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Mission is the statement which defines the role that an orgn plays in society and it has gradually expanded to represent a concept which embodies an orgns purpose of existence. Characteristics of a mission statement:
It should be feasible It should be clear and precise It should be motivating It should be distinctive It should indicate the major components of the strategy It should also indicate how the objectives are to be accomplished

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Unique Characteristics of Mission

Abstract, romantic, full of zeal but rational Not time bound or straight jacketed Unique and personal to a firm Expresses core values of firm Characterized by grandeur

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What a corporate mission is NOT ?

A specific target Euphoria or a rhetoric But it is a guiding principle A PR document But is a proclamation to insiders and outsiders what the firm stands for A fad But a tool to build and sustain commitment of the people

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Importance of Vision & Mission

Serves as a basis to enable a sense of common purpose throughout the organisation. It enables management to take important decisions such as allocating organisational resources It is like a platform that helps in providing direction to managers and employees in taking day to day decisions. It facilitates delegation of authority and responsibility It helps in evaluating individual performances by comparing them with the objectives.

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How does Mission help a firm?

Lends direction to formulate growth path and guides nature and pace of growth Brings in clear focus corporate purpose & LT Goals and strategies Helps coordinated actions by people Makes sense out of changes in environment and decide which opportunities to tap. Brings to fore weaknesses in conceptualization of business Ensures that people do not fall into activity trap Ensures that subsequent steps like strategy and structure etc. do not go topsy-turvy.

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VISION & MISSION OF ADITYA BIRLA GROUP

Our Vision To be a premium global conglomerate with a clear focus on each business. Our Mission To deliver superior value to our customers, shareholders, employees and society at large.

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Our Values

Integrity Commitment Passion Seamlessness Speed

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VISION OF ITC
Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders

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MISSION OF ITC
To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value

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Some more examples of well-known companies' mission statements:

Wal-Mart: "To give ordinary folk the chance to buy the same thing as rich people." 3M: "To solve unsolved problems innovatively." Walt Disney: "To make people happy." NTPC To be one of the worlds largest and best power utilities, powering Indias growth

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Unilever: To make cleanliness, common place, to lessen work for women, to foster health, and to contribute to personal attractiveness that life may be more enjoyable, who use our products. Merck: To preserve and improve human life. Cadbury India: To attain leadership position in the confectionary market. Achieve a strong national presence in the food drink sector. Tata Information Systems : To be Indias most successful and most respected IT company.

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McKinsey & Co : To help business corporations and government to be more successful. RIL : To become a major player in the global chemical business and simultaneously grow in other growth industries like infrastructure. Ranbaxy : To become a $ 1 Bn. Research based Global Pharmaceuticals Company

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Core Values of the Firm

Represents the commonly held beliefs, mindset and assumptions that shape how the organisation functions as an entity. Respect for people, integrity, sense of urgency, Networking, creativity, Empowerment, courage etc

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Goals,Objectives and Plans

Goals provides the basis for action towards the achievement of organisations mission. Goals are both financial and non financial Objectives are operational definition of the organisations goals. They provide the measurable parameters for monitoring /evaluating the performance of the org. Plans indicate the specific actions that will be taken by the organisation in order to achieve the objectives.

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Goals,Objectives and Plans

Objectives growth objectives Performance leadership Human resource Development Financial soundness Technology leadership Sustainable power development Research and development

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Business Definition
What is our business? What will it be? What should it be?

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Dimensions of Business
Customer Functions Customer Groups Alternative Technologies

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The Product/Service Concept

A Product/Service concept, when defined carefully and innovatively, can prove to be of significant worth to strategists in different phases of strategic management. An explicit business definition and Product/Service concept are powerful tools for strategic management. Business definition and Product/Service concepts help in determination of the basic business philosophy to be adopted by an organisation in the long run which in turn helps in defining the strategic intent.

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Dimensions of Business Definition

by Derek Abell to Define the Business Along 3 Dimensions

Customer Functions What need is being satisfied?

Two Companies in the Time keeping Business Customer Groups Who is being satisfied?
Group Lady Fashionable Accessory Quartz Digital Industrial Recording Time Mechanical

Alternate Technologies How the need Is satisfied?

Function Alt. Tech

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The hierarchy of strategic intent covers the vision and mission, business definition, and the goals and objectives. Associated with the idea of strategic intent are the concepts of : Stretch is a misfit between resources and aspirations Leverage refers to concentrating, accumulating, complementing , conserving and recovering resources in such a manner that a meager resource base is stretched to meet the aspirations that an organisation dares to have

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Fit the idea of stretch is diametrically opposite to the idea of fit, which means positioning the firm by matching its organisational resources to its environment

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Vision constitutes future aspirations that lead to an inspiration to be the best in ones field of activity. The process of envisioning involves dealing with two components of core ideology and envisioned future. Core ideology defines the enduring character of an orgn which remains unchanged. Envisioned future has a time bound long term goal and a vivid description of what it will be like to achieve that goal.

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Mission is the statement which defines the role that an orgn plays in society and it has gradually expanded to represent a concept which embodies an orgns purpose of existence. Characteristics of a mission statement:
It should be feasible It should be clear and precise It should be motivating It should be distinctive It should indicate the major components of the strategy It should also indicate how the objectives are to be accomplished

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Objectives are the ends that state spicifically how the goals shall be achieved. They are concrete and specific in contrast to goals which are generalised. Characteristics of Objectives:
They should be understandable, concrete and specific They should relate to a time frame They should be measurable and controllable They should be challenging They should relate with each other

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Objectives need to be set in all those performance areas, which are of strategic importance to an organisation. Factors to be considered while setting objectives:
Forces in the environment Realities of an enterprises resources Internal power relationships Ethos and value system of the orgn

Above Critical Success Factors(CSFs) are crucial for organisational success.

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Strategic Intent in Practice

Acceptable to stakeholders Consistent with the history and culture of the enterprise Must stretch beyond its present aspirations and practices Will tend to be based on inspired guess of the future Includes both vision and goals

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Strategic Intent - Role of Leadership Inspirational leaders illustrate role

Highly visible Strategic intent closely related to leader Surrounded by people who agree Hence vision widely understood and accepted However, danger if vision become inappropriate

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Impact of Context on Strategic Intent

Organizational History and Culture
Recent events Track record Current performance Merger residues

Ownership and power structure

Family firms Founder(s) in residence Personal goals and agendas

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Stakeholders in Business

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Importance of Stakeholders in Business

Stakeholder
Shareholders

Main Interests
Profit growth, Share price growth, dividends

Power and influence

Election of directors Can enforce loan covenants, Can withdraw banking facilities

Banks & other Lenders Interest and principal to be repaid, maintain credit rating Directors and managers Employees Suppliers Salary ,share options, job satisfaction, status Salaries & wages, job security, job satisfaction & motivation Long term contracts, prompt payment, growth of purchasing Reliable quality, value for money, product availability, customer service Environment, local jobs, local impact Operate legally, tax receipts, jobs Make decisions, have detailed information Staff turnover, industrial action, service quality Pricing, quality, product availability Revenue / repeat business , Word of mouth recommendation Indirect via local planning and opinion leaders Regulation, subsidies, taxation, planning

Customers Community Government

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Stakeholders influence on Strategic Intent

Any stakeholder group with an interest in the Enterprise tries to influence the strategic intent in its favour Influence tends to vary with the levers of power the stakeholder group holds Future direction and current actions are often strongly determined by the directors view of the response of powerful stakeholders

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Importance of Stakeholders in Business

Power and influence Different stakeholders vary according to their ability to influence the business of a company Dominant shareholders have major say in running of the Company A venture capitalist with 40% of the companys share capital will have a greater influence than a small shareholder Banks have a considerable impact on firms facing cash flow problems but can be ignored by a cash rich firm

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Importance of Stakeholders in Business

A customer who provides 50% of the revenue of a business exerts significantly more influence than several smaller customers An exclusive OEM supplier has more influence then the suppliers who can be replaced Businesses that operate from many locations across the country will be less relevant to the local community than a business which is the dominant employer in a town or village
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Model for strategic response to stakeholder power

Extent of Power High Avoid annoying Consult and Involve

Low

Least important

Inform

Low

High

Inclination to exercise power