VISION-
It is at the top in the hierarchy of strategic intent. It is what the firm would ultimately like to become. A few definitions are as follows:
KOTTER description of something (an organization, corporate culture, a business, a technology, an activity) in the future. The definition itself is comprehensive and states clearly the futuristic position.
MILLER and DESS defined vision as the “category of intentions that are broad, all-inclusive and forward-thinking”
The definition lays stress on the following:
(1) broad and all inclusion intentions
(2) vision is a forward-thinking process.
A few important aspects of vision are as follows:
· It is more of a dream than an articulated idea
· It is an aspiration of the organization. The organization has to strive and exert to achieve it.
· It is a powerful motivator to action.
· Vision articulates the position of an organization that it may attain in the distant future.
Envisioning
This is the process of creating a vision. It is a difficult and complex task. A well-conceived vision must have
· Core Ideology
· Envisioned Future
Core Ideology will remain unchanged. It has an enduring character. It consists of core values and core purpose. Core values are essential tenets of an organization. The core purpose is related to the reasoning of the existence of organization.
Envisioned Future will basically deal with the following:
· The long term objectives of the organization.
· Clear description of articulated future.
Advantages of Having a Vision
A few benefits accruing to an organization having a vision are as follows:
· They foster experimentation.
· Vision promotes long term thinking
· Visions foster risk-taking.
· They can be used for the benefit of people.
· They make organizations competitive, original, and unique.
· Good vision represent integrity.
· They are inspiring and motivating to people working in an organization.
CORE VALUES AND CORE PURPOSE
The initial reference of these two terms was given in section 3.3. These concepts are very important in the process of envisioning. COLLINS and PORRAS have developed this concept for a better philosophical perspective. As has already been discussed, a well-conceived vision consists of core ideology and envisioned future. Core ideology rests on core values and core purpose.
Core Values are the essential and enduring tenants of an organization. They may be beliefs of top management regarding employee welfare, customer interest, and shareholder wealth. The beliefs may have an economic orientation or social orientation. The evidence clearly indicates that the core values of Tata’s are different from the core values of Birla’s or Reliance. The entire organization structure revolves around the philosophy coming out of core values.
Core Purpose is the reason for the existence of the organization. Its reasoning needs to be spelled.
A few characteristics of core purpose as follows:
(i) It is the overall reason for the existence of an organization.
(ii) It is the why of the organization.
(iii) This mainly addresses the issue which organization desires to achieve internally.
(iv) It is the broad philosophical long term rationale.
(v) It is the linkage of an organization with its own people.
MISSION
The mission statements stage the role that the organization plays in society. It is one of the popular philosophical issues which is being looked into business mangers for last two decades.
Definition
A few definitions of mission are as follows:
HYNGER and Wheelen “ purpose or reason for the organization’s existence.
DAVID F. Harvey states “ A mission provides the basis of awareness of a sense of purpose, the competitive environment, degree to which the firm’s mission fits its capabilities and the opportunities which the government offers.
Thompson states mission as the “ 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.
The above definition reveals the following:
(i) It is the essential purpose of organization
(ii) It answers “ why the organization is in existence”.
(iii) It is the basis of awareness of a sense of purpose.
(iv) It fits its capabilities and the opportunities which government offers.
Nature
A few points regarding nature of mission statement are as follows.
· It gives social reasoning. It specifies the role which the organization plays in society. It is the basic reason for existence.
· It is philosophical and visionary. It relates to top management values. It has long term perspective.
· It legitimises societal existence.
· It is stylistic objectives. It reflects corporate philosophy, identify, character and image of organization.
Characteristics
In order to be effective, a mission statement should posses the following characteristics.
(i) A mission statement should be realistic and achievable. Impossible statements do not motivate people. Aims should be developed in such a way so that may become feasible.
(ii) It should neither be too broad not be too narrow. If it is broad, it will become meaningless. A narrower mission statement restricts the activities of organization. The mission statement should be precise.
(iii) A mission statement should not be ambiguous. It must be clear for action. Highly philosophical statements do not give clarity.
(iv) A mission statement should be distinct. If it is not distinct, it will not have any impact. Copied mission statements do not create any impression.
(v) It should have societal linkage. Linking the organization to society will build long term perspective in a better way.
(vi) It should not be static. To cope up with ever changing environment, dynamic aspects be looked into.
(vii) It should be motivating for members of the organization and of society. The employees of the organization may enthuse themselves with mission statement.
(viii) The mission statement should indicate the process of accomplishing objectives. The clues to achieve the mission will be guiding force.
Examples of Mission Statement
A few examples of mission statement ( academically not accepted) are as follows:
India Today “ The complete new magazine”
Bajaj Auto, “Value for Money for Years”
HCL, “ To be a world class Competitor”
HMT, “Timekeepers of the Nation”
Some experts argue that these are the publicity slogans. They are not mission statements. A few other examples are as follows:
Ranbaxy Industries “ To become a research based international Pharmaceuticals Company”.
Eicher Consultancy “ To make India an economic power in the lifetime, about 10 to 15 years, of its founding senior managers.”
Formulation of Mission Statements
The mission statements are formulated from the following sources:
(i) National Priorities projected in plan documents and industrial policy statements.
(ii) Corporate philosophy as developed over the years.
(iii) Major strategists have vision to develop mission statements.
(iv) The services of consultants may be hired.
Mission vs Purpose
The term purpose was used by some strategists. At some places, it was used as synonymous with the mission. A few major points of distinction are as follows:
(i) The mission is societal reasoning while the purpose is the overall reason.
(ii) The mission is external reasoning and relates to the external environment. The purpose is internal reasoning and relates to the internal environment.
(iii) The mission is for outsiders while the purpose is for its own employees.
BUSINESS DEFINITION
It explains the business of an organization in terms of customer needs, customer groups and alternative technologies.
Oerik Abell suggests defining business along the three dimension of customer groups. Customer functions and alternative technologies. They are developed as follows:
(i) Customer groups are created according to the identity of the customers.
(ii) Customer functions are based on provision of goods/services to customers.
(iii) Alternative Technologies describe how a particular function can be performed for a customer.
For a watchmaking business, these dimensions may be outlined as follows:
· Customer groups are individual customers, commercial organizations, sports organizations, educational institutions etc.
· Customer functions are record time, finding time, alarm service etc. It may be a gift item also.
· Alternative technologies are manual, mechanical and automatic.
A clear business definition helps identify several strategic choices. The choices regarding various customer groups, various customer functions and alternative technologies give the strategists various strategic alternatives. The diversification, mergers and turnaround depend upon the business definition. Customer oriented approach of business makes the organization competitive. On the same lines, product/ service concept could also give strategic alternatives from a different angle. Business can be defined at the corporate or SBU levels. At the corporate level, it will concern itself with the wider meaning of customer groups, customer functions and alternative technologies. If strategic alternatives are linked through a business definition, it results in considerable amount of synergic advantage.
OBJECTIVES AND GOALS
Objectives refer to the ultimate end results which are to be accomplished by the overall plan over a specified period of time. The vision, mission and business definition determine the business philosophy to be adopted in the long run. The goals and objectives are set to achieve them.
Meaning
Objectives are openended attributes denoting a future state or out come and are stated in general terms.
When the objectives are stated in specific terms, they become goals to be attained.
In strategic management, sometimes, a different viewpoint is taken.
Goals denote a broad category of financial and non-financial issues that a firm sets for it self.
Objectives are the ends that state specifically how the goals shall be achieved.
It is to be noted that objectives are the manifestation of goals whether specifically stated or not.
Difference between objectives and goals.
The points of difference between the two are as follows:
· The goals are broad while objectives are specific.
· The goals are set for a relatively longer period of time.
· Goals are more influenced by external environment.
· Goals are not quantified while objectives are quantified.
