- Communicate with the people of the organization and to those who are in some way connected or concerned with the organization about its very existence in terms of corporate purpose, business scope, and the competitive leadership.
- Cast a framework that would lead to development of interrelationships between firm and stakeholders viz. employees, shareholders, suppliers, customers, and various communities that may be directly or indirectly involved with the firm.
- Define broad objective regarding performance of the firm and its growth in various fields vital to the firm.
Vision is a theme, which gives a focused view of a company. It is a unifying statement and a vital challenge to all different units- of an organization that may be busy pursuing their independent objectives. It consists of a sense of achievable ideals and is a fountain of inspiration for performing the daily activities. It motivates people of an organization to behave in a way which would be congruent with the corporate ethics and values.
Many firms do not have clear vision statements. An indirect method of knowing whether a firm has reached the stage of corporate strategic management is emergence of a vision statement. Vision of a firm cannot be high jacked from a company; however, the vision statement of another firm may definitely inspire a firm. It has to be evolved after a lot of deliberations, brainstorming, and thinking.
It is pertinent that you as an individual working in a firm should become an active participant and collaborator in accomplishing corporate objectives. You must understand and share the vision of the firm because you would have to contribute in transformation of vision into a reality through his or her actions. The basic framework of vision should condition total behaviour of people of an organization. Personal objectives of individuals are very important to them and only to fulfil these objectives people join organizations. Vision of a company when translated into action program must be able to meet personal needs of people. This includes the need of achievement also.
Vision of a firm thus encompasses personal objectives of people, which they try to achieve.
Step 1. Name of the company
Step 2. Practices that have made the company successful
The primary purpose of the strategic management process is to enable companies to achieve strategic competitiveness and earn above-average returns. Research have indicated that companies that engage in strategic management generally out perform those that do not. The attainment of an appropriate match or fit between a company’s environment and its strategy, structure, and processes has positive effects on the company’s performance. Bruce Henderson, founder of the Boston Consulting Group, pointed out that a company cannot afford to follow intuitive strategies once it becomes large, has layers of management, or its environment changes substantially. As the world’s environment becomes increasingly complex and changing, today’s companies, as one way to make the environment more manageable, use strategic management.