“Most people overestimate what they can do in

one year and underestimate what they can do

in 10 years.” — Bill Gates
MGN571

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LEARNING OBJECTIVES

1 Understand difference between Vision & Mission

2 Understand the relationships among vision, mission,

and strategy

3 Understand the roles of vision and mission in deter-

mining strategic purpose and strategic coherence

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UP STATE TOURISM DEVELOPMENT CORPORATION

The mission of the corporation as laid down in its memorandum of association are:

•To promote, take over, develop, start, purchase, construct, take on lease, maintain,
manage and operate hotels, restaurants, motels, travelers, lodges, guest houses and
other places for the purpose of boarding, lodging and stay of the tourists.

•To enter into any arrangement for taking over any or all of the assets and liabilities of
any department of the Government of UP connected with the development of tourism.

•To establish and manage transport units, travel and transport counters, import,
purchase lease and run or otherwise operate buses, trucks, aircraft, helicopter etc. and
to act as travel agents for airlines, railways etc.

•To produce, distribute and sell tourist publicity material: edit design, print, publish, sell
or otherwise deal with books, magazines, periodicals and other materials for the
purpose of giving publicity….
QUIZ

• Which Co. invented the hand held camera?

• Which company camera helped bring the

world the first pictures from the moon?

• Which company invented digital camera?

 KODAK files for
Bankruptcy Protection,
Gets $950 million
lifeline from Citigroup
20/1/12
KODAK MISSED THE BOAT ON DIGITAL

• Never capitalized on the digital-camera tech it helped

create (1975-1995)
• Misunderstood the new ways consumers wanted to
interact with their photos, the technologies involved, and
the market forces surrounding them.
MISSION

Sony president, Akio Morita,

wanted everyone to have access
to 'personal portable
sound', and his company created
the Walkman.

Richard Branson thought 'flying

should be fun', so he founded
Virgin Airlines.

Thomas Monaghan wanted to

deliver hot pizza to any home
within 30 minutes, and he created
Domino's Pizza.

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• 3M states its mission not as making office products, but as creating
innovations.
– 'make your work- make your life - simpler, more efficient, more
productive.’

• Contrast the missions of the two computer giants IBM and Apple. When
IBM sales were £50 billion, president John Akcrs said that IBM's goal was
to become a $100 billion company by the end of the century. Meanwhile,
Apple's long-term goal was to put computer power into the hands of every
person. Apple's mission is much more motivating than IBM's.

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WHAT IS MISSION?

• IBM - selling computers or solutions to problems?

• The Red Cross – collecting money or helping the

needy?

• Kodak – selling films or capturing memories?

• Revlon – selling cosmetics or hope?

• Tidswells – selling super or peace of mind?

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Mission Statement vs Vision Statement

Mission Statement Vision Statement

A mission statement talks about the A vision statement talks about the
Time
Organization's present. organization's future.
It lists where the organization sees itself
It lists the broad goals for which the
some years from now. For employees, it
organization is formed. Its prime function
gives direction about how they are
is internal, to define the key measure or
Function expected to behave and inspires them to
measures of the organization's success
give their best. It shapes customers'
and its prime audience is the leadership
understanding of why they should work
team and stockholders.
with the org.
A Mission statement talks about HOW A Mission statement talks about HOW
the organization will get to where it wants the organization will get to where it wants
About to be. Defines the organization's purpose to be. Defines the organization's purpose
and primary objectives. and primary objectives.

Quorum Health Group, Inc., is a hospital

Quorum Health Group, Inc., will be
company committed to meeting the
valued for its expertise in hospital
needs of clients as an owner, manager,
Example management and its ability to positively
consultant or partner through innovative
impact the delivery of quality healthcare.
services that enhance the delivery of
quality healthcare.
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DIFFERENCE CONTINUES…

• MISSION
A company's mission explains why organization exists - and what it's
purpose is. 
– Purpose should be enduring - something, the pursuit of which is
limitless.
– The most important attribute of purpose is authenticity - it has to be
real, not for show.

• VISION
The purpose of a vision statement is to help develop a more concrete
picture of what company will look like in 10 years, in pursuit of mission
statement. 
– What do you want the organization to be in 10 years?
– What do you want your organization to have in 10 years?
– What do you want your organization to do in 10 years?

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Vision

• “The last thing IBM needs right now is a Vision.”

-Louis Gerstner, Chairman of IBM. July 1993.

• “What IBM needs most right now is a Vision.”

-Louis Gerstner, Chairman of IBM, stated in IBM’s 1995 Annual Report.

• Meanwhile at Microsoft Bill Gates’ Vision was:

“To have our software in every computer in the world.”

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VISION – USE OF AMBITION AND AMBIGUITY
Sony’s vision in early 1950’s:
“becoming the company that most
changes the worldwide image of
Japanese products as being of
poor quality.”
CitiBank’s vision in 1915:
“the most powerful, the most
serviceable, the most far reaching
world financial institution the world
has ever seen.”
Vision statements
 generally express long-
term action horizons,
 are ambitious and
force the firm to stretch.
 their ambiguity allows
flexibility for changing
strategy or
implementation tactics
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BIG HAIRY AUDICIOUS GOALS

• The term Big Hairy Audacious Goal ("BHAG")

was proposed by James Collins and Jerry
Porras in their 1996 article entitled ‘Building
Your Company's Vision’.

• A BHAG encourages companies to define

visionary goals that are more strategic and
emotionally compelling.

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POLL

• The _________ answers the question "What do we want to become?" whereas ______ answers
the question "What is our business?“

A. Vision statement, mission statement

B. Short-term objectives; long term objectives

C. Objectives; strategies

D. Mission vision

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POLL

•
Strategic Management involves

A. The determination of the organiation's mission, strategic

policies and strategic objectives

B. Cost

C. The determination of price of the product and service

D. Planning with high cost

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BHAG

• AIESEC: Engage and develop every young person in the world.

• Amazon: Every book, ever printed, in any language, all available in

less than 60 seconds. Also: Earth's most customer centric company.

• Google: Organize the world's information and make it universally

accessible and useful.

• Microsoft: A computer on every desk and in every home.

• Twitter: To become "the pulse of the planet."

BIG HAIRY AUDACIOUS GOALS ARE:

1.Action-oriented

2.Clear (who, what, where, by when)

3.Compelling and gripping

4.Bold; bordering on hubris and the unattainable

BUSINESS STRATEGY DIAMOND
Arenas
• Where will we be active? ( and with
how much emphasis?)
– Which product categories?
– Which channels?
Arenas – Which market segments?
– Which geographic areas?
– Which core technologies
– Which value-creation strategies?
Staging
• What will be our speed and Economic Vehicles
sequence of moves? Staging Vehicles
logic • How will we get there?
– Speed of expansion?
– Internal development?
– Sequence of initiatives
– Joint ventures?
– Licensing/franchising?
Economic logic – Experimentation?
Differentiators – Acquisitions?
• How will returns be obtained?
– Lowest costs through scale Differentiators
advantages? • How will we win?
– Lowest costs through scope – Image?
and replication advantages – Customization?
– Premium prices due to – Price?
unmatchable service? – Styling?
– Premium prices due to – Product reliability?
proprietary product features? – Speed to market? 23
JET BLUE STRATEGY

• Low fare commercial air carrier

Arenas • Underserved but over-priced US cities

• Start from scratch and achieve all growth

Vehicles internally (i.e., do not purchase a regional airline)
Objective
To “bring
• High level of service compared to low fare competitors
humanity
Differentiators (e.g., leather seating, satellite TV)
back to air
travel”

• Grow from one route between two cities to serving 20

Strategy cities in just 3 years

• Secure cost advantage by being willing and able to

Economic logic perform key tasks differently
– One type of plan
– JFK home base
– Secondary location
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FRAMEWORK FOR STRATEGY IMPLEMENTATION

Key Factors of Strategy Implementation

Implementation levers
• Organizational structure
Realized
Intended
• Systems and processes and
Strategy • People and rewards Emergent
Strategies

Strategic leadership
• Lever- and resource-allocation decisions
• Decision support among stakeholders

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PULLING A USD 15 BILLION COW OUT OF A DITCH

Mulcahy takes Xerox

The fall from She lends a
reaches
the nifty 50 over turnaround
profitability

• Xerox introduces • October 2001, Xerox • Refines Xerox vision • Annual expenses cut
the Xerox 914 reports first quarterly and reminds people by USD 1.7 billion
copier in 1959. loss in16 years. of core values
This copier Mulcahy is not • Sold USD 2.3 billion
transformed the obvious choice for • Aligns operation with worth of non-core
the refined mission assets
work place top position
and values
• Xerox was charter • She lacks product • Reduced long-term
member of the development and • Sells Xerox’s China debt to USD 9.2 billion
and Hong Kong from USD 15.6 billion
“nifty 50”-50 stocks financial expertise
operations and half
most favored by
• She gets it because of a stake in a joint • Xerox returns to
institutional profitability in 2002,
the board has venture with Fuji
investors generating USD 1.9
confidence in her
• Since 1970s, “strategic mind”. • Closes down inkjet billion in operating
business cash flow and USD 91
however, Xerox
million in net income
has been crippled
on USD 15.8 billion in
by competition
sales
(mostly Japanese)

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THANK YOU

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