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Strategy Formulation Notes

The document outlines the concepts of vision and mission statements in strategic formulation, defining vision as a company's long-term goal and mission as its current purpose. It lists key components of both statements, such as being vivid, focused, and feasible for vision, and customer-oriented, sustainable, and value-driven for mission. Additionally, it highlights common shortcomings in vision statements and provides quick example answers for better understanding.

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9 views2 pages

Strategy Formulation Notes

The document outlines the concepts of vision and mission statements in strategic formulation, defining vision as a company's long-term goal and mission as its current purpose. It lists key components of both statements, such as being vivid, focused, and feasible for vision, and customer-oriented, sustainable, and value-driven for mission. Additionally, it highlights common shortcomings in vision statements and provides quick example answers for better understanding.

Uploaded by

md masum
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Strategy Formulation - Easy Notes for Exam

1. Meaning of Vision
A vision is a short statement that says where the company wants to go in the future — its
long-term dream or goal.

Easy: "What we want to become."

2. Components of a Vision Statement


 Graphic / vivid — paints a clear picture of the future.
 Directional — shows the path or direction the firm will take.
 Focused — not trying to say too many things at once.
 Flexible — can adapt as things change.
 Feasible — realistic; possible to achieve.
 Desirable — people want to work for it / customers like it.
 Easy to communicate — short and simple to tell others.

3. Common Shortcomings in Vision Statements


 Vague or incomplete — unclear what it really means.
 Not forward-looking — talks about now, not the future.
 Too broad — tries to be everything to everyone.
 Bland or uninspiring — boring; doesn’t motivate.
 Not distinctive — sounds like every other company.
 Too reliant on superlatives — “best”, “number one” without proof.

4. Meaning of Mission
A mission explains what the organization does today — its purpose, who it serves, and how
it serves them.

Easy: "Why we exist and what we do."

5. Components of a Mission Statement


 Customer / market — who the company serves (customers, segments).
 Products / services — what the company offers.
 Geographic domain — where the company operates (local, national, global).
 Technology / methods — the main way or technology used to deliver
products/services.
 Concern for survival — shows it’s sustainable and will continue.
 Philosophy — core values and beliefs of the company.
 Self-concept — how the company sees itself (its strengths).
 Concern for public image — attention to reputation and social responsibility.
6. Quick Example Answers
 Q: Define vision.

A: Vision is a short statement about the long-term dream of the company — what it wants
to become in the future.

 Q: List 4 components of a good vision.

A: Vivid, directional, focused, feasible.

 Q: Define mission.

A: Mission explains the company’s purpose now — who it serves, what it sells, and how it
works.

 Q: List 4 components of a mission statement.

A: Customer/market, products/services, geographic domain, technology/methods.

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