ESTABLISHING

DIRECTION
1

If you dont know where

you are going, any road
will take you there.
Cheshire Cat to Alice
Lewis Carroll, Alice in
Wonderland

If you articulate a vision

that makes people passionate,
there are so many amazing things
you can do.
Dr. Sophie Vandebroek
Xerox Corporation

THE STRATEGY-MAKING, STRATEGY-EXECUTING

PROCESS

DEVELOPING A STRATEGIC VISION

A Strategic Vision

Mission Statement
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STRATEGIC VISION VS.

MISSION

A strategic vision
concerns a firms future
business path - where
we are going

The mission
statement of a firm
focuses on its present
business purpose who we are and
what we do

Vision
'To

be a sustainable, quality-driven company that

ensures the continuing prosperity of all its
stakeholders.

Mission Statement
'Our

goals are to achieve customer satisfaction, and to

build and defend the first position as market leader in
every category in which we compete. In land
transportation, we provide reliable, high quality and
superior services with the efficient use of resources,
and we do it as a team.
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Vision
To become a leading InfoCom player in the region
Telkom has strong will to become a leading
Information and Communication Player in SouthEast Asia, Asia and to all over Asia Pacific.
Mission
1. To Provide One Stop InfoCom Services with
Excellent Quality and Competitive Price
2. To Be the Role Model as the Best Managed
Indonesian Corporation
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VISI & MISI

UNIVERSITAS GADJAH MADA

Visi
Menjadi universitas riset kelas dunia yang unggul, mandiri,
bermartabat, dan dengan dijiwai Pancasila mengabdi kepada
kepentingan dan kemakmuran bangsa.
Misi
Misi Umum :
Melaksanakan pembelajaran dan pengabdian berbasis
riset.
Misi Khusus :
Meningkatkan kegiatan pendidikan, penelitian dan
pengabdian kepada masyarakat berkelas dunia,
beridentitas kerakyatan serta membangun sosio-budaya
Indonesia
Menuntaskan transisi UGM menjadi universitas yang
mandiri dan mempunyai tata kelola yang baik (Good
University Governance).

MEDCO ENERGY COMPANY

(ANNUAL REPORT 2006)

Vision:
The Energy Company of Choice
Mission:
To develop energy resource potentials into profitable investment portfolios

2.

4.

Strategy:
1.
Replace or add reserves through acquisition and exploration
Replace and increase production volumes through the development of
reserves
3.
Development new market for uncommitted gas
Maintain financial flexibility and conservative financial structure and
cost control
5.
Build strategic alliances with international operators
6.
Ensure support from local community
7.
Focus on maintaining Good Corporate Governance standards 10

VISION SLOGANS: AN INSPIRATIONAL

STATEMENT
Levi Strauss & Company
We will clothe the world by marketing the most appealing and
widely worn casual clothing in the world.

Pegadaian
Mengatasi masalah tanpa masalah
Toshiba
Leading Innovation
Toyota
Moving forward

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CHARACTERISTICS OF AN
GOOD VISION STATEMENT
Graphic

Directional
Focused
Flexible

Feasible

Desirable
Easy

to communicate
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COMMON SHORTCOMINGS IN
VISION STATEMENT
Vague

or incomplete
Not forward-looking
Too broad
Bland or uninspiring
Not distinctive
Too reliant or superlative
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DISCUSSION

What is the importance of strategic vision

for a company?

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ROLE OF A STRATEGIC VISION

Give

the organization a sense of

direction,
Create a committed enterprise
Inform companys stakeholders
Be a reference point to make strategic
decisions

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COMPANY VALUES
Beliefs,

traits, and ways of doing things that

management has determined should guide the
pursuit of its vision and strategy

The

desired character, identity, and behavioral

norms-the values become the companys
genetic makeup, its DNA
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EXAMPLE OF CORE VALUES

Disney:
Nurturing/promulgation of wholesome American values
Creativity, dreams and imagination
Fanatical attention to consistency and detail
Preservation and control of the Disney Magic

Sony:
Elevation of the Japanese culture and national status
Being a pioneer not following others; doing the
impossible
Encouraging individual ability and creativity
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COMPANY VALUES
Customer
commitment

Quality and
Integrity

Respect
for people

Teamwork

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2-18

DISCUSSION:

What are the importance of company

value for the company?

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CHANGES FOR A NEW

STRATEGIC DIRECTION:
STRATEGIC INFLECTION
POINTS

PT POS INDONESIA
NOKIA
INTEL

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Visi
2009 - 2010 :Integrated mail, logistic &
services infrastructure

financial

2011 - 2013 :Indonesias leader in the mail

financial services

logistics &

2014 - 2018 :ASEAN Champion of Postal Industries

Misi
Pos Indonesia menyediakan solusi handal dalam mail,
logistik dan jasa keuangan dengan menggunakan jejaring
bisnis dan infrastruktur terluas dan terpadu serta
mengembangkan hubungan kolaboratif.

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Produk Pos
Kiriman

Internasional

Filateli
Hybrid-Mail
Ritel
Logistik

Keuangan

Paket

Pos

Surat

Pos

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THE STORY OF NOKIA - A CENTURY AND A HALF OF INNOVATION,

FROM A RIVERSIDE PAPER MILL IN SOUTHWESTERN FINLAND
TO A GLOBAL TELECOMMUNICATIONS LEADER.

From roots in paper, rubber, and cables, in just over 100

years Nokia becomes a powerful industrial conglomerate...

The newly formed Nokia Corporation is ideally positioned for a

pioneering role in the early evolution of mobile
communications...

As mobile phone use booms, Nokia makes the sector its core business.
By the turn of the century, the company is the world leader...

Nokia sells its billionth mobile phone as the third generation of

mobile technology emerges...

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CHANGES FOR A NEW STRATEGIC DIRECTION:

INTELS STRATEGIC INFLECTION POINTS
Prior

to mid-1980s:
Focus on memory chips
Then, facing competition from Japanese
manufacturers with lower-prices strategy
Starting in mid-1980s
Although the former business contributed for 70%
of Intel revenue, the company switch to be the
preeminent supplier of microprocessors to the PC
industry.
1998
Focuses on installing million of servers and
building internet infrastructure and serve as a
worldwide communication medium
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SETTING OBJECTIVES
Purpose

of setting objectives

Converts

vision into specific performance

targets
Creates milestone to track performance- at the
end as a parameter to the achievement of the
established vision

Well-stated

objectives are

Quantifiable
Measurable
Contain

a deadline for achievement

how much of what kind of

performance by when

Spell-out

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TYPES OF OBJECTIVES
REQUIRED

Financial Objectives
Outcomes focused
on improving financial
performance

Strategic Objectives

Outcomes focused on improving competitive

vitality and future business position (market)

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EXAMPLES: FINANCIAL
OBJECTIVES
Annual revenue growth of X%
X % increase in after-tax profits annual
Earnings per share growth of X% annually
Annual dividend increases of X%
Profit margins of X%
X% return on capital employed (ROCE)
Annual stock price increases that average X% over time
Strong bond and credit ratings
Sufficient internal cash flows to fund 100% of new
capital investment
Stable earnings during periods of recession

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EXAMPLES: STRATEGIC
OBJECTIVES
Winning an X% market share within 3 years
Achieving lower overall costs than rivals
Overtaking key competitors on product performance or
quality or customer service within 2 years
Deriving X% of revenues from sale of new products
introduced in past 5 years
Being the recognized industry leader in product
innovation and/or technological know-how
Having a wider product line than rivals
Consistently getting new or improved products to
market ahead of rivals
Having stronger national or global sales and
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distribution capabilities than rivals

MCDONALDS FINANCIAL AND STRATEGIC OBJECTIVES

Place more emphasis on delivering an

exceptional customer experience
Add approximately 350 net
new McDonalds restaurants
Reduce general and administrative
spending as a percent of total revenues
Achievements
Systemwide sales and revenue growth of 3-5%
Annual operating income growth of 6-7%
Annual returns on incremental invested
capital in high teens

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H. J. HEINZ COMPANYS FINANCIAL

AND STRATEGIC OBJECTIVES

Achieve 4-6% sales growth, 7-10% growth in operating income,

EPS in the range of $2.35 to $2.45, and operating free cash flow of
$900 million to $1 billion in fiscal 2006
Pay dividends equal to 45-50% of earnings
Increase focus on companys 15 power brands and give top
resource priority to those brands with number one and two
market positions
Continue to introduce new and improved food products
Add to the Heinz portfolio of brands by acquiring
companies with brands that complement existing brands
Increase sales in Russia, Indonesia, China, and India
by 50% in fiscal year 2006 to roughly 6% of total sales
By end of fiscal 2008, derive approximately 50% of sales and
profits from North America, 30% from Europe, and 20% from all
other markers
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DISCUSSION:
The relationship between strategic
objectives and financial objectives

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GOOD STRATEGIC PERFORMANCE IS THE KEY

TO BETTER FINANCIAL PERFORMANCE
Current financial results are lagging
indicators reflecting results of past decisions
and action

Good

strategic performance is thus a

leading indicator of a companys
capability to deliver improved
future financial performance
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A HIERARCHY: CORPORATE
LEVEL AND BUSINESS
LEVEL
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Levels of Strategy-Making in a Diversified

Company

Corporate-Level
Managers

Corporate
Strategy
Two-Way Influence

Business-Level
Managers

Business Strategies
Two-Way Influence

Functional
Managers

Functional Strategies
Two-Way Influence

Operating
Managers

Operating Strategies

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35

A COMPANYS STRATEGY-MAKING
HIERARCHY

Corporate Strategy
to diversify into different industries;
to boost the combined performance of the companys different
businesses;
to capture cross-business synergies;
to establish investment priorities and steering corporate resources into
the most attractive businesses
Business Strategy
to concern with the actions and approaches crafted to produce
successful performance in one specific line of business
Functional Strategy
to concerns the game plan for a function, activity, or process within a
business; is usually orchestrated by the functional head and involves
Operating Strategy
Concern on managing key operating units or strategically-relevant
operating activities (such as advertising, supply chain activities, internet
sales)
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MISSION AND VISION ON

REFLECTION
1.
2.

3.

4.

Are mission or vision important for a

company?
Without one or both of them, can the
company be success or survive (in the
competition)?
When a company already have mission,
do you think the company does not need
vision anymore and oppositely
What is the importance of mission for
vision?

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