Value, Vision, Mission, and Strategic Goals Chapter 2 Value, Vision, Mission, and Strategic Goals

Chapter Objectives After finish this chapter student will understand: what is vision, mission and goal? What is the important of vision, mission and goal? how to writing vision, mission, goal a sample of vision, mission and goal of some organization in the world.

2.1 Corporate Values Values factors: Are the underlying principles which guide and also drive the actions and activities of individual company. Key question: “What values or beliefs do you want to represent your organization?” Values factors: Importance of customers and customer services. Commitment to quality and innovation. Respect for individual employee and customers. Take care of brand name and reputation. Believe of trust and respect. Importance of honesty. Customer loyalty.

2.2 Vision Vision concerns a firm’s future business path “where we are going” or “What do we want to become?”, but by Jonathan Swift : Vision is the art of seeing things invisible . Example: Build Bright University will be one of the leading and internationally recognized university. Microsoft: A computer on every desk and in every home. General Motors: To be the world leader in transportation product and service.

2.3 Mission Mission is the purpose or reason for company’s existence “who we are and what we do” or “why we are here?” Mission statements: are “enduring statements of purpose that distinguish one business from other similar firms. A mission statement identifies the scope of a firm’s operation product and market terms.” “What is our business?” Example: Build Bright university is committed to provide students needed knowledge and skills that meet national and international standard.

Example: Microsoft is to create software for the personal computer that Empower people through great software anytime, anyplace, and on any device. AVIS rent a car : Our business is renting cars. Our mission is total customer satisfaction. Shell Oil Company is in business to excel in the oil, gas, petrochemical, and related business in the United States and where we add value internationally.

Group Discussion Break class in to group 4 to 6 in a group Suppose you are in Food & Beverage Industry (restaurant business) create your own Vision create your own Mission Presentation your work to the class

2.4 Goals and Objectives Long-term objectives: Specific result that an organization seeks to achieve in pursuing its basic mission. Long-term means more than one year. Example: Minnesota Power is to achieve a 13 percent return on equity (ROE) in its core electric utility. Annual objectives: Short-term milestones that organizations must achieve to reach long-term objectives. Like long-term, annual objectives should be SMART. Minnesota Power is to maintain an annual growth in earnings per share of 5 percent.

Goals or Objectives are the end results of planned activity Goals or Objectives are the end results of planned activity. They state what is to be accomplished by when and should be quantified if possible. The achievement of corporate objectives should result in the fulfillment of a corporation’s mission. Goals/objectives must be SMART. Short-term (1 year or less) Intermediate-term (1-2 years) Long-term (3-5 years or more)

SMART Goals Your goal should be match to SMART: Specific Goal Measurable Goal Attainable Goal Result-Oriented Goal Target-Dates Goal

Examples of Financial Objectives Grow earnings per share 15% annually Increase annual dividends per share to stockholders by 5% each year Examples of Strategic Objectives Increase firm’s market share Attain lower overall costs than rivals Boost firm’s reputation with customers Achieve technological superiority

2.5 Business Ethics Business ethics The principles of conduct within organization that guide decision making and behavior. A new wave of ethics issues related to product safety, employee health, foreign business practices, takeover tactics, conflicts of interest, employee privacy, inappropriate gifts, securities of company records, and layoffs.

Homework Find a real business in your town: Submit in proper paper Write down their Vision Write down their Vision and Write down their Goal Submit in proper paper Presentation to the class if necessary.