest for superiority in all things. McDonald: To offer the fast food customers, food prepared in the same high quality manner world wide, tasty and reasonably priced, delivered in a consistent, low key dĂŠcor and friendly atmosphere. Newport News Shipbuilding: We shall build good ships here -at a profit if we can -at a loss if we must -but always good ships. jasbdr29@yahoo.com 8
  • 9. Benefits of Mission Statement • It sets parameters and guidelines for how you continue your org. • Writing a mission statement forces you to think deeply about your org. • A mission statement helps you to uncover talents and contributions that reveal your very reason for existence. • Crafting a mission statement allows you to connect with your own unique purpose and the profound satisfaction that comes in fulfilling it. • A mission statement helps you to address three important questions: – What org. is about? – What do it stand for? – What actions management is taking to exists and like to become?
  • 10. Goals • It is an open-ended statement of what one wants to accomplish with no quantification of what is to be achieved and no time criterion for completion • Example: • Increase in profitability • Increase in market share/market standing
  • 11. Strategic Objectives • Strategic Objective /Goal denotes the highest goals of the organization • Strategic objectives are used in strategic management. • A Strategic Objective is a specific goal that you want to achieve, with a clearly stated outcome and a deadline. In other words, it is something that can be tangibly achieved. • Formulated for a longer period of time, not less than three or five years. • It is also one of the primary ‘goals’ of the organization, underneath which many sub-goals will eventually align.
  • 12. Strategic objectives are, in general, externally focused and according to the management guru Peter Drucker, it falls into eight major classifications: (1) Market standing: desired share of the present and new markets; (2) Innovation: development of new goods and services, and of skills and methods required to supply them; (3) Human resources: selection and development of employees; (4) Financial resources: identification of the sources of capital and their use; (5) Physical resources: equipment and facilities and their use; (6) Productivity: efficient use of the resources relative to the output; (7) Social responsibility: awareness and responsiveness to the effects on the wider community of the stakeholders; (8) Profit requirements: achievement of measurable financial well-being and growth.
  • 13. Strategic Objectives -Example Current customers • Expand sales to existing customers. • Increase customer retention. • Achieve and maintain outstanding customer service. New customers • Introduce existing products into a new market. • To expand sales to the global marketplace. • Improve our service approach for new and existing customers.
  • 14. Financial Objectives • Financial Objective means the financial requirements or goals that a company or an organization plan for the future. • In simple words it means to set a target how to achieve profit and make more money. But sometimes it also includes the amount of money that is required for a specific goal, the timeframe in which that task must be finished and how to spend the money.
  • 15. Financial Objectives • To exceed $10 million sales in the next 10 years. • To increase revenue by 10% annually. • Financial Efficiency: To decrease expenses by 5%. • Financial Efficiency: To increase net profit by 10% annually.
  • 16. Financial vs Strategic Objectives • In Financial Objectives an organisation only plans for the financial issues of the business. These Objectives only covers how much money needs to invest in the company to achieve the required target. How to earn more profit within the amount available for the business and how to increase the profit ratio and decrease the expenditures. • While in Strategic Objectives all the aspects of the business are taken into consideration. Planning to run the business, to invest the money, to hire the employers, marketing, deal with the competitors, etc. • So we can say that Financial Objectives covers only financial issues while Strategies Objectives deals with all the aspects of business.
  • 17. Financial vs Strategic Objectives Financial Objectives • Increase earning growth from 10 to 15% per year • Boost return on equity investment from 15 to 20% • Achieve and maintained a “AAA” bond rating Strategic Objectives • Up firm’s market share from 18 to 22% • Overtake rivals on quality or customer service • Attain lower overall cost than rival’s • Become leader in new product introductions • Achieve technological superiority
  • 18. Goals Vs Objectives (Clashing Views) jasbdr29@yahoo.com 18 Objectives Goals Time Based Specific (20% on…) Internal Focus (Resource Utilization) Measurement (Quantitative) Timeless Broad, General (Maximize Profit) External Consideration (Maintaining Market Leadership) Measurement (Quantitatively In relative terms) Example: Goal -Increase in profitability Objective –Increase 10% annual profit Note: Objectives set at “SMART”
  • 19. Strategic Intent • Describes how the firm’s energy and resources are channeled into a focused and unified overall goal. • It is the strategic direction and destiny to be pursued by the company. • In the field of management and organizational development, strategic intent is defined as a compelling statement about where an organization is going that conveys a sense of what that organization wants to achieve in the long term.
  • 20. Strategic Intent • Strategic intent answers the question: “What exactly are we trying to accomplish?” • Strategic intent can provide a sense of direction, a particular point of view about the long-term market or competitive position the organization hopes to develop and occupy. • Strategic intent can provide a sense of discovery in that members they promise of learning about other organizations that operate in the same market, adopting their best practices and avoiding pitfalls. • Strategic intent can provide a sense of destiny, a worthwhile goal around which energies can be focused across the organization.
  • 21. Policies • Policies are comprehensive guidelines (or, set rules) for decision making to achieve goals • They specify general response to problem situations • It defines the area within which a decision is to be made and ensures that decision will be consistent with objectives • Managers develop policies to make sure that employees of the organization make decisions and take actions that support the mission, goals and strategies
  • 22. • Business policies are the guidelines developed by an organization to govern its actions. They define the limits within which decisions must be made. Business policy also deals with acquisition of resources with which organizational goals can be achieved. • The foreign policy of the newly formed government was to isolate itself from any foreign influence and attack any influences that might threaten the power of the government. • The School's policy on missed classes is that you must have a letter from a parent or a doctor excusing you from class time. Policies
  • 23. Policies -Example • Procurement of required raw materials only from local suppliers • Minimum balance of petty cash fund should maintain upto Rs.1000/- • Each employee is provided casual leave for 6 days and sick leave of 6 days annually • Every employee should present in the formal uniform in the work place • Government announces for not to establish any brick factory in the Kathmandu valley
  • 24. Short-Term Objectives • Short-term objectives represent the goals an organization sets that can be achieved within the next six months or, at the outset, within one year. • An example of a short-term objective might be “to increase sales by 10 percent annually” • This is an easily measurable objective and employees can be held directly accountable for ensuring that it is met.
  • 25. Long-Term Objectives • Long-term objectives define any goal that has a time frame exceeding one year. • Business objectives that are normally considered long term include developing a new product in next two years, growing annual revenue and developing a comprehensive marketing and public relations strategy. • Importantly, long-term objectives must not go on forever. Long-term objectives must be realistic and time bound. • To exceed $10 million sales in the next 10 years.