Company Mission And Vision

COMPANY VISION,MISSION,AND GOALS

Presented By: Ravi Kumar IBS Jaipur

Benefits of “Strategic Thinking” and a “Strategic Approach” to Managing  Guides entire firm regarding “what it is we are trying to do and to achieve”  Makes managers more alert to “winds of change, new opportunities, and threatening developments  Unifies numerous strategy-related decisions and organizational efforts  Creates a proactive atmosphere  Promotes development of an evolving business model focused on bottom-line success  Provides basis for competing and achieving competitive advantage

HELPS A COMPANY PREPARE FOR THE FUTURE!

The Five Tasks of Strategic Management Task 1 Develop Vision and Mission

Revise as Needed

Task 2

Task 3

Task 4

Task 5

Set Goals & Objectives

Formulate Strategy to Achieve Goals & Objectives

Implement and Execute Strategy

Monitor, Evaluate, and Take Corrective Action

Revise as Needed

Improve/ Change

Improve/ Change

Recycle as Needed

Who Performs the Five Strategic Management Tasks? 

Senior Corporate Executives



Managers of Subsidiary Business Units



Functional Area Managers



Operating Managers

Strategic Role of a Board of Directors 

Critically appraise and ultimately approve strategic action plans



Evaluate strategic leadership skills of the CEO and candidates to succeed the CEO

Why is a Strategic Vision Important?  A managerial imperative exists to look beyond ? today and think strategically about – Impact of new technologies – How customer needs and expectations are changing – What it will take to outrun competitors – Which promising market opportunities ought to be

aggressively pursued

– External and internal factors driving what a company

needs to do to prepare for the future

VISION STATEMENT ABOUT A COMPANY’S LONG-TERM DIRECTION

MISSION DEFINES COMPANY’S BUSINESS

1. PRODUCT / MARKET 2. TERRITORY / GEOGRAPHY

Missions vs. Strategic Visions  A mission statement  A strategic vision focuses on current concerns a firm’s future business activities -business path -“who we are and “where we are going” – Markets to be what we do” pursued – Current product and – Future technologyservice offerings product-customer – Customer needs focus being served – Kind of company that – Technological and business capabilities management is trying to create

Example of Vision & Mission Intel Our vision: Getting to a billion connected computers worldwide, millions of servers, and trillions of dollars of e-commerce. Intel’s core mission is being the building block supplier to the Internet economy and spurring efforts to make the Internet more useful. Being connected is now at the center of people’s computing experience. We are helping to expand the capabilities of the PC platform and the Internet.

Simple Mission Statements Eastman Kodak We are in the picture business.

Wit Capital

(an Internet startup company) Our mission is to be the premier Internet investment banking firm focused on the offering and selling of securities to a community of online individual investors.

Examples of Mission Statements Otis Elevator Our mission is to provide any customer a means of moving people and things up, down, and sideways over short distances with higher reliability than any similar enterprise in the world.

Avis Rent-a-Car Our business is renting cars. Our mission is total customer satisfaction.

Example of Mission Statement (a unique grocery store chain) Our mission: To give our customers the best food and beverage values that they can find anywhere and to provide them with the information required for informed buying decisions. We provide these with a dedication to the highest quality of customer satisfaction delivered with a sense of warmth, friendliness, fun, individual pride, and company spirit.

Example of Mission Statement Ritz-Carlton Hotels The Ritz-Carlton Hotel is a place where the genuine care and comfort of our guests is our highest mission. We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm, relaxed yet refined ambiance. The Ritz-Carlton experiences enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.

Setting Goals & Objectives Second Task of Strategic Management

 Converts strategic vision and mission into specific performance targets  Creates yardsticks to track performance  Pushes firm to be inventive and focused on results  Helps prevent complacency and coasting

GOALS BROAD TARGETS

OBJECTIVES QUANTIFIED & TIME-BASED

Strategic Goals  Increase firm’s market share  Overtake key rivals on quality or customer service or product performance  Attain lower overall costs than rivals  Boost firm’s reputation with customers  Attain stronger foothold in international markets  Achieve technological superiority  Become leader in new product introductions  Capture attractive growth opportunities

What is Strategy?  A company’s strategy consists of the set of competitive moves and business approaches that management is employing to run the company  Strategy is management’s “game plan” to – Attract and please customers – Stake out a market position – Conduct operations – Compete successfully – Achieve organizational objectives

“Without a strategy the organization is like a ship without a rudder, going around in circles.” By: AZHAR KAZMI

“Quote”

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 &group to serve – Outcomes to achieve?

3. How do we get there?

serve?

The Hows That Define a Firm's Strategy 

How to grow the business



How to please customers

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How to outcompete rivals



How to respond to changing market conditions



How to manage each functional piece of the business and develop needed organizational capabilities



How to achieve goals & objectives

Strategy is HOW to . . .

A Company’s Strategy is Partly Planned and Partly Reactive y

Company Experiences, Know-how, Resource Strengths and Weaknesses, and Competitive Capabilities

teg a r t s ed n o d n Aba es r u t a e f

Planned Stra t

e

gy New initiativ es plus ong oing strategy fea tures contin ued from prior p eriods

c

to s n o i t reac e v i t p ces n a Ada t s m ircu c g n i g han

gy e t a r t S e Reactiv

Actual Company Strategy

Levels of Strategy-Making in a Diversified Company Corporate-Level Managers

Corporate Strategy Two-Way Influence

BusinessLevel Managers

Business Strategies Two-Way Influence

Functional Manager s Operating Managers

Functional Strategies Two-Way Influence

Operating Strategies

Levels of Strategy-Making in a Single-Business Company Executive-Level Managers

Business Strategy Two-Way Influence

Functional Managers

Functional Strategies

Two-Way Influence

Operating Managers

Operating Strategies

Networking of Missions, Goals/Objectives, and Strategies Level 1 CorporateLevel Managers

Level 2 Business-Level Managers

Level 3 Functional Managers

Level 4 Plant Managers, Lower-Level Supervisors

Corporate-wide Strategic Vision

Corporate Level Objectives

Corporate Level Strategy

Two-Way Influence

Two-Way Influence

Two-Way Influence

Business Level Strategic Vision

Business Level Objectives

Business Level Strategies

Two-Way Influence

Two-Way Influence

Two-Way Influence

Functional Missions

Functional Objectives

Functional Strategies

Two-Way Influence

Two-Way Influence

Two-Way Influence

Operating Missions

Operating Objectives

Operating Strategies

Factors Shaping the Choice of Company Strategy Social, political, regulatory and community factors

Competitive conditions and industry attractiveness

Company opportunities and threats to company’s well-being

Company’s Strategic Situation

Resource strengths, capabilities, and weaknesses

Influences of key executives

Shared values and company culture

 External Factors

Determine relevance of internal and external factors

Identify and evaluate alternatives

Craft the strategy

 Internal Factors

SWOT Analysis What to Look For Potential Resource Strengths

Potential Resource Weaknesses

Potential Company Opportunities

Potential External Threats

• Powerful strategy • Strong financial condition • Strong brand name image/reputation • Widely recognized market leader • Proprietary technology • Cost advantages • Strong advertising • Product innovation skills • Good customer service • Better product quality • Alliances or JVs

• No clear strategic direction • Obsolete facilities • Weak balance sheet; excess debt • Higher overall costs than rivals • Missing some key skills/competencies • Subpar profits • Internal operating problems . . . • Falling behind in R&D • Too narrow product line • Weak marketing skills

• Serving additional customer groups • Expanding to new geographic areas • Expanding product line • Transferring skills to new products • Vertical integration • Take market share from rivals • Acquisition of rivals • Alliances or JVs to expand coverage • Openings to exploit new technologies • Openings to extend brand name/image

• Entry of potent new competitors • Loss of sales to substitutes • Slowing market growth • Adverse shifts in exchange rates & trade policies • Costly new regulations • Vulnerability to business cycle • Growing leverage of customers or suppliers • Reduced buyer needs for product • Demographic changes

Company’s Strategy -- What to Look For Actions to diversify Actions to strengthen resources & capabilities

Actions to outcompete rivals Responses to changing external circumstances

Pattern of Actions That Define Strategy

How functional activities are managed Efforts to pursue new opportunities or defend against threats

Actions to alter geographic coverage Actions to merge or acquire rival companies

Actions to form strategic alliances and collaborative partnerships

THANK YOU

Have a Nice Evening