Module II:

Mission & Vision

Concept of Strategic Intent

 Strategic intent is a concept used in business and strategic

management to define the long-term goals and purpose of an
organization. It is the driving force behind a company's vision and
mission, providing clarity and direction for achieving its ultimate
objectives.

 Definition
Strategic intent refers to the clear and focused goal or aspiration that
an organization strives to achieve over time. It involves setting an
ambitious target that motivates the entire organization.
Characteristics of Strategic Intent
• Ambitious and Future-Oriented:
Strategic intent focuses on long-term goals and aims to achieve something significant.

• Clear and Specific:

It is defined in a way that all members of the organization understand and can align their
efforts toward achieving it.

• Focused:
Strategic intent is not vague or broad. It is specific and measurable, providing a roadmap
to success.

• Inspirational:
It inspires employees and stakeholders by giving them a sense of purpose and
excitement about the organization’s future.

Strategic intent goes beyond merely setting goals; it is about creating a deep sense of
purpose that unites all aspects of the organization’s strategies and operations.
 Vision
 A Vision Statement describes the desired future state of an organization. It is a statement of what the
company aspires to become or achieve in the long run.
• Definition: A vision is a clear, concise, and compelling statement that paints a picture of the organization’s
future. It provides direction for decision-making and sets the tone for how the organization will grow and evolve.
• Characteristics of Vision:
• Inspiring: A vision statement motivates employees and stakeholders by giving them a sense of purpose.
• Long-Term: It focuses on the long-term future (typically 5-10 years or more).
• Future-Oriented: Vision is about where the organization is headed, not about what it is doing today.
• Ambitious but Achievable: A vision should push the organization toward greatness but remain realistically
achievable.
• Purpose of Vision:
• Direction: It guides strategic planning and decision-making processes.
• Alignment: Ensures that all team members work toward a common, overarching goal.
• Inspiration: Motivates the workforce by providing a sense of meaning and purpose.
• Examples:
• Microsoft: "To help people and businesses throughout the world realize their full potential."
• Amazon: "To be Earth’s most customer-centric company, where customers can find and discover anything they might
want to buy online."
 Mission
 A Mission Statement explains the core purpose and primary objectives of an organization. It defines what the
organization does, who it serves, and how it serves them.
• Definition: The mission is a brief description of an organization’s purpose, outlining the reason it exists, the
products or services it provides, and the target audience it serves. It focuses on the present and short-term goals
rather than long-term aspirations like the vision.
• Characteristics of Mission:
• Purposeful: It defines the organization's primary reason for existence.
• Action-Oriented: Describes what the organization does to achieve its purpose.
• Customer-Focused: Typically highlights the target audience, such as customers, clients, or communities.
• Specific and Clear: Unlike the vision, the mission statement should be focused and easily understood.
• Purpose of Mission:
• Guidance for Day-to-Day Decisions: It helps employees understand their roles and responsibilities in fulfilling the
organization’s purpose.
• Focus: It helps to focus the organization's efforts on key activities that align with its overall purpose.
• External Communication: It communicates to customers, investors, and stakeholders what the organization stands for
and what it aims to accomplish.
• Examples:
• Google: "To organize the world’s information and make it universally accessible and useful."
• Tesla: "To create the most compelling car company of the 21st century by driving the world's transition to electric
vehicles."
 Formulation of a Vision

Statement:
Formulating a vision statement requires understanding the desired future for the organization
and articulating it in a way that is clear, inspiring, and motivational. Key steps to formulate a
vision statement include:
• Step 1: Understand the Organization’s Values and Culture
• The vision should align with the values and culture of the organization. It reflects what the company
stands for and its overall ethos.
• Step 2: Define the Long-Term Aspiration
• What is the ultimate goal the company wants to achieve in the future? This could be becoming an
industry leader, achieving global expansion, or creating groundbreaking products.
• Step 3: Make It Future-Oriented
• The vision should be forward-thinking, providing a roadmap for growth over the next 5-10 years or more.
• Step 4: Keep It Concise and Clear
• The vision statement should be short, memorable, and easily understood by both internal and external
stakeholders.
• Step 5: Inspire and Motivate
• The vision should inspire employees, stakeholders, and customers to be part of the organization’s
journey.
 Formulation of a Mission

Statement:
Formulating a mission statement focuses on defining the organization’s purpose, what it does,
and who it serves. Key steps to formulate a mission statement include:
• Step 1: Identify the Organization’s Core Purpose
• What is the organization’s primary reason for existence? This could include improving lives, offering
innovative products, or providing services to specific communities.
• Step 2: Define the Products or Services Offered
• Clearly articulate what the company does and what products or services it offers to fulfill its purpose.
• Step 3: Define the Target Audience
• Identify the key stakeholders or customers the company serves. This could be specific demographics,
businesses, or regions.
• Step 4: Focus on Action
• The mission should describe the actions the company takes to fulfill its purpose, which often involves
products, services, or strategies.
• Step 5: Keep It Short and Simple
• Like the vision statement, the mission statement should be concise, focused, and easily understood by
everyone in the organization.
Key Differences Between Vision
and Mission:
1. Time Horizon:
1. Vision is future-focused and paints a picture of the organization’s aspirations.
2. Mission is present-focused and details the current purpose, operations, and goals.
2. Purpose:
1. Vision provides a long-term goal or destination, guiding the direction of the organization.
2. Mission describes the core purpose of the organization, the reason for its existence.
3. Scope:
1. Vision is broad, abstract, and aspirational.
2. Mission is specific, concrete, and action-oriented.
4. Inspiration vs. Practicality:
1. Vision is meant to inspire and align the organization toward a common future goal.
2. Mission is meant to provide clarity on how to execute and achieve that vision in the
present.
 Vision:
1. Future-Oriented Perspective:
1. A vision statement defines what an organization aspires to achieve in the future.
2. It provides a long-term direction and sets the ambition for growth and success.
3. Vision is often described as a "dream" or a "destination," where the organization
aims to be at a certain point in the future (e.g., "to be the global leader in
sustainable energy solutions").
4. The vision statement is often concise, inspirational, and focused on the larger
impact the organization wants to make.
2. Inspirational and Motivational Perspective:
1. Vision inspires employees, customers, and stakeholders by presenting a compelling
picture of the future.
2. It creates a sense of purpose and guides the organization’s decisions and actions.
3. A strong vision statement motivates people to contribute towards achieving the
organization’s goals.
•Strategic Perspective:
•From a strategic standpoint, a vision provides the "why" behind an organization's strategy.
•It helps to align the efforts of the workforce and resources toward a common objective.
•It’s a guiding star that shapes the organization's culture, values, and operational plans.

•Aspirational Perspective:
•In this view, the vision is about setting an idealistic goal that may not be fully attainable at
the present moment but provides the aspiration to aim higher.
•It challenges the organization to grow, innovate, and push boundaries.
 Mission:
1. Present-Oriented Perspective:
1. A mission statement defines the current purpose and activities of the organization.
2. It articulates what the organization does, whom it serves, and how it does it, providing
clarity on its core functions and values (e.g., "To provide affordable healthcare
services to communities in need").
3. Unlike the vision, which is future-focused, the mission is focused on the present and
what is being done today to achieve the broader vision.
2. Action and Operational Perspective:
1. From an operational standpoint, the mission serves as a guide for day-to-day
activities.
2. It helps the organization stay focused on its core objectives and ensures that all
efforts align with its fundamental purpose.
3. It’s action-oriented and pragmatic, outlining the "how" of organizational operations.
•Customer-Centered Perspective:

•The mission statement is often designed with the customer or the external
stakeholder in mind, answering the question, "What value are we providing to our
customers?"
•It clarifies the organization's approach to delivering products, services, or
experiences that address customer needs.

•Cultural Perspective:

•The mission can be seen as a reflection of the organizational culture and values.
•It’s often deeply connected to the ethical standards, social responsibilities, and
principles that the organization stands for.
•It ensures that employees understand and align with the values that guide their
behaviors and decisions.
 Different Perspectives on Vision and Mission in Various Contexts:
1. Corporate Perspective:
1. In the corporate world, the vision and mission statements are crucial in defining
competitive advantages, differentiation, and corporate identity.
2. They guide long-term planning, strategic decisions, and brand positioning.
2. Non-Profit Perspective:
1. For non-profit organizations, the vision and mission often center around societal
impact, social change, or community service.
2. The mission focuses on meeting the needs of specific groups, while the vision offers
an idealized version of the social change they aim to create.
 Startups Perspective:
• Startups often have bold, risk-taking vision statements to push innovation, but
their mission focuses on solving immediate problems and gaining traction in
the market.
• The vision for startups is frequently more flexible and adaptable due to the
dynamic nature of their development.
•Government Perspective:

•In the public sector, the vision and mission are typically aimed at serving public
interests and societal good.
•The mission is focused on public service, while the vision focuses on long-term goals
like national development, security, or prosperity.

•Academic Perspective:

•For educational institutions, the vision is often centered on shaping future

generations, while the mission focuses on education, research, and community
engagement.
Business Definition
 A business is an organization or entity that engages in activities
related to the production, provision, or exchange of goods and
services to satisfy customer needs or demands.
 The ultimate goal of a business is to generate profit and create value
by meeting those needs in the most efficient and effective manner
possible. A business can be structured in various ways, such as:

 Sole Proprietorship – Owned and operated by one person.

 Partnership – Owned by two or more individuals who share profits,
losses, and responsibilities.
 Corporation – A separate legal entity owned by shareholders with
limited liability.
Key Elements of a Business

• Goods and Services: The core offering of a business.

• Market: The audience or customer base that purchases the
goods or services.
• Revenue Generation: How the business generates income.
• Value Creation: The benefit provided to customers, which
encourages them to pay for the product or service.
• Profit: The difference between the revenue earned and the
expenses incurred.
Business Model Definition

 A business model refers to the framework or plan that outlines

how a company creates, delivers, and captures value. It
describes the fundamental way in which a business operates,
makes money, and sustains itself over time. A business model
can vary greatly depending on the industry, target market, and
specific strategies of a business. It’s an essential tool for guiding
and structuring the operations of the business.
Key Components of a
Business Model

•Value Proposition
What value does the business offer to the customers? Why would customers choose this
product/service over competitors?
•Customer Segments
Who are the target customers? Are they individuals, businesses, or both? Understanding
customer demographics, behaviors, and needs is crucial.
•Revenue Streams
How does the business make money? This could include direct sales, subscription fees,
advertising revenue, licensing, etc.
•Channels:
How does the business deliver its product or service to its customers? This could be
through physical stores, e-commerce platforms, direct sales teams, etc.
•Customer Relationships:
How does the business interact with its customers? It may involve personalized services,
automated systems, or customer support.
•Key Resources:
What critical assets are required to operate the business? These can be physical,
intellectual, human, or financial resources.
•Key Activities:
What are the core activities that a business must perform to deliver its value proposition?
These could include product development, marketing, or customer service.
•Key Partnerships:
Who are the external organizations or individuals the business works with to succeed?
Partnerships can include suppliers, investors, or strategic allies.
•Cost Structure:
What are the costs associated with running the business? This includes fixed and variable
costs related to key activities, resources, and partnerships.
Types of Business Models

•B2B (Business to Business): Businesses sell goods or services to other businesses.

•B2C (Business to Consumer): Businesses sell goods or services directly to consumers.
•C2C (Consumer to Consumer): Individuals sell goods or services to other individuals
(e.g., marketplaces like eBay).
•Subscription Model: Customers pay a recurring fee to access products or services.
•Freemium Model: Basic services are provided for free, with paid premium features
available.
•On-Demand Model: Businesses offer goods or services to customers on-demand (e.g.,
ride-sharing apps like Uber).
•Marketplace Model: A platform connects buyers and sellers to conduct transactions.