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NAVARRO, KAYCEE B.

3 BSAT | TF 2:30 4:00 PM

Business Policy & Strategy

#1 Output

Definition of Terms and its Examples

Vision, Mission, Objectives, Strategies and Tactics These are 5 statements which form
the two aspects of the business;

What the organizations want to achieve reflected by Vision, Mission and


Objectives

And how they are going to achieve the above what: reflected by the Strategies
and Tactics as these are long term and short term implementation plans
respectively.

A real strength within organizations is gained when these statements are defined with
clarity, completeness, and are consistent with each other. This implies that there should
be an alignment between all of these statements. This alignment can be ensured by the
assessment of:

Definition: Whether these statements are defined for the organization for the
foundation of success?

Clarity: If these statements provide a direction and plan for the work,
organizational resources are carried out?

Communication: Are Organization resources aware about these statements and


use them as a context of the work, they do?
Commitment: Whether these statements make people supportive to the
organization for their intent and whether they are agreed to the content of these
statements?

If these statements are defined by above characteristics and answer of these questions
are Yes, organization internal capability is significantly ensured and if any of the above
is lacking, there is a potential of Weakness which in turn limits or undermines the
organizations efforts.

So lets begin with comprehension of these statements and then how these statements
can be used to assess the internal capabilities and limitations of organizations-

1. Vision: A vision is a Big Picture Idea of What the organization wants to achieve.
What you want to achieve, something in Future

A vision statement should inspire the people in organizations, people are excited to be
part of What, and motivated to put their energy and time to achieve the Future

Examples:

Ford - To become the world's leading Consumer Company for automotive products
and services.

Mazda - To create new value, excite and delight our customers through the best
automotive products and services.

Honda - To Be a Company that Our Shareholders, Customers and Society Want

2. Mission: A Mission is about what the organization does to achieve the vision.

A mission is an action statement to achieve the vision. A mission statement is not required
to be inspirational; instead, it provides a clear focus about what an organization does and
what it doesnt.
A mission statement is simple, direct and operative, a great mission statement is:

Short: Mission statement should be easy to remember, each person in


organizations should be aware of the mission statement in order to use in context with
the work he/she does.

Simple: Mission statement language should be of everyday life, words like


stakeholder values, financial goals and best practices are not used in daily life. For
example a mission statement Help people in achieving work using best
practices How many people dream about best practices? The answer is very
few; do you really believe, people talk in such language. The answer is simply NO.

Operative: A mission statement should provide a clear direction and focus about
what an organization does and a clear route about initiative and resource
allocation.

So what kinds of resources are needed for the above mentioned mission statement for
agriculture business? Probably SME, who can provide their services for the development
and facilitation of the agriculture business, and farmers who may be involved for the
financial support in the venture.

A mission statement should help to understand Who we are, What we do and to


which industry we belong to for example a mission statement like Increasing customer
satisfaction well, virtually it is impossible, anyways does it provide to which industry
a mission belongs to? Or what organization control? The answer is no and hence we
cannot claim it as a mission statement.

An organization should try to find out a mission statement, which can drive them.

Examples:

GAP - At Gap Inc. we never stop moving. It takes thousands of passionate,


dedicated and talented employees around the world to deliver the merchandise
and shopping experience our customers expect and deserve.
Nike - To bring inspiration and innovation to every athlete in the world

Starbucks - Establish Starbucks as the premier purveyor of the finest coffee in the
world while maintaining our uncompromising principles while we grow.

3. Goals and Objectives: An objective is time sensitive statement to achieve the goals
of the organization and defined in measurable terms. Goals are statements of milepost
to achieve the vision, goals describe what you want to achieve through your efforts.

Goals for the above mentioned vision of agriculture business can be defined as, but not
limited to: Improve profitability, Increase volume, Provide stability

A goal is a broad definition, saying improve profitability it lacks the specifics


and defined in general and broad terms. Objectives on the other hand, are quite specific
and further define the goal. To continue with profitability example, objectives can be
defined as:

15k$ net profit as % of sale in a year

10k$ net profit as % of investment in a year.

Now, while explaining, objectives a SMART acronym is commonly used:

Specific: It is entirely job related, in above example sales and investment is


related to the job.

Measurable: Objectives are always defined in measurable terms, we can measure


above objectives using target of 10k$ and 15k$ profit.

Attainable: Objectives should be attainable within provided environment and


resources and organizations need to analyze what is required to achieve defined
objectives and need to continuously need to make sure it.

Realistic Did you write the goal realistically? For example, did you address all the
challenges of completing the goal and provide the necessary resources.
Time Bounded: Objectives should be achievable within the provided time period
and in our example we identified time a year.

So without question, goals and objectives are similar (not same) and complement each
other with goals, there is no pressure to be specific and in fact goals are open ended.
Setting goals are effective as a broad outline, however, due to its fundamental nature of
being broad and open ended, these are not the ideal way to achieve something.

Whenever you want to achieve something define goal and then define a series of
objectives to achieve those goals.

To summarize, goals are broad direction setting statements, objectives are more specific
and both are designed to get you to take an action.

Examples:

1. Reduce overall budget costs by 10% by 20xx


2. Increase revenues by 20% by 20xx
3. Increase customer satisfaction by 5 pts by 20xx

4. Strategies: Strategies are long term implementation plans to achieve the goals and
objectives. These statements define how you can succeed in achieving your mission and
stay along in the completion. Strategies are likely to be defined following a SWOT
analysis as both external and internal environment assessment is needed as an input to
develop strategies.

Strategic options may include, the development of market or product or in some


diversified cases, both the market and product development.

Example strategic options like Increase Market (sale in customers), New Product (like
product enhancement, product line extension, and products at different quality levels)
and new distribution channel are identified to achieve goals and objectives.
A strategy like, design, social media promotion for next one year can be identified for the
above mentioned objectives. We can define one or many strategies for a combination of
goals and objective.

Examples:

Sales Strategy An online retailer develops a strategy to offer a premium


membership for a fee that will include free shipping on orders of any dollar amount.
The strategy is designed to improve revenue since premium members will have
incentive to order more often to take advantage of the free shipping. The strategy
makes assumptions about future shipping costs and how customers will behave
when they have unlimited access to free shipping.

Sustainability Strategy A courier develops a strategy to convert its entire fleet of


delivery vehicles to electric. The goal of the strategy is to reduce energy costs and
improve the sustainability of the company's operations. The strategy makes
assumptions about future grid electricity and solar panel costs.

Information Technology Strategy A bank develops an IT strategy to implement


multi-factor authentication for all its customer systems. The goal of the strategy is
to reduce costly security and fraud incidents. The strategy makes the assumption
that multi-factor authentication will be effective against future security threats.

5. Tactics: Tactics are short term implementation or action plan to deliver the long term
strategy.

A grass root level action plans are defined to ensure daily activities are in line with
achieving the relevant strategy(s).

Tactics like, a sales staff member is expected to do 10 social media activity daily, could
be an example to deliver a long term strategy.
Examples:

Innovation A solar panel manufacturer discovers a revolutionary new technology


that dramatically improves the conversion efficiency of solar cells. Such a dramatic
improvement wasn't anticipated, the company quickly prioritizes significant
resources to commercializing the technology.

Mergers & Acquisitions A large robotics company acquires a small competitor


with an innovative product after its stock price suddenly falls by 70% in less than
a month.

Marketing A chain of coffee shops faces a customer backlash after they raise
coffee prices by 20%. In response, a competing fast food chain that has a long
term strategy to sell more coffee, offers free coffee to all customers on weekday
mornings.

Once you have defined all of these 5 (Vision, Mission, Objectives, Strategies and Tactics)
statements, you will have the foundation of your business. For this reason it is important
to know that these 5 statements are open acted with each other.

Now these statements can be used to assess the internal capabilities and limitations of
an organization, these statements are examined for their completeness, clarity and
awareness within organizations, if these qualities are missing then a change is needed
within organizations to solve the identified organizational level internal weakness. It
should provide a clear focus and direction and should serve as an internal strength for
the organization.