Strategy Formulation-Vision, Mission and Purpose

A vision is more dreamt of than it is. Vision Statement is permanent statement of a company. Vision is future aspirations that lead to an inspiration. It defines the very purpose of existence of a company.

The vision of a company is a direction for action for employees. The essence of a vision is forward looking view of what an organisation wishes to become.

Kotler(1990) defines Vision as “ a description of an enterprise. (an organisation, corporate culture, a business, a technology, an activity) in future”.

El-namaki(1992) defines vision as a “mental perception of the kind of environment an individual, or an organisation, aspires to create within a broad time horizon and underlying conditions for the actualisation of this perception”

Miller and Dess(1996) defines vision as “category of intentions that are broad, all inclusive, and forward thinking”

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Characteristics of a Vision Statement

Inspiring and exhilarating.

It represents, a continuity, a step, a jump ahead to dream what it is to be.

Creation of common identity and share sense of purpose.

Competitive, original and unique and practical.

Foster risk taking and experimentation.

Foster long term thinking.

A vision is a statement about what your organization wants to become.

It should resonate with all members of the organization and help them feel proud, excited, and part of something much bigger than themselves.

A vision should stretch the organization’s capabilities and image of itself. It gives shape and direction to the organization’s future.

Visions range in length from a couple of words to several pages.

Shorter vision statements is recommended because people will tend to remember their shorter organizational vision.

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Vision Statement Vision Statement Samples:

"Year after year, Westin and its people will be regarded as the best and most sought after hotel and resort management group in North America." (Westin Hotels)

"To be recognized and respected as one of the premier associations of HR Professionals." (HR Association of Greater Detroit)

Vision Statement of “TATA STEEL”

“TATA Steel enters the new millennium with the confidence of learning, knowledge based and happy organisation. We will establish ourselves as a supplier of choice by delighting our customers with our service and products. In the coming decade, we will become the most cost competitive steel plant and so serve the community and the nation”.

Vision Statement of Farm Fresh Produce (North Carolina)

“We help the families of Main Town live happier and healthier lives by providing the freshest, tastiest and most nutritious local produce: From local farms to your table in under 24 hours.”

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Developing a Vision Statement

The vision statement includes vivid description of the

organization as it effectively carries out its operations.

Developing a vision statement can be quick culture-specific,

i.e., participants may use methods ranging from highly

analytical and rational to highly creative and divergent, e.g.,

focused discussions, divergent experiences around

daydreams, sharing stories, etc. Therefore, visit with the

participants how they might like to arrive at description of

their organizational vision.

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Developing the vision can be the most enjoyable part of

planning, but the part where time easily gets away from you

Note that originally, the vision was a compelling description

of the state and function of the organization once it had

implemented the strategic plan, i.e., a very attractive image

towards which the organization was attracted and guided by

the strategic plan. Recently, the vision has become more of a

motivational tool, too often including highly idealistic

phrasing and activities which the organization cannot

realistically aspire.

Strategic Vision

Strategic Vision is a road map showing the route a company intends to

take in developing and strengthening the business. It defines Company’s

destination and provides rational for going there. It culminates in to a

Mission Statement. Strategic Vision points an Organisation in a particular

direction, charts a strategic path to follow for future and moulds the

organisation’s identity.

Strategic Vision is different from Mission Statement: Strategic Vision

deals with where we are going, where as Mission Statement deals with

Company’s present business scope and purpose.

A company Mission is guided by the buyer’s needs it seeks to satisfy, the

customer groups and market segments it is endeavouring to serve, and the

resources and technologies that it is deploying in trying to please customers

and achieve a Market and Industry position.

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Example of Strategic Vision

“The San Antonio Express News” developed this Strategic Vision,

"EXPAND” our customer base and enhance the franchise by pursuing multimedia opportunities.

“DELIVER” an award-winning level of journalistic excellence, building public interest, trust and pride.

“PROVIDE” vigorous community leadership and support.

“INSTILL” an environment of internal and external excellence in customer service.

“EMPOWER” and recognize each employee's unique contribution.

“ACHIEVE” the highest standards of quality.

“IMPROVE” financial strength and profitability."

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Mission

Thompson(1997) defines Mission as “the essential purpose of the

organisation, concerning particularly, why it is in existence, the nature of

businesses it is in, and the customers it seeks to serve and satisfy”

Hunger and Wheelen(1999) say that “mission is the purpose and reason

for the organisation’s existence”

Mission statements could be formulated on the basis of vision that an

entrepreneur decides on in the initial stages.

A business mission helps to evolve an executive action.

Mission of organisation is what it is and why it exists. It represents

common purpose which the entire organisation shares and pursues. It is a

guiding principle.

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Mission Statement

Mission of a company is expressed in terms of products and

geographical scope. It includes a methodology of attaining the desired

goal in vision. It defines the competitive strength of a company and it

emanates from corporate vision and strategic posture of a company.

Thus the mission of a business is a statement, a build-up philosophy of

its current and future expected position with regards to its products,

market leadership.

Mission is statement which defines the role of organisation plays in a

society.

The corporate mission is growth ambition of the firm.

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Mission

Characteristics of a Mission Statement

It should be feasible & It should be precise.

It should be clear & It should be distinctive.

It should be motivating.

It should be indicative of major component of strategy

It should be indicative of how objectives are to be accomplished.

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Mission Statement Creation To create your mission statement, first identify your

organization’s “winning idea”.

This is the idea or approach that will make your organization stand out from its competitors, and is the reason that customers will come to you and not your competitors.

Next identify the key measures of your success. Make sure you choose the most important measures (and not too many of them!)

Combine your winning idea and success measures into a tangible and measurable goal.

Refine the words until you have a concise and precise statement of your mission, which expresses your ideas, measures and desired result.

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Contents of a Mission Statement

1. At its most basic; the mission statement describes the overall purpose of the organization.

2. When wording the mission statement, consider the organization's products and services.

3. Should describe markets, values, and concern for public image, and maybe priorities of activities for survival.

4. Consider any changes that may be needed in wording of the mission statement because of any new suggested strategies during a recent strategic planning process.

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Mission Statements

5. Ensure that wording of the mission is to the extent that

management and employees can infer some order of priorities

in how products and services are delivered.

6. Does the mission statement include sufficient description that

the statement clearly separates the mission of the organization

from other organizations?

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Mission Statement of Ranabaxy

“To become a $ 1 Billion research based global (International) company pharmaceutical company”

The mission statement of Farm Fresh Produce is:

“To become the number one produce store in Main Street by selling the highest quality, freshest farm produce, from farm to customer in under 24 hours on 75% of our range and with 98% customer satisfaction.”

"Our goal is simply stated. We want to be the best service organization in the world." (IBM)

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Mission Statements

"FedEx is committed to our People-Service-Profit Philosophy. We will produce

outstanding financial returns by providing totally reliable, competitively superior, global, air-ground transportation of high-priority goods and documents that require rapid, time-certain delivery." (Federal Express)

"Our mission is to earn the loyalty of Saturn owners and grow our family by developing and marketing U.S.-manufactured vehicles that are world leaders in quality, cost, and customer enthusiasm through the integration of people, technology, and business systems." (Saturn)

"In order to realize our Vision, our Mission must be to exceed the expectations of our customers, whom we define as guests, partners, and fellow employees. (mission) We will accomplish this by committing to our shared values and by achieving the highest levels of customer satisfaction, with extraordinary emphasis on the creation of value. (strategy) In this way we will ensure that our profit, quality and growth goals are met." (Westin Hotels and Resorts)

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