DATED: 31ST MAY’21

BUSINESS POLICY & STRATEGY

UNIT-2
STRATEGIC PLANNING

VISION STATEMENT
A vision statement describes what a company desires to achieve in the long-run, generally in
a time frame of five to ten years, or sometimes even longer. It depicts a vision of what the
company will look like in the future and sets a defined direction for the planning and
execution of corporate-level strategies.

Key Elements of a Good Vision Statement

While companies should not be too ambitious in defining their long-term goals, it is critical
to set a bigger and further target in a vision statement that communicates a company’s
aspirations and motivates the audience. Below are the main elements of an effective vision
statement:

 Forward-looking
 Motivating and inspirational
 Reflective of a company’s culture and core values
 Aimed at bringing benefits and improvements to the organization in the future
 Defines a company’s reason for existence and where it is heading

 A vision statement is a document that states the current and future objectives of an
organization. The vision statement is intended as a guide to help the organization make
decisions that align with its philosophy and declared set of goals.

 
 (MISSION STATEMENT)

It is also known as corporate mission. It is a fundamental unique purpose or the philosophy

that determines shape of the firm’s strategic posture. Formulation of mission statement is
required while developing a new business or reformulating direction for an ongoing
company.

The company mission is guide for future extension mission. It is described as the scope of
operations in terms of products, markets, clients etc. An organizational mission statement
indicates for what reasons and why the organization established and what contribution
made by it to the mission.

“Mission is the statement that defines the role the organization plays in the society and
purpose that anything the organization strives. The mission is the fundamental unique
purpose that sets it apart from the other firms in the same industry. It indicates the nature
and scope in terms of products, market and the technology.

The mission is a general enduring statement of the organization. The intent of which
embodies the decision makers business philosophy. IT implies the image which the
organization seeks to project.

EXAMPLE OF CORPORATE MISSION

Mission statement of ONGC

“To stimulate, continue and accerlate efforts to develop and maximize the contribution of
the energy sector to the economy of the country.”

Mission statement if Bank of Madurai

“A vibrant bank committed to excellence in performance through customer satisfaction”.

Elements of Corporate Mission

1. The fundamental concern for survival through sustained growth and profitability.
2. The public image to be sought.
3. The self concept that people affiliated should have of the firm which may include
management styles & work ethics.
 4. The basic product or service to be served.

Need for Mission

The need, importance and the reasons for making mission statements can be understood by
the following:

1. To ensure unaxinity of purpose within the organization.

2. To develop a basis or standards for allowing organizational resources.
3. To served as a focal point for those who can identify with the organizational purpose &
direction & to determine those cannot participate further in the organizational activities.
4. To specify the organizational purpose and the transactional of these purposes into goals
in such a way that costs, time and performance parameters can be assessed and controlled.
5. To provide a basis for motivating the use of the organization.
6. To facilitate the translation of objectives & goals into a work structure involving the
assignment of task to responsible person with in the organization.

OBJECTIVES

Objectives or goals or predetermined results towards which all the organized efforts are
directed. Objectives are multiple in natures and an organization wants to achieve several
economic & social objectives simultaneously in the organization like profit making.
Customer satisfaction development, creating the goodwill etc.

DEFINITIONS:-
1. “Objectives are the decisions, rules which enable the management to guide &
measure the performance towards its purpose.”
-[Link] Ansoff
2. “Objectives may be defined as the target for people seeks to achieve over various
time period.”
-R.L. Trewatha & M.G. Newport

CHARACTERISTICS OF BUSINESS OBJECTIVES:-

1. All the organizations has objectives for its existence, survival & acts.
2. Every organization sets or determines a bunch of objectives to achieve in a particular
time period.
3. Objectives are interdependent and supportive to the activity of the organization as
well as the managerial process.
4. Objectives also expressed the standards maintained by the organization.
5. Objectives should be clearly defined and specified which provide clean definition &
direction for work to the employees.
6. Objectives can be laid down for the each department, each position in the
organizational structure.
7. Objectives may be of two types that is the long term and short term objectives.
8. Objectives must be legitimate & in accordance with the social norms, legal
restrictions.

ROLE OF OBJECTIVES

1. Basis for decision Making:- Objectives leads to define the particular standards, plans,
policies for the organization. They also help in taking the strategic decisions in
different situations in the organization.
2. Standards for performance appraisal:- Objectives are sets for the organization as well
as for the individuals working in the organization. They also provide a guideline to
achieve is a particular time period which can be measured. It also helps to judge the
individual performance of the employees as well as the group performance of the
employees.
3. Define the environmental relationship:- By stating the objectives, an organization go
through with its environment which helps the organization to prepare favourable
policies for the smooth running of the organization.
4. Achieving the Mission:- The organization sets a number of objectives which supports
the mission of the organization. These objectives are directly concerned with the
mission of the organization.