Strategic Vision and Business Success

Development Strategies, Strategy

Strategic Vision and a clear definition of Business Success are vital elements of strategic
planning for all creative businesses and cultural enterprises.

A Vision sets out the aspirations for the future of a creative business or cultural enterprise.
This Vision (or ‘Strategic Vision’) is the ‘dream’ of the future, a picture painted in words,
which is intended to inspire people by appealing to the heart as well as the head.

“Start with the end in mind”, says Steven R Covey in his bestselling book ‘The Seven Habits
of Highly Effective People’.
One of the leader’s main functions is to inspire people towards a vision. This is ‘Inspirational
Leadership’.
A Strategic Vision must be a Shared Vision, embraced by everyone in the business or
organisation – not only the leader, the senior management team and key staff.

“A Vision says something that clarifies the direction in which an organisation needs to
move.”

A vision statement focuses on tomorrow and what an organization

wants to ultimately become. A mission statement focuses on today and
what an organization does to achieve it. Both are vital in directing goals

What is a mission statement?

Your mission statement drives the company. It is what you do/the core of
the business, and from it come the objectives and finally, what it takes to
reach those objectives. It also shapes your company’s culture.
 Mission statement questions look like:

 What do we do?

 Whom do we serve?

 How do we serve them?

What is a vision statement?

Your vision statement gives the company direction. It is the future of the
business, which then provides the purpose.

The vision statement is about what you want to become. It’s aspirational.

Vision statement questions look like:

 What are our hopes and dreams?

 What problem are we solving for the greater good?

 Who and what are we inspiring to change?

The vision statement promotes growth, both internally and externally. A strong
vision helps teams focus on what matters the most for their company. It also
invites innovation. A purpose-driven company envisions success as a whole,
because they know what success means for their company.

On the flip side, a lack of vision is a road to nowhere for a business. Imagine
this: stagnation, outdated processes, moving without purpose, feeling
uninspired. Can a company even survive without a clear vision? You know the
answer to that one.
ompany: Whole Foods

Mission: Whole Foods Market is a dynamic leader in the quality food

business. We are a mission-driven company that aims to set the standards of
excellence for food retailers. We are building a business in which high
standards permeate all aspects of our company. Quality is a state of mind at
Whole Foods Market.

Vision: Whole foods, Whole People, Whole Planet.

Company: Facebook

Mission: To give people the power to build community and bring the world
closer together.

Vision: People use Facebook to stay connected with friends and family, to
discover what’s going on in the world, and to share and express what matters
to them.

Company: Sony

Mission: A company that inspires and fulfills your curiosity.

Vision: Using our unlimited passion for technology, content and services to
deliver groundbreaking new excitement and entertainment, as only Sony can.

Company: Cisco

Mission: Shape the future of the Internet by creating unprecedented value

and opportunity for our customers, employees, investors, and ecosystem
partners.

Vision: Changing the way we work, live, play, and learn.

Company: Ikea

Mission: Offer a wide range of well-designed, functional home furnishing

products at prices so low that as many people as possible will be able to
afford them.

Vision: To create a better everyday life for the many people.

Company: Ebay

Mission: To be the world’s favorite destination for discovering great value and
unique selection.

Vision: Our vision for commerce is one that is enabled by people, powered by
technology, and open to everyone

Company: Samsung

Mission: Inspire the world with our innovative technologies, products and
design that enrich people’s lives and contribute to social prosperity by creating
a new future.

Vision: Inspire the world. Create the future.

Company: Toyota USA

Mission: To attract and attain customers with high-valued products and

services and the most satisfying ownership experience in America.

Vision: To be the most successful and respected car company in America.

ompany: LinkedIn

Mission: To connect the world’s professionals to make them more productive

and successful.

Vision: To create economic opportunity for every member of the global

workforce
Company: TED

Mission: Spread ideas.

Vision: We believe passionately in the power of ideas to change attitudes,

lives and, ultimately, the world.

ompany: Patagonia

Mission: Build the best product, cause no unnecessary harm, use business to
inspire and implement solutions to the environmental crisis.

Vision: A love of wild and beautiful places demands participation in the fight
to save them, and to help reverse the steep decline in the overall
environmental health of our planet.

Company: Amazon

Mission: We strive to offer our customers the lowest possible prices, the best
available selection, and the utmost convenience.

Vision: To be Earth’s most customer-centric company, where customers can

find and discover anything they might want to buy online

Company: Tesla

Mission: To accelerate the world’s transition to sustainable energy.

Vision: To create the most compelling car company of the 21st century by
driving the world’s transition to electric vehicles.

The mission is what people do in order to achieve the vision. It is the how (mission) versus
the why (vision)

Vision statements are future-based and meant to inspire and give direction to employees of
the company rather than customers. ... Although both mission and vision statements
should be core elements of your organization, a vision statement
It describes the organization's purpose and its overall intention. The mission statement
supports the vision and serves to communicate purpose and direction to employees,
customers, vendors and other stakeholders. See SHRM's Company Mission Statement
Examples for a variety of samples

Organizations summarize their goals and objectives in mission and

vision statements. Both of these serve different purposes for a
company but are often confused with each other. While a mission
statement describes what a company wants to do now, a vision
statement outlines what a company wants to be in the future.
The Mission Statement concentrates on the present; it defines the
customer(s), critical processes and it informs you about the desired
level of performance.
The Vision Statement focuses on the future; it is a source of inspiration
and motivation. Often it describes not just the future of the organization
but the future of the industry or society in which the organization hopes
to effect change.

Mission Vision Statement

Statement
About A Mission statement talks about HOW you will get to where you A Vision
want to be. Defines the purpose and primary objectives related statement
to your customer needs and team values. outlines
WHERE you
want to be.
Communicates
both the
purpose and
values of your
business.

Answer It answers the question, “What do we do? What makes us It answers the
different?” question,
“Where do we
aim to be?”

Time A mission statement talks about the present leading to its A vision
future. statement
Mission Vision Statement
Statement
talks about
your future.

Function It lists the broad goals for which the organization is formed. Its It lists where
prime function is internal; to define the key measure or you see
measures of the organization's success and its prime audience is yourself some
the leadership, team and stockholders. years from
now. It
inspires you to
give your best.
It shapes your
understanding
of why you are
working here.

Change Your mission statement may change, but it should still tie back As your
to your core values, customer needs and vision. organization
evolves, you
might feel
tempted to
change your
vision.
However,
mission or
vision
statements
explain your
organization's
foundation, so
change should
be kept to a
minimum.

Developing a statement What do we do today? For whom do we do it? What is the Where do we
benefit? In other words, Why we do what we do? What, For want to be
Whom and Why? going
forward?
Mission Vision Statement
Statement
When do we
want to reach
that stage?
How do we
want to do it?

Features of an effective Purpose and values of the organization: Who are the Clarity and
statement organization's primary "clients" (stakeholders)? What are the lack of
responsibilities of the organization towards the clients? ambiguity:
Describing a
bright future
(hope);
Memorable
and engaging
expression;
realistic
aspirations,
achievable;
alignment
with
organizational
values and
culture.

Purpose
The mission statement guides the day-to-day operations and decision-making of
the organization. It helps in tactical planning and "rallying the troops" around a
common near- to medium-term goal. The mission statement helps members of
the organization get on the same page on what they should do and how they
should do it.
The vision statement is, in a sense, loftier. It outlines the worldview of the
organization and why it exists. It attracts people — not just employees but also
customers and vendors — who believe in the vision of the organization
 What's in a Vision Statement?
When developing a vision statement, it should be seen that the following
questions are answered:

 What do we want to do going forward?

 When do we want to do it?
 How do we want to do it?

Features of an effective vision statement include:

 Clarity and lack of ambiguity

 Paint a vivid and clear picture, not ambiguous
 Describing a bright future (hope)
 Memorable and engaging expression
 Realistic aspirations, achievable
 Alignment with organizational values and culture
 Time bound if it talks of achieving any goal or objective

What to Include in a Mission Statement

When developing a mission statement, it should be seen that the following
questions are answered:

 What do we do today?
 For whom do we do it?
 What is the benefit?

Features of an effective mission statement are:

 Purpose and values of the organization

 What business the organization wants to be in (products or services, market) or
who are the organization's primary "clients" (stakeholders)
 What are the responsibilities of the organization towards these "clients"
 What are the main objectives that support the company in accomplishing its
mission

The Competitive Profile Matrix (CPM) is a strategic analysis that allows you to compare your
company to your competitors, in such a way as to reveal your relative strengths and
weaknesses
 Cpm matrix
1. 1. Competitive Profile Matrix F11011 – F11020
2. 2. Conclusion Understanding a CPM for a company Building the matrix The competitive
profile matrix Need for an external comparisonContents
3. 3. Requires competitive intelligence in the following spheres ◦ Economic ◦ Social ◦ Political ◦
Legal ◦ Technological Develop appropriate strategies to maximize opportunities and
counter threats Understand key opportunities and threatsNeed for ExternalComparison
4. 4. Consultants – Boston Consulting Group, Deloitte Government – Department of
Commerce, Science and Technology Magazines – Barrons, Forbes, Washington Post
Internet Sources – New York Stock Exchange, Investor Guide, BigBook.com Indexes –
Wall Street Index, Business Periodicals IndexExternal Information Sources
5. 5. Competitive Profile ◦ Bargaining power of Matrix consumers External Factor Forces
Model Evaluation (EFE) ◦ Rivalry among Matrix competitors ◦ Key factors ◦ Potential entry of
◦ Importance of new competitors factors ◦ Potential ◦ Ranking for factors development of ◦
Sum of weighted substitute products score ◦ Bargaining power of suppliers  Porter’s Five
Tools for an External Audit
6. 6. The Competitive Profile Matrix StepsStep 1 • Identify key factors • Assign factors to each
factor ranging from 0 to 1Step2 • Rate each factor from 1 to 4 for each firm. (1 –
GreatestStep 3 weakness 4 – Biggest Strength) • Calculate weighted score for each
factorStep 4 • Find total weighted score for each firmStep 5
7. Comparative analysis made easier Includes both internal and external factors as
parameters Strong and weak points of firm with respect to competitors found out Critical
success factors identifiedAdvantages
8. 10. Not a substitute for intuitive judgement Gives relative strength of firm, not an exact
number Possible errors in factor weightage Differences in overall scores of two firms do
not reveal by how much a firm is better than the otherLimitations

1.
Internal Factor Evaluation (IFE) matrix is a strategic management tool for auditing or
evaluating major strengths and weaknesses in functional areas of a business. ... The
Internal Factor Evaluation matrixor short IFE matrix is used in strategy formulation.
IFE Matrix is an analytical technique related to the SWOT analysis. IFE is an acronym of the
Internal Factor Evaluation. IFE Matrix evaluates the internal position of the organization or its
strategic intent
1. 1. IFE Matrix
2. 2. What is the IFE Matrix? • Internal Factor Evaluation Matrix • A summary step in conducting
internal strategic management audit. • Summarizes and evaluates the major strengths and
weaknesses in the functional areas of a business.
3. 3. Components • Internal Factors – list of all strengths and weaknesses • Weights – Scale of
0 to 1 • Rating – Scale of 1 to 4 – Strengths – 4-major strength; 3- minor strength –
Weaknesses – 1-major weakness; 2-minor weakness • Total Weighted Score
4. 4. Construction of IFE Matrix • Make a table. In the first column, list down all the strengths
and weaknesses. • In the second column, assign weights to each factor ranging from 0.0
(not important) to 1 (most important). • The sum of all weights must be equal to 1.
5. 5. Construction of IFE Matrix • In the third column, rate each factor ranging from 1 to 4
(where: 1 = major weakness, 2 = minor weakness, 3 = minor strength, 4 = major strength.)
6. 6. Construction of IFE Matrix • In the fourth column, calculate weighted score by multiplying
each factor’s score by its rating. • Find the total weighted score by adding the weighted
scores for each variable.
7. 7. Resource-Based View
8. 8. What is RBV? • The resource-based view focuses on internal resources, the firm's
strengths and weaknesses, in contrast to the positional or environmental models of
competitive advantage which focuses on opportunities and threats. (Barney, 1991)
9. 9. Capability capacity of an integrated set of resources to integratively perform a task or
activity Resources Inputs into a firm’s production process The Language of Resources
and Capabilities
10. 10. Strategic Assets/Core Competencies Resources and capabilities that can earn rents.
Rents A surplus of revenue over cost. 
11. 11. Organizational Resources - include firm structure, planning processes, information
systems, trademarks, copyrights, databases. Intangible Resources - include all employees,
training, experience, intelligence, knowledge, skills, abilities  Tangible Resources – include
all plant and equipment, location, technology, raw materials and machines Types of
Resources
12. 12. Rare possessed by few, if any, current and potential competitors Valuable allow the
firm to exploit opportunities or neutralize threats in its external environment. Resources and
capabilities lead to Competitive Advantage when they are:
13. 13. Non-substitutable the firm must be organized appropriately to obtain the full benefits of
the resources in order to realize a competitive advantage Costly to imitate when other firms
either cannot obtain them at a much higher cost 
14. 14. Criteria for Sustainable Competitive Advantage and Strategic Implications
15. 15. Porter’s Competitive Strategies
16. 16. Who is Michael Porter? • Described a category scheme consisting of three general types
of strategies that are commonly used by businesses to achieve and maintain competitive
advantage.
17. 17. Three Generic Strategies 1. Cost Leadership – a firm sets out to become the low cost
producer in its industry. – Targets a broad market
18. 18. • Competitive Advatages: – by reducing production costs and therefore increasing the
amount of profit made on each sale as the business believes that its brand can command a
premium price or – by reducing production costs and passing on the cost saving to
customers in the hope that it will increase sales and market share
19. 19. Example: • Southwest Airlines – The airline industry has typically been an industry where
profits are hard to come by without charging high ticket prices. Southwest Airlines challenged
this concept by marketing itself as a cost leader.
20. 20. Risk: • other firms may be able to lower their costs as well. As technology improves, the
competition may be able to leapfrog the production capabilities, thus eliminating the
competitive advantage.
21. 21. DIFFERENTIATION – a firm seeks to be unique in its industry along some dimensions
that are widely valued by buyers. – It selects one or more attributes that many buyers in an
industry perceive as important, and uniquely positions itself to meet those needs.
22. 22. Example: • For the health and wellness section... • PROCTOR AND GAMBLE -
Differentiation of health and hygiene products bet Johnson and Johnson with variants in
product and price sufficient though not leader in this segment
23. 23. Risk: • The risks associated with a differentiation strategy include imitation by
competitors and changes in customer tastes.
24. 24. FOCUS – rests on the choice of a narrow competitive scope within an industry. The
focuser selects a segment or group of segments in the industry and tailors its strategy to
serving them to the exclusion of others.
25. 25. Two Variants FOCUSED COST LEADERSHIP • In cost focus a firm seeks a cost
advantage in its target segment
26. 26. Example: • VENDING MACHINES -This strategy allows the firm to offer large demand at
very low prices and still remain profitable.
27. 27. FOCUSED DIFFERENTIATION • differentiation focus a firm seeks differentiation in its
target segment. Both variants of the focus strategy rest on differences between a focuser's
target segment and other segments in the industry.
28. 28. Example: • One example is Breezes Resorts, a company that caters to couples without
children. The firm operates seven tropical resorts where vacationers are guaranteed that
they will not be annoyed by loud and disruptive children.
29. 29. • Focus (Niche) Strategy – Under a focus strategy a business focuses its effort on one
particular segment of the market and aims to become well known for providing
products/services for that segment.
30. 30. Key Points: • Cost leadership – can benefit either by gaining market share through
lowering prices or by maintaining average prices and therefore increasing profits.
31. 31. • DIFFERENTIATION STRATEGY – win market strategy offering unique features that
are valued by their customers
32. 32. • FOCUS STRATEGY – involves achieving cist leadership of differentiation within niche
market in ways that are not available to more focused players.
33. 33. “STUCK IN THE MIDDLE” (Best Cost Strategy) – attempt to adopt all three strategies;
cost leadership, differentiation and niche (focus). A business adopting all three strategies is
known as "stuck in the middle". They have no clear business strategy and are attempting to
be everything to everyone.
34. 34. STEPS IN CHOOSING THE RIGHT GENERIC STRATEGY 1.) Carry out SWOT
Analysis 2.) Use Five Forces Analysis 3.) Compare SWOT Analysis f the viable strategic
options with the results of your five forces analysis

35.