MODULE – 2

VISION, MISSION AND OBJECTIVES

"Vision without action is a daydream.
Action without vision is a nightmare." 
 MEANING
• Vision
where the organisation wants to go in the
future
• Mission Statement
summary of the beliefs of the organisation
and where it is now
Reason for the existence.
 Strategic Planning
• The Vision
– Communicating to all staff where the organisation
is going and where
it intends to be in the future
– Allows the firm to set goals
• Aims and Objectives:
– Aims – long term target
– Objectives – the way in which you are going to
achieve the aim
 OBJECTIVES

Objectives are the end results of a 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 corporate’s
mission.
 Example:
• Aim may be for a chocolate manufacturer to break
into a new overseas market
• Objectives
– Develop relationships with overseas suppliers
– Identify network of retail outlets
– Conduct market research to identify consumer needs
– Find location for overseas sales team HQ
 MISSION
• It states the purpose or reason for the
organization’s existence.
• It tells what the company is providing to the
society, either service or products.
 Developing a Mission Statement
• Step1
Prepare a brainstorming session.
 
• Step2
What is the purpose of your organization.
 
• Step3
Consider the organization's products, services, markets, values, target
audiences, priorities and activities.

• Step4
Visit current and upcoming strategies the company has, and how they
effect the organization's overall mission.
• Step5
Ensure that the mission statement describes what the
organization does, and why it exists.
 
• Step6
Revise drafted mission statement ideas so that they are
short and concise, clear and easily understood.

• Step7
Develop a mission statement that will remain accurate in
light of future advances that may change the
organization's focus or direction. 
Criteria for Evaluating Mission Statements

• Brief enough for most people to keep it in mind

• Broad enough to allow flexibility in implementation, but not
broad enough to permit a lack of focus
• Reflective of the organization's values, beliefs, and philosophy
• Why the organization exists; that is, the overriding purpose
that the organization is trying to serve, and its goal
 Assignment

• Give a short account of the history of the

company
• Identify the mission and major goals of the
company
• Do an analysis of the strength, weakness,
opportunities and weakness of the company.
• Who is the CEO of the company. Evaluate the
CEO’s leadership capabilities.
PEST ANALYSIS
 PEST Analysis
     Environmental Scan
         

External Analysis Internal Analysis

    
 
Macro Micro
environment environment 

 P.E.S.T

 
 
 Break up of PEST

• Political Factors
• Economic Factors
• Socio Cultural Factors
• Technological Factors
 Political Factors
• This is the most important influence on the
regulation of any business.
– How stable is the political environment?
– Influence the Government Policy / Law on your
business
– Government’s position on Marketing Ethics
– Government’s policy on the economy
– Government’s view on culture under religion
– Political System is responsible for Law Making.
– Environmental Protection Law
 Economic Factors
• Government outlook towards
– Bank Financing
– Interest Rates
– Exchange Rate Mechanism
– Inflation
– Labour Policies
 Socio-Cultural Factors
• Demographics
• Distribution of Income
• Social Mobility
• Life Style Changes
• Educational Levels
 Technological Factors
• Advantage of Technology
– In terms of Economies of Scale
• New Discoveries & Innovations
• Speed & Cost of Technology Transfer
• Rate of Obsolescence
 Role of PEST
• Helps Assess the market including Competitors
from the stand point of a Particular Business.
• PEST is relevant for any type of Business large,
small & medium.
McKINSEY 7-S MODEL
McKINSEY 7-S MODEL
 7S Model
Super ordinate goals : Core values of the organization
Structure : How people and tasks / work are organized
Strategy : Plan to build competitive advantage through
competition
Systems : The daily activities and procedures that the staff
members engage in
Staff : The employee’s and their capabilities
Style : How managers behave
Skills : Attributes or capabilities that exist in the
organization
 Super ordinate goals
• It is also called as Shared Values
• It is in the centre of the model and
interconnecting, as it is the fundamental idea
under which a business is built
• These are the central belief’s and attitudes of
the organization