VISION, MISSION, GOALS, OBJECTIVES, PLANS

GENERAL (MOST INTEGRATIVE) LONG TIME HORIZON GENERAL (MOST INTEGRATIVE) VISION MISSION GOALS OBJECTIVES TACTICS PROGRAM, PROCEDURE SPECIFIC SHORT TIME HORIZON

VISION A vision is a goal that is “ massively inspiring, overarching and long term”. It represents a destination that is driven by and evoke passion. A vision may or may not succeed; it depends on whether everything else happens according to a firm’s strategy.

WHY VISION FAILS? The Walk Doesn’t Match the Talk Irrelevance – Unrelated to environmental threats or opportunities Not the Holy Grail – Only one elusive solution Too Much Focus Leads to Missed Opportunities An Ideal Future Irreconciled with the Present

Formal statement of what a business wants to be. VISION STATEMENT Formal statement of what a business wants to be. A vision statement has to have four parts: Core value Core Purpose BHAG Vivid Description (‘Grandma’s Test) Organizational Vision and Visionary Organization” (Article) By Jerry I. Porrass,  James Collins (1991) Working Paper No. 1159 Graduate School of Stanford Business

“ To be the happiest place on earth”. VISION STATEMENT “ To be the happiest place on earth”.

VISION “Become the Company most known for changing the worldwide poor-quality image of Japanese products”

VISION "To bring inspiration and innovation to every athlete in the world" If you have a body, you are an athlete.

VISION FAILS ? In 1992, Kun-Hee Lee, chairman of South Korea’s Samsung Group, created a bold strategy to become one of the 10th largest car manufacturers by 2010. Seduced by the clarify of vision, Samsung bypassed staged entry through a joint venture or initial supply contract. Instead, Samsung borrowed heavily to build a state-of-the-art research and design facility and erect a greenfield factory, complete with cutting edge robotics. Samsung Auto suffered operating losses and crushing interest charges from the beginning. And within a few years the business was divested for a fraction of the initial investment.

VISION

It is essential purpose of organization. MISSION “Purpose or reason for the organization’s existence” (Hynger & Wheelen) “Essential purpose of the organization, concerning particularly why it is in existence, the nature of the business it is in, and the customers it seeks to serve and satisfy” (Thompson) It is essential purpose of organization. It answers “why the organization is in existence”. It is the basis of awareness of a sense of purpose. It fits its capabilities and the opportunities which the environment offers

It is essential purpose of organization. MISSION “Purpose or reason for the organization’s existence” (Hynger & Wheelen) “Essential purpose of the organization, concerning particularly why it is in existence, the nature of the business it is in, and the customers it seeks to serve and satisfy” (Thompson) It is essential purpose of organization. It answers “why the organization is in existence”. It is the basis of awareness of a sense of purpose. It fits its capabilities and the opportunities which the environment offers

MISSION STATEMENTS : "We create happiness by providing the finest in entertainment for people of all ages, everywhere."

"To experience the joy of advancing and applying technology for the benefit of the public."

"To lead in corporate citizenship through proactive programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services to Nike"

GOALS Goals are statements we make about the future for our business. They represent our aspirations for it. We might say, “We seek to be the most widespread widget maker in the country.” This statement demonstrates that we have lofty plans for our business, but it does not say specifically how we can meet our goal.

OBJECTIVES Objectives are the exact steps our company must take to reach its goals. They are written without emotion, and they are typically measurable and quantifiable. They also are realistic and attainable and have an associated timeline. For example, an objective for the goal statement of being the most widespread widget maker in the country might be, “We will increase our sales by 3 percent in each quarter of this year in each region in which we currently operate.” Another objective might be, “We will open new branches and plants in two states per quarter this year.”

GOALS & OBJECTIVES: SUMMARY A goal is a broad aim we establish to start the business planning process. For example, growing sales revenue in North America can be considered a goal. An objective is a specific milestone that we reach on the way to achieving our goal. For example, expanding our distribution network is an objective used to reach the goal of raising company revenue.

S A T R M bjectives OBJECTIVES MUST BE SPECIFIC MEASURABLE APPROPRIATE REALISTIC T TIMELY

EXAMPLE OF STRATEGIC OBJECTIVES ( FINANCIAL & NON-FINANCIAL) Increase in sales growth 6% to 8% and ROI from 13% to 15% (P&G) Generate internet related direct marketing income of $1.5 USD (AutoNation) Increase the contribution of Banking Group earnings from Investments, Brokerage and Insurance from 16% to 25% (Wells Fargo) Reduce the budget deficit from 3.90 in 2016 to 3.20 in 2017 (UAE) Want to operate 9000 stores by 2020 – up from 3000 in the year 2010 ( Walgreen’s) Reduce greenhouse gases by 10 per cent by 2017 (BP Amoco) Attain macro economic stability Maintain current account surplus by diversifying exports to non-oil products during 2020 to 2030.