Defining the Organizations Purpose, Mission and Objectives

CASTAEDA, Chiara Jolene A.

Reporter #6 BSA 3-2

Dr. Celso Jovy D. Torreon

Professor, Business Policy and Strategy

In the beginning, we can consider that a business is just a mere collection of ideas. Starting it requires a lot of documents, people, capital and a lot more. Basically, a new business rests on the set of beliefs that the organization they are going to introduce can benefit and provide what the customers need and want. When these beliefs are put into writing, the resulting document reflects the ideas as the vision and mission of an organization. Developing the vision and mission helps an organization to evaluate, forecast and direct its operations into what they want to achieve.

Vision
What do we want to become?

Mission
What is our business about?

Goals
What do we want to achieve?

Objectives
How are we going to do that?

In order for a business or an organization to be successful, its management should be able to accomplish the first stage of the strategic management process and that is to define the organizations purpose, mission and objectives. In developing the vision, mission, goals and objectives of an organization, managers should be able to answer the questions in the diagram above to successfully direct its operations into achieving its ultimate goal. VISION What do we want to become? is the basic question that a clear vision statement should answer. Creating a vision statement does not require elaborative phrases. As much as possible, it should be short and concise preferably one sentence and as many managers as possible should have input into developing the statement. One way to incorporate many managers in developing a vision statement is ask managers themselves to develop a vision statement for the company. Later on, a group of facilitators of top management should merge these statements and develop something that clearly defines what the organization wants to become. Having a clear vision of what the organization wants to become in the near future is important for it provides the foundation for defining a comprehensive mission statement.

MISSION Asking the question What is our business? is the same as asking What is our mission?. Mission statement distinguishes one business into a similar type of enterprise. It is a declaration of an organizations reason of being. A mission statement will tell people what you do, for whom you do it, and how will you get it done. It reveals what an organization wants to be and whom it wants to serve. Having a well-defined mission statement enables the organization to be identified and distinct from its competitors by incorporating its core values that it believes. Because a mission statement is often the most visible and public part of the strategic-management process, it is important that it includes all of these essential components: 1. Customers---Who are the firms customers? 2. Products or services---What are the firms major products or services? 3. Markets---Geographically, where does the firm compete? 4. Technology---Is the firm technologically current? 5. Concern for survival, growth, and profitability---Is the firm committed to growth and financial soundness? 6. Philosophy---What are the basis beliefs, values, aspirations, and ethical priorities of the firm? 7. Self-concept---What is the firms distinctive competence or major competitive advantage? 8. Concern for public image---Is the firm responsive to social, community, and environmental concerns? 9. Concern for employees---Are employees a valuable asset of the firm? GOALS Goals are broad statements of something that an organization wants to achieve. Goals are directed towards the organizations mission. In order for the management to implement its mission, they must set goals that must be attained. It may be short-term or long term in nature. Well written goals are believable and attainable and based on the identifiable needs. Goals must not be necessarily measurable.

OBJECTIVES A lot of times, goals and objectives are used interchangeably but in fact theyre different. As stated before, goals are statements of something that they want to achieve. Goals are something unquantifiable and cannot be measurable. On the other hand, objectives are statements of specific, measurable and attainable outcomes that contribute to the achievement of a particular goal. Objectives are based on goals and normally states how you are going to get there and achieve your goal. CONCLUSION Every organization is unique and distinct from each other. There may be some similarities but still there are certain things that distinguish one from another. Those uniqueness should be incorporated and seen into the vision, mission, goals and objectives developed by an organization. It is important that the management should make an effort in developing these statements because it defines what a business is, what they want to be and how are they going to do that. Putting significance in this stage of strategic planning enables an organization to further enhance its operations and services to its customers and thereby leading its business into what they want to be. EXAMPLE A great example of a company that clearly defines its vision, mission and objectives is the Shell Refining Company. Vision To be the Top Performing and Most Admired Refinery in Asia Mission To continuously deliver shareholder value by: Manufacturing and supplying oil products and services that satisfy the needs of our customers Constantly achieving operational excellence Conducting our business in a safe, environmentally sustainable and economically optimum manner Employing a diverse, innovative and results-oriented team motivated to deliver excellence Objectives We are committed to deliver sustainable excellence in business performance by focusing on the following: Benefit our shareholders Realize the potential of our people

Meet our customer requirements Maximize refinery margins Safeguard asset integrity Deliver structural cost reductions Sustain a robust management system Deliver continuous sustainable Health, Safety, Security and Environmental excellence