Strategy formulation: Vision, Mission and Purpose

1. Strategy Formulation-
Vision, Mission and Purpose

2.  A vision is more dreamt of than it is. Vision Statement is permanent
statement of a company. Vision is future aspirations that lead to an
inspiration. It defines the very purpose of existence of a company.
 The vision of a company is a direction for action for employees. The
essence of a vision is forward looking view of what an organisation wishes
to become.
 Kotler(1990) defines Vision as “ a description of an enterprise. (an
organisation, corporate culture, a business, a technology, an activity) in
future”.
 El-namaki(1992) defines vision as a “mental perception of the kind of
environment an individual, or an organisation, aspires to create within a
broad time horizon and underlying conditions for the actualisation of this
perception”
 Miller and Dess(1996) defines vision as “category of intentions that are
broad, all inclusive, and forward thinking”
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3. Characteristics of a Vision Statement
 Inspiring and exhilarating.
 It represents, a continuity, a step, a jump ahead to dream what it is to be.
 Creation of common identity and share sense of purpose.
 Competitive, original and unique and practical.
 Foster risk taking and experimentation.
 Foster long term thinking.
 A vision is a statement about what your organization wants to become.
 It should resonate with all members of the organization and help them
feel proud, excited, and part of something much bigger than themselves.
 A vision should stretch the organization’s capabilities and image of itself.
It gives shape and direction to the organization’s future.
 Visions range in length from a couple of words to several pages.
 Shorter vision statements is recommended because people will tend to
remember their shorter organizational vision.
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4. Vision Statement
 Vision Statement Samples:
 "Year after year, Westin and its people will be regarded as the best and most
sought after hotel and resort management group in North America." (Westin
Hotels)
 "To be recognized and respected as one of the premier associations of HR
Professionals." (HR Association of Greater Detroit)
 Vision Statement of “TATA STEEL”
“TATA Steel enters the new millennium with the confidence of learning,
knowledge based and happy organisation. We will establish ourselves as a
supplier of choice by delighting our customers with our service and
products. In the coming decade, we will become the most cost competitive
steel plant and so serve the community and the nation”.
 Vision Statement of Farm Fresh Produce (North Carolina)
 “We help the families of Main Town live happier and healthier lives by
providing the freshest, tastiest and most nutritious local produce: From
local farms to your table in under 24 hours.”
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5. Developing a Vision Statement
 The vision statement includes vivid description of the
organization as it effectively carries out its operations.
 Developing a vision statement can be quick culture-specific,
i.e., participants may use methods ranging from highly
analytical and rational to highly creative and divergent, e.g.,
focused discussions, divergent experiences around
daydreams, sharing stories, etc. Therefore, visit with the
participants how they might like to arrive at description of
their organizational vision.
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6.  Developing the vision can be the most enjoyable part of
planning, but the part where time easily gets away from you
 Note that originally, the vision was a compelling description
of the state and function of the organization once it had
implemented the strategic plan, i.e., a very attractive image
towards which the organization was attracted and guided by
the strategic plan. Recently, the vision has become more of a
motivational tool, too often including highly idealistic
phrasing and activities which the organization cannot
realistically aspire.

7. Strategic Vision
 Strategic Vision is a road map showing the route a company intends to
take in developing and strengthening the business. It defines Company’s
destination and provides rational for going there. It culminates in to a
Mission Statement. Strategic Vision points an Organisation in a particular
direction, charts a strategic path to follow for future and moulds the
organisation’s identity.
 Strategic Vision is different from Mission Statement: Strategic Vision
deals with where we are going, where as Mission Statement deals with
Company’s present business scope and purpose.
 A company Mission is guided by the buyer’s needs it seeks to satisfy, the
customer groups and market segments it is endeavouring to serve, and the
resources and technologies that it is deploying in trying to please customers
and achieve a Market and Industry position.
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8. Example of Strategic Vision
 “The San Antonio Express News” developed this Strategic
Vision,
 "EXPAND” our customer base and enhance the franchise by
pursuing multimedia opportunities.
 “DELIVER” an award-winning level of journalistic excellence,
building public interest, trust and pride.
 “PROVIDE” vigorous community leadership and support.
 “INSTILL” an environment of internal and external excellence
in customer service.
 “EMPOWER” and recognize each employee's unique
contribution.
 “ACHIEVE” the highest standards of quality.
 “IMPROVE” financial strength and profitability."
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9. Mission
 Thompson(1997) defines Mission as “the essential purpose of the
organisation, concerning particularly, why it is in existence, the nature of
businesses it is in, and the customers it seeks to serve and satisfy”
 Hunger and Wheelen(1999) say that “mission is the purpose and reason
for the organisation’s existence”
 Mission statements could be formulated on the basis of vision that an
entrepreneur decides on in the initial stages.
 A business mission helps to evolve an executive action.
 Mission of organisation is what it is and why it exists. It represents
common purpose which the entire organisation shares and pursues. It is a
guiding principle.
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10. Mission Statement
 Mission of a company is expressed in terms of products and
geographical scope. It includes a methodology of attaining the desired
goal in vision. It defines the competitive strength of a company and it
emanates from corporate vision and strategic posture of a company.
 Thus the mission of a business is a statement, a build-up philosophy of
its current and future expected position with regards to its products,
market leadership.
 Mission is statement which defines the role of organisation plays in a
society.
 The corporate mission is growth ambition of the firm.
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11. Mission
Characteristics of a Mission Statement
 It should be feasible & It should be precise.
 It should be clear & It should be distinctive.
 It should be motivating.
 It should be indicative of major component of strategy
 It should be indicative of how objectives are to be accomplished.
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12. Mission Statement Creation
 To create your mission statement, first identify your
organization’s “winning idea”.
This is the idea or approach that will make your organization
stand out from its competitors, and is the reason that customers
will come to you and not your competitors.
 Next identify the key measures of your success. Make sure you
choose the most important measures (and not too many of
them!)
 Combine your winning idea and success measures into a
tangible and measurable goal.
 Refine the words until you have a concise and precise statement
of your mission, which expresses your ideas, measures and
desired result.
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13. Contents of a Mission Statement
1. At its most basic; the mission statement describes the overall
purpose of the organization.
2. When wording the mission statement, consider the
organization's products and services.
3. Should describe markets, values, and concern for public image,
and maybe priorities of activities for survival.
4. Consider any changes that may be needed in wording of the
mission statement because of any new suggested strategies
during a recent strategic planning process.
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14. Mission Statements
5. Ensure that wording of the mission is to the extent that
management and employees can infer some order of priorities
in how products and services are delivered.
6. Does the mission statement include sufficient description that
the statement clearly separates the mission of the organization
from other organizations?
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15.  Mission Statement of Ranabaxy
“To become a $ 1 Billion research based global (International)
company pharmaceutical company”
 The mission statement of Farm Fresh Produce is:
“To become the number one produce store in Main Street by
selling the highest quality, freshest farm produce, from farm to
customer in under 24 hours on 75% of our range and with 98%
customer satisfaction.”
 "Our goal is simply stated. We want to be the best service
organization in the world." (IBM)
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16. Mission Statements
 "FedEx is committed to our People-Service-Profit Philosophy. We will produce
outstanding financial returns by providing totally reliable, competitively superior,
global, air-ground transportation of high-priority goods and documents that
require rapid, time-certain delivery." (Federal Express)
 "Our mission is to earn the loyalty of Saturn owners and grow our family by
developing and marketing U.S.-manufactured vehicles that are world leaders in
quality, cost, and customer enthusiasm through the integration of people,
technology, and business systems." (Saturn)
 "In order to realize our Vision, our Mission must be to exceed the expectations of
our customers, whom we define as guests, partners, and fellow employees.
(mission) We will accomplish this by committing to our shared values and by
achieving the highest levels of customer satisfaction, with extraordinary emphasis
on the creation of value. (strategy) In this way we will ensure that our profit,
quality and growth goals are met." (Westin Hotels and Resorts)
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