UNIT 2

Business Strategy: Framework

What is a strategy framework?

Strategy frameworks, are methods that businesses use to outline plans to

achieve future goals. It aims to demonstrate how a business or department
plans to use projects and other initiatives to uphold the overall vision of
stakeholders. Strategy frameworks are numerous. There is one for any
scenario and there’s a chance that selecting one may actually overwhelm
someone new to the field.
Some of the most commonly used strategy frameworks from among them
to helps one select the best which suits your purpose.
Strategy frameworks are tools that help structure business thinking and
guide businesses as they grow and accomplish their missions.
They can also be used to analyze business issues and develop strategies.
And strategy consultants often use them to communicate their solutions to
their clients.
These are the types of initiatives and business objectives that you can use
strategic frameworks for:
 Building brand awareness
 Expanding into a different market or niche area
 Incorporating more sustainable practices into business activities
 Developing a strong customer base
 Reducing long-term debts or completing getting rid of them within
five years
Business vision and mission

A vision articulates the position that an organization would like to attain in

the distant future. It helps in creating a common identity and a shared
sense of purpose.
A good vision is one which foster risk taking and experimentation. It
answers the question: ‘What will success look like?’

The vision of an organization must possess the following characteristics:

It is created by consensus.
It forms a company’s future mental image.
It forms the basis for formulating the mission statement.

A good vision possesses the following features:

It should be inspiring.
It should foster long term thinking.
It should be original and unique.
It should be competitive.
It should be realistic.

Examples:

 Company Vision Walt Disney Make people happy

 Stokes Eye Clinic Our vision is to take care of your vision .

 Infosys To be a globally respected organization that provides best of
breed business solutions, leveraging technology, delivered by best-in-
class people.
Mission

 Mission refers to the purpose of an organization. Mission states the

business reason for the organization's existence. It relates the
organization to the society.

 The mission of an organization should aim high and at the same time
it must be realistic. It should provide a strategic direction for the
organization.

 “Mission is the fundamental work given by the society to an

organization”. By Koontz & Q’ Ponnell

“The company mission is defined as the fundamental unique purpose that

sets a business apart from other firms of its type & identifies the scope of
its operations in product & market terms”. By Pearce & Robinson In order
to be effective, a mission statement should possess the following
characteristics:

(i) A mission statement should be realistic and achievable. Impossible

statements do not motivate people.

(ii) It should neither be too broad not be too narrow. If it is broad, it will
become meaningless. A narrower mission statement restricts the activities
of organization. The mission statement should be precise.

(iii) A mission statement should not be ambiguous. It must be clear for

action. Highly philosophical statements do not give clarity.

(iv) A mission statement should be distinct. If it is not distinct, it will not

have any impact. Copied mission statements do not create any impression.

(v) It should have societal linkage. Linking the organization to society will
build long term perspective in a better way.

(vi) It should not be static. To cope up with ever changing environment,

dynamic aspects should be considered.
(vii) It should be motivating for members of the organization and of
society. The employees of the organization may enthuse themselves with
mission statement.

(viii) The mission statement should indicate the process of accomplishing

objectives. The clues to achieve the mission will be the motivating factor.

Examples: Company Mission Statement Mayo Clinic To inspire hope and

contribute to health and wellbeing by providing the best care to every
patient through integrated clinical practice, education and research.

The Bank of New York We strive to be the acknowledged global leader

and preferred partner in helping our clients succeed in the world’s rapidly
evolving financial markets.

NIKE Inc. To Bring Inspiration and innovation to every athlete in the

world. There are diverse issues which need to be covered while framing
the mission statement of a company.

The various components of a well framed mission statement are stated as

follows: Product or service Customers Technology Survival,
growth and profitability Company philosophy Public image

1. Mission Concept - It defines the purpose and primary objectives

related to your customer needs and team values.

1.Vision Concept- It communicates both – purpose and values of your

business.

2 Mission -Answer It answers the question: How you will get to where
you want to be?

2 Vision It answers the question: Where you want to be?

3 Mission-The purpose is to inform what the organization does.

3 Vision -The purpose is to inspire people and motivate their
emotional drives to achieve it.
4 A mission statement talks about the present which ultimately leads
to the future.

4 A vision statement talks about the future of the organization.

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statements

Mission and Vision Statements Explained

These statements are the words leaders use to explain an organization's
purpose and direction. When expressed clearly and concisely, they can
motivate your team, or the organization as a whole, with an inspiring
vision of the future.
The two statements do distinctly different jobs:
Purpose
Mission statements define your organization's purpose and its primary
objectives. They are set in the present tense, and explain why you exist as
a business, both to members of your organization and to people outside it.
Mission statements tend to be short, clear and powerful.
Vision statements also define your organization's purpose, but they focus
on its goals and aspirations. These statements are designed to be uplifting
and inspiring. They're also timeless: even if the organization changes its
strategy, the vision will often stay the same.
Application
Usually, people write these statements for an organization, or for an
organizational unit or a team. You can also create statements to define the
goals of long-term projects or initiatives.
Examples
Some examples of Mission Statements are shown below:
• Bristol-Myers Squibb Company (pharmaceuticals) – "To discover,
develop, and deliver innovative medicines that help patients prevail over
serious diseases."
• Walgreens (drugstores) – "Champion the health and well-being of
every community in America."
• Nike (sportswear) – "To bring inspiration and innovation to every
athlete in the world."
• The Dow Chemical Company chemicals) – "Become the most
innovative, customer-centric, inclusive and sustainable Materials Science
Company in the world.
• Amazon online retail) – "Our vision is to be earth's most customer-
centric company."

Some examples of Vision Statements are shown below:

• PepsiCo (retail) – "Be the global leader in convenient foods and
beverages by winning with purpose."
• Amnesty International (nonprofit) – "Our vision is a world in which
every person enjoys all of the human rights enshrined in the Universal
Declaration of Human Rights and other international human rights
instruments."
• Ikea(retail) – "To create a better everyday life for the many people –
for customers, but also for our co-workers and the people who work at our
suppliers."
• The American Society for the Prevention of Cruelty to Animals
(ASPCA) (nonprofit) – "The vision of the ASPCA is that the United States
is a humane community in which all animals are treated with respect and
kindness."

How to Create a Mission Statement

To develop your mission statement, follow the steps below:
Step 1: Develop Your Winning Idea
First, identify your organization's "winning idea," or unique selling
proposition (USP). This is the idea or approach that makes your
organization stand out from its competitors, and it is the reason that
customers come to you and not your competitors.
Step 2: Clarify Your Goal
Next, make a short list of the most important measures of success for your
winning idea.
For instance, if it is to create cutting-edge products in a particular industry,
how will you know when you've accomplished this goal? If your idea is to
provide excellent customer service, what key performance indicator will
let you know that your customers are truly satisfied?
You don't have to include exact figures here, but it's important to have a
general idea of what success looks like, so that you know when you've
achieved it.
Combine your winning idea and success measures into a general, but
measurable goal. Refine the words until you have a concise statement that
expresses your ideas, measures and a desired result.
Keep this statement in the present tense, and make sure it is short,simple,
clear, and free of jargon. Yes, the language needs to be inspiring, but don't
include adjectives just so it "sounds better."
Example 1
Produce store Farm Fresh Produce's winning idea is to "provide farm
freshness." The owner identifies two key measures of the company's
success: freshness and customer satisfaction. She creates the following
mission statement, which combines the winning idea and her measures of
success:
"To be the number one produce store in Main Town by selling the highest
quality, freshest farm produce directly from farm to customer, with high
customer satisfaction."
Example 2
Carl has just become the leader of a new team. The team will focus on one
key project: streamlining the organization's internal databases, so that the
entire system runs smoothly and without problems.
With this in mind, Carl creates a mission statement to guide his team's
understanding of their purpose:
"Our team's goal is to streamline our organization's database management
system within 12 months. We will develop a new system that is easy to use
and reduces the frequency of user errors."

How to Create a Vision Statement

Step 1: Find the Human Value in Your Work
First, identify your organization's mission. Then uncover the real, human
value in that mission. For example, how does your organization improve
people's lives? How do you make the world a better place?

Step 2: Distill Into Values

Next, identify what you, your customers and other stakeholders value the
most about how your organization will achieve this mission. Distill these
into values that your organization has, or should have.
Some examples of values include excellence, integrity, teamwork,
originality, equality, honesty, freedom, service, and strength.
If you have a hard time identifying your organization's values, talk to your
colleagues and team members. What values do they think the organization
stands for, or that it should stand for?
Step 3: Combine Your Mission and Values
Combine your mission and values, and polish your words until you have
an inspiring statement that will energize people, inside and outside your
organization.
It should be broad and timeless, and it should explain why the people in
your organization do what they do.
Example 1
The owner of Farm Fresh Produce examines what she, her customers and
her employees value about her mission.
The four most important values that she identifies are freshness,
healthiness, tastiness, and the "local-ness" of the produce. Here's the vision
statement that she creates and shares with employees, customers and
farmers alike:
"We encourage the families of Main Town to live happier and healthier
lives by providing the freshest, tastiest, and most nutritious local produce
from local farms to their table."
Example 2
Employees looks at the values that are key to achieving his team's goal,
and considers their mission statement. He identifies several important
values, such as challenge, dependability and teamwork. He then creates
this statement that combines his team's mission and values:
"We will challenge our skills and abilities, and create a database system
that's strong, dependable and intuitive, allowing our colleagues to work
quickly and effortlessly."

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formulation