MISSION, VISION, & OBJECTIVES 1

CHARTING COMPANYS
DIRECTION:
MISSION, VISION &
OBJECTIVES

STRAMA TEAM
 MISSION, VISION, & OBJECTIVES 2

BASIC MODEL OF STRATEGIC

MANAGEMENT (Wheelen and Hunger,
2012)
FOUR BASIC ELEMENTS

Environmental Strategy Strategy Evaluation &

Scanning Formulation Implementation Control
 MISSION, VISION, & OBJECTIVES 3

WHAT DOES THE STRATEGY-

MAKING, STRATEGY-
EXECUTING PROCESS
ENTAIL
5 TASKS
 MISSION, VISION, & OBJECTIVES 4

THE FIVE TASKS OF STRATEGIC

MANAGEMENT ( Thompson, Strickland and
Gamble,
Task 1 2010)
Task 2 Task 3 Task 4 Task 5

Develop a Monitor,
Craft a Implement
Strategic Evaluate,
Set Strategy and
Vision and Take
Objectives to Achieve Execute
and Corrective
Objectives Strategy
Mission Action

Revise as Revise as Improve/ Improve/ Recycle

Needed Needed Change Change as Needed
 MISSION, VISION, & OBJECTIVES 5

Thinking Strategically:
The Three Big Strategic Questions
1. Where are we now?
2. Where do we want to go?
Business(es) to be in and market positions
to stake out?
Buyer needs and groups to serve?
Outcomes to achieve?

3. How do we get there?

 MISSION, VISION, & OBJECTIVES 6

DEVELOPING A STRATEGIC VISION, A

MISSION, AND A SET OF CORE VALUES
Developing a Strategic Vision:
Delineates managements future aspirations
for the business to its stakeholders.
Provides directionwhere are we going.
Sets out the compelling rationale (strategic
soundness) for the firms direction.
Uses distinctive and specific language to set
the firm apart from its rivals.
 VMISSION, VISION, & OBJECTIVES 7

Characteristics of a Strategic Vision

A roadmap of a companys future
Future technology-product-customer focus
Geographic and product markets to pursue
Capabilities to be developed
Kind of company that management is trying
to create
 MISSION, VISION, & OBJECTIVES 8

CRAFTING A MISSION STATEMENT

The Mission Statement:
Uses specific language to give the firm its
own unique identity.
Describes the firms current business and
purposewho we are, what we do, and why
we are here.
Should focus on describing the companys
business, not on making a profitearning a
profit is an objective not a mission.
 MISSION, VISION, & OBJECTIVES 9

LINKING VISION MISSION AND

CORE VALUES
Core Values
Are the beliefs, traits, and behavioral norms that
employees are expected to display in conducting the
firms business and in pursuing its strategic vision and
mission.
Become an integral part of the firms culture and what
makes it tick when strongly espoused and supported
by top management.
Matched with the firms vision, mission, and strategy
contribute to the firms business success.
 MISSION, VISION, & OBJECTIVES 10

Missions vs. Strategic Visions

A mission statement
focuses on _ _ _ _ _ _ _
business activities
-- who we are and
what we do
Current product and
service offerings
Customer needs
being served
Technological and _______
business
capabilities Current
 MISSION, VISION, & OBJECTIVES 11

Missions vs. Strategic Visions

A strategic vision
concerns a firms _ _ _ _ _
_ business path
-- where we are going
Markets to be pursued
Future technology-
product-customer
focus
Kind of company that
management is ______
trying to create
Future
 MISSION, VISION, & OBJECTIVES 12

STAGE 2: SETTING OBJECTIVES

The Purposes of Setting Objectives:
To convert the vision and mission into specific,
measurable, timely performance targets.
To focus efforts and align actions throughout
the organization.
To serve as yardsticks for tracking a firms
performance and progress.
To provide motivation and inspire employees
to greater levels of effort.
 MISSION, VISION, & OBJECTIVES 13

THE NEED FOR SHORT TERM AND

LONG TERM OBJECTIVES
Short-Term Objectives:
Focus attention on quarterly and annual
performance improvements to satisfy near-
term shareholder expectations.
Long-Term Objectives:
Force consideration of what to do now to
achieve optimal long-term performance.
Stand as a barrier to an undue focus on short-
term results.
 MISSION, VISION, & OBJECTIVES 14

Types of Objectives Required

FINANCIAL OBJECTIVES
Outcomes focused on improving financial performance
STRATEGIC OBJECTIVES
Outcomes focused on improving long-term, competitive
business position

$
Examples of Financial Objectives
Grow earnings per share 15% annually
Boost
annual return on investment from 15% to
20% within three years
Increaseannual dividends per share
to stockholders by 5% each year

Maintain a positive cash flow every year

Examples of Strategic Objectives
Increase firms market share
Overtake key rivals on quality or customer
service or product performance
Attain lower overall costs than rivals
Boost firms reputation with customers
Attain stronger foothold in international markets
Achieve technological superiority
Become leader in new product introductions
Capture attractive growth opportunities
 MISSION, VISION, & OBJECTIVES 17

REFERENCES
Strategic Management & Business Policy: Achieving
Sustainability by Thomas L. Wheelen and David Hunger
12th Edition

Crafting and Executing Strategy by Thompson, Strikland,

Gamble 17th edition , 2010