Lecture : 02 - Introduction and Concept - II

Summary

This lecture delves into the intricacies of strategic management, contrasting operational and strategic decisions, and elucidating the differences between long-range and strategic planning. It outlines the comprehensive strategic management model, encompassing vision, mission, and strategic objectives, and discusses the hierarchical levels of strategy within an organization. The lecture also explores various strategy types, emphasizing the significance of clear vision and mission statements for organizational growth, using examples from renowned companies.

Takeaways

• 📈 Strategic decisions are conceptual and often not immediately measurable, unlike operational decisions which are day-to-day and can be effective or ineffective.
• 🔍 The clarity of strategic decisions and the effectiveness of operational decisions determine the past and future success of a strategy.
• 📊 Long-range plans focus on current business with short-term profit and less risk, while strategic plans aim for future growth and sustained profit with higher risk.
• 🛠 The strategic management process involves vision and mission statements, situational analysis, long-term objectives, strategy formulation, implementation, and performance evaluation.
• 🌟 A vision statement outlines what an organization aspires to be in the distant future, serving as a guiding light for long-term goals.
• 📜 A mission statement defines why the company exists, its role in society, and how it contributes to the welfare of the country and its alignment with societal needs.
• 🎯 Strategic objectives operationalize the mission statement, providing specific, measurable goals that align with the broader vision and mission.
• 🏢 The hierarchy of strategy includes corporate-level, business-level, functional, and operational-level strategies, each with varying degrees of conceptualization and measurability.
• 🔑 Corporate-level strategies are high-risk and innovative, requiring significant cooperation from stakeholders, while functional and operational strategies are more routine and measurable.
• 🚀 Examples of strategies include growth strategies like mergers and acquisitions, and retracement strategies such as divestiture and liquidation.
• 🌍 Companies like Tesla, Nike, and Amazon have vision and mission statements that reflect their aspirations for the future and their contributions to society and the world.

Q & A

What is the primary focus of strategic decisions compared to operating decisions?

Strategic decisions are generally conceptual, focused on higher levels, and may be clear or unclear, not always measurable. They are about the long-term direction and growth of the organization. Operating decisions, on the other hand, are day-to-day functional level decisions that can be effective or ineffective and are more immediate and measurable.

How does the clarity and effectiveness of strategic and operating decisions impact an organization's success?

If strategic decisions are clear and operating decisions are effective, the strategy has worked in the past and is likely to succeed in the future. Unclear strategic decisions and ineffective operating decisions indicate past failures and future challenges. Unclear strategic decisions with effective operating decisions may have led to past success but do not guarantee future success, while clear strategic decisions with ineffective operating decisions might have brought short-term success but are doubtful for the future.

What is the difference between a long-range plan and a strategic plan?

A long-range plan focuses on the current or present business, emphasizing annual, short-term profit and is generally less risky. A strategic plan, however, focuses on growth and future profit, which may not be immediately profitable but aims for sustained profit over time. Strategic plans are associated with a higher degree of risk and long-term vision.

What are the key components of a comprehensive strategic management model?

A comprehensive strategic management model includes vision and mission statements, situational analysis (external and internal environmental analysis), development of long-term strategic objectives, formulation of strategy (generating alternatives, evaluating, and selecting), implementation of strategy (allocating resources, structure, leadership skills, and functional policies), and evaluation of performance (monitoring, feedback, and course corrections).

What is the role of vision and mission statements in guiding an organization's strategic plan?

Vision and mission statements are provided by top management and serve as a top-down guide for the organization. They help in determining the direction and purpose of the organization, ensuring that all strategic plans align with the overall aspirations and goals.

How does the strategic decision-making process relate to the mission statement?

The strategic decision-making process starts with determining the mission statement, which is then followed by an external environmental assessment to identify opportunities and threats, and an internal organization analysis to understand strengths and weaknesses. Based on this, long-term objectives are specified, and a strategy is formulated and implemented, with continuous monitoring and feedback for adjustments.

What are the four levels of strategy in an organization?

The four levels of strategy in an organization are corporate level, business level, functional level, and operational level. Corporate level strategy is the responsibility of top management and provides overall directions. Business level strategy is managed by general managers or business unit heads. Functional strategies are managed by functional heads, and operational strategies are the day-to-day work managed by line functions.

What are the characteristics of corporate-level strategies?

Corporate-level strategies are more conceptual, non-measurable, have a longer time horizon, are innovative in nature, and carry a high degree of risk. They also require high cooperation from different stakeholders.

What is the difference between a blue ocean strategy and a red ocean strategy?

A blue ocean strategy involves entering unexplored markets or segments or creating innovative products, aiming to avoid competition. A red ocean strategy, on the other hand, focuses on competing in existing, fiercely competitive markets, where market share and profitability are achieved at the expense of competitors.

What are the essential elements of a mission statement?

A mission statement should explain why the company exists, how it fits into society, how it contributes to societal welfare, what business it is in, and whether this business is compatible with societal needs. It should be precise, terse, unambiguous, and understandable by all concerned.

How do vision, mission, and strategic objectives relate to each other?

The vision statement is at the top, outlining what the organization aspires to be in the distant future. The mission statement explains why the company exists and how it fits into society. Strategic objectives operationalize the mission statement, making them more specific and focused on shorter-term goals.

Outlines

00:00

📈 Introduction to Strategic Decisions and Management

This paragraph introduces the lecture's focus on strategic decisions and management. It discusses the dimensions of strategic decisions, types of strategies, levels of strategy, and the strategic management process. The comparison between operating and strategic decisions is highlighted, emphasizing the conceptual nature and potential lack of measurability in strategic decisions versus the day-to-day, functional nature of operating decisions. The success of a strategy is linked to the clarity of strategic decisions and the effectiveness of operating decisions. The paragraph also differentiates between long-range plans, which focus on current business and short-term profits with lower risk, and strategic plans, which aim for future growth and sustained profits with higher risk.

05:03

📚 Strategic Management Model and Decision-Making Process

The second paragraph delves into the comprehensive strategic management model, starting with the vision and mission statement provided by top management. It outlines the process of strategic planning, which includes situational analysis, development of long-term strategic objectives, formulation of strategy, and implementation. The importance of resources, organizational structure, leadership skills, and functional policies in strategy implementation is discussed. The paragraph also covers the evaluation of strategy performance, monitoring, and feedback for course corrections, highlighting the cyclical nature of the strategic management process.

10:08

🏢 Hierarchy of Strategy Levels in an Organization

This paragraph explores the hierarchy of strategy levels within an organization, detailing the corporate, business, functional, and operational levels. Corporate strategy, driven by top management, provides overall direction and is long-term and high-risk. Business-level strategy, managed by general managers, focuses on competitive positioning and is a mix of conceptual and operational elements. Functional strategies, overseen by functional heads, are purely operational and measurable, with annual targets and incentives. Operational strategies are the day-to-day work, managed at a regional or district level, and form the foundation for higher-level strategies.

15:11

🌐 Types of Strategies and Their Characteristics

The fourth paragraph discusses various types of strategies, including stability, growth, retracement, generic, dependency reduction, blue ocean, and red ocean strategies. It explains that these strategies are not exhaustive but indicative, and will be further discussed in future modules. The paragraph also emphasizes the importance of understanding the different types of strategies and their applications in various business scenarios.

20:21

🌟 Vision, Mission, and Strategic Objectives

This paragraph focuses on the concepts of vision, mission, and strategic objectives. It defines vision as an organization's aspiration for the distant future and mission as a statement explaining why the company exists and its role in society. Strategic objectives are described as the operationalization of the mission statement. The relationship between these elements is outlined, with vision at the top, followed by mission and strategic objectives. Examples of vision and mission statements from major oil companies, Johnson and Johnson, Tesla, and Nike are provided to illustrate these concepts.

25:27

🚀 Examples of Vision and Mission Statements from Reputed Companies

The sixth paragraph provides examples of vision and mission statements from various reputed companies across different sectors. It includes Microsoft, Amazon, and others, highlighting how these statements reflect the companies' aspirations, business focus, and societal contributions. The importance of simplicity, precision, and clarity in vision and mission statements is reiterated, emphasizing their role in guiding organizational growth and strategy.

30:34

📚 Summary of Lecture on Strategic Planning and Management

The final paragraph summarizes the lecture, covering the strategic planning process, the stimulus for strategy, and the triggering points for change in strategy. It also reviews the characteristics of different levels of strategies, such as corporate, business, functional, and operational levels. The importance of vision, mission, and strategic objectives for organizational growth is highlighted, and reference books for further study are recommended.

Keywords

💡Strategic Decisions

Strategic decisions are long-term, broad choices made by an organization that shape its future direction and impact its overall goals. In the video, it is emphasized that these decisions are generally conceptual, potentially unclear, and not always measurable, contrasting with operational decisions which are more day-to-day and functional. The clarity and effectiveness of strategic decisions are crucial for the success of an organization's strategy, both in the past and in the future.

💡Operating Decisions

Operating decisions refer to the day-to-day, functional-level choices that organizations make to manage their routine activities. These decisions can be effective or ineffective, and their impact is more immediate compared to strategic decisions. The script highlights that the effectiveness of operating decisions, in conjunction with the clarity of strategic decisions, determines the success of an organization's strategy.

💡Long-Range Plan

A long-range plan focuses on the current or present business, emphasizing short-term profits and generally involving less risk. The script differentiates a long-range plan from a strategic plan, noting that while a long-range plan is more about maintaining the status quo with an annual focus, a strategic plan is oriented towards future growth and may involve higher risk for potentially greater rewards.

💡Strategic Plan

A strategic plan is a comprehensive approach to achieving an organization's long-term goals. It involves growth and future profitability, which may not be immediately realized but is expected to yield sustained benefits over time. The script explains that strategic plans are associated with a high degree of risk and require a clear vision, mission, and strategic objectives to guide their development and implementation.

💡Situational Analysis

Situational analysis is a critical component of strategic planning, involving the examination of both the external and internal environments of an organization. The script mentions that this analysis helps in identifying opportunities and threats in the external environment and strengths and weaknesses within the organization, which are essential for formulating effective long-term strategic objectives.

💡Strategy Formulation

Strategy formulation is the process of developing a plan to achieve an organization's strategic objectives. It involves generating alternatives, evaluating these options, and selecting the most appropriate strategy. The script illustrates that this process is a key step in the strategic management model, following situational analysis and leading to the implementation of the chosen strategy.

💡Implementation

Implementation in the context of strategic management refers to the execution of the formulated strategy. The script explains that this stage requires resources, an appropriate organizational structure, leadership skills, and the development of functional policies. Effective implementation is crucial for the success of any strategic plan.

💡Evaluation

Evaluation is the process of assessing the performance of an organization's strategy. It involves monitoring, tracking, and providing feedback for course corrections. The script highlights that evaluation is a continuous process that helps in determining the effectiveness of the strategy and making necessary adjustments to ensure its success.

💡Strategy Hierarchy

The strategy hierarchy refers to the different levels at which strategies are developed and implemented within an organization. The script outlines four levels: corporate, business, functional, and operational. Each level has its own responsibilities and characteristics, with corporate strategies being the most conceptual and operational strategies being the most measurable and action-oriented.

💡Vision Statement

A vision statement is a declaration of what an organization aspires to be in the distant future. It is a reflection of the organization's dreams and long-term goals. The script provides examples of vision statements from various companies, emphasizing their role in guiding the organization's strategic direction and inspiring stakeholders.

💡Mission Statement

A mission statement explains why an organization exists, how it fits into society, and what business it is in. It should be precise, clear, and understandable by all. The script discusses the importance of a mission statement in defining the organization's purpose and its role in society, providing examples from companies like Johnson and Johnson and Tesla.

💡Strategic Objectives

Strategic objectives are specific, measurable goals that operationalize the mission statement of an organization. They are designed to guide the organization's actions towards achieving its vision. The script illustrates the relationship between vision, mission, and strategic objectives, showing how they form a hierarchy of purpose and action.

Highlights

Strategic decisions are generally conceptual and may be clear or unclear, measurable or not, compared to operating decisions which are day-to-day functional level decisions that may be effective or ineffective.

Clear strategic decisions and effective operating decisions indicate past success and预示 future success.

Unclear strategic decisions and ineffective operating decisions mean the plan has not succeeded in the past and is unlikely to succeed in the future.

If strategic decisions are unclear but operating decisions are effective, past success does not ensure future success, making it doubtful.

Clear strategic decisions with ineffective operating decisions may have led to short-term success in the past, but future success is doubtful.

Long-range plans focus on current business and short-term profits with lower risk, while strategic plans focus on future growth and sustained profits with higher risk.

The comprehensive strategic management model includes vision and mission statements, situational analysis, long-term objectives, strategy formulation, implementation, and performance evaluation.

Vision statements guide how an organization proceeds to make strategic plans, coming from top management.

Situational analysis involves external and internal environmental analysis to identify opportunities, threats, strengths, and weaknesses.

Strategy formulation includes generating alternatives, evaluating them, and selecting an appropriate strategy.

Implementation of strategy requires allocating resources, having an appropriate organizational structure, leadership skills, and developing functional policies.

Performance evaluation after strategy implementation involves tracking, monitoring, and getting feedback for course corrections.

The strategic decision-making process involves determining mission, conducting environmental assessments, specifying long-term objectives, formulating and implementing strategies, and taking feedback for adjustments.

There are four levels in the strategy hierarchy: corporate level, business level, functional level, and operating level, each with different responsibilities and characteristics.

Corporate-level strategies are conceptual, long-term, innovative, and high-risk, while business-level strategies are a mix of conceptual and operational with moderate risk and measurability.

Functional-level strategies are purely operational, measurable, and have lower risk, profitability, and cost compared to corporate and business levels.

Different types of strategies include stability, growth (e.g., mergers, joint ventures, expansion), retracement (e.g., turnaround, divestiture), generic strategies, dependency reduction, blue ocean, and red ocean strategies.

A vision statement describes what an organization aspires to be in the distant future, while a mission statement explains why the company exists, how it fits into society, and what business it is in.

Strategic objectives operationalize the mission statement, becoming more specific and shorter-term as you go down from the vision and mission.

Examples of vision and mission statements from major companies like a major oil company, Johnson and Johnson, Tesla, Nike, Microsoft, and Amazon illustrate the integration of vision, mission, and strategic objectives.

Vision and mission statements should be simple, precise, unambiguous, and understandable by all, as demonstrated by the examples provided.

Transcripts

 Welcome to  

lecture number 2 of Introduction and  Concepts. In the last class, we talked about  

the genesis of the strategy and the  evolution of strategic management.  

In this lecture, we will start with the  dimensions of strategic decisions and different  

types of strategies, the levels of strategy,  strategic management process, strategic vision,  

mission and strategic objectives. All these  things we will be covering in this lecture.  

So, we will now be talking about, what is the  comparison between the operating and the strategic  

decisions? What is the difference between  operations decisions and strategic decisions?  

If you see this diagram, you  will see that strategic decisions  

are generally conceptual. Since it is at the  higher levels, it may be clear or unclear, and not  

always measurable. Whereas the operating decisions  are said to be the day-to-day functional level  

decisions and may be effective or ineffective. Now, if your strategic decisions are clear,  

and operating decisions are effective, it means  that your strategy has worked in the past and  

has given you the results and even  in the future, it will succeed.  

So, now, if your strategic decisions are unclear,  and operating decisions are also ineffective, it  

means that your plan has not succeeded in the past  and it will not succeed in the future either.  

Then, if your strategic decisions are  unclear, but operating decisions are  

effective, it means that your plan might have  succeeded in the past, but that does not ensure  

that it will be succeeding in the future.  It is doubtful that it will succeed.  

Now, if your strategic decisions are clear, but  operating decisions are ineffective, it means you  

might have tasted success for a short period in  the past, but success in the future is doubtful.  

So, these give you comparisons of strategic  decisions and your operating decisions.  

Now, we will be talking about what is  the difference between a long-range plan  

and a strategic plan. In the long-range plan,  your focus is on the current or the present  

business, your focus is mostly on the annual,  short-term profit and is generally less risky.  

And under the strategic plan, the focus is  on growth i.e., future profit. It may not  

be profitable today, but it will give you profit  after some time and it will be a sustained profit.  

Naturally, the strategic plan is associated  with a high degree of long-range plan. So,  

these are the difference you will find between  a long-range plan and a strategic plan.  

Now, this diagram shows you a  comprehensive strategic management model.  

This is the strategic planning one wants to do.  This is the process one has to follow, first,  

there is a vision and mission statement, this is  top-down and given by the apex body - it comes  

from the top management. Vision and mission  statement guide the organization - how you  

proceed to make your strategic plan.  First, you do a situational analysis.  

That is, you do the external environment analysis  and internal environmental analysis; we will  

talk about this in the subsequent modules. Then based on these you develop your long-term  

strategic objectives for the organization,  then you formulate your strategy. Formulating  

a strategy are of few steps. You generate many  strategic alternatives, then evaluate those  

alternatives and choose an appropriate strategy  - that is, selection of strategy; these two boxes  

are the formulation. Then after you formulate,  what you do to implement the strategy? Under the  

implementation of strategy, what is required?  Inputs are required or your resources.  

So, after you allocate resources, you need  a conducive structure i.e., an appropriate  

structure of the organization to implement that  strategy. So, the structure is also important,  

then you require leadership skills because these  strategy implementations also require handling  

different groups, handling different people, and  functional policies have to be developed.  

So, these are the implementation stages. After  implementing you evaluate your performance,  

how the strategy is working, and evaluate the  performance of the organizations, KPMs and  

all. You track, monitor and get feedback for the  course corrections. It goes this way of having  

a strategic planning process; this is called a  comprehensive strategic management model. So,  

we will cover each of these boxes in subsequent  modules. So, this will be very useful.  

So, this strategic decision-making process is  similar to the determination of the mission  

i.e., top-down, based on that, you do  an external environmental assessment  

to find out the opportunities and threats, and  an internal organization analysis to know your  

strength and weakness. This is the situational  analysis based on which you specify your long-term  

objectives, and based on this long-term  objective you formulate a strategy.  

After formulating a strategy, you  implement your strategic plan.  

Then monitor, evaluate and take feedback for  adjustment or revision of mission statement,  

revision of specific objectives, formulation of  strategy and implementation of the strategy. These  

are the strategic decision-making process. Next, we will be talking about the various  

levels of strategy. This is called the hierarchy  of strategy. Under this strategy hierarchy,  

there are four levels; one is the corporate  level, which is the corporate strategy.  

This is responsibility of the top management,  i.e., the CEO and board of directors.  

So, what does it do, it gives overall directions  

to the organization i.e., how the organization  will move, and it is generally long-term.  

So, then, the next level is the business-level  strategy. Business level strategy is the  

responsibility of business units or products  or services. It is the general managers or the  

business unit heads who carry out these  business-level strategies. This is done  

for keeping your organization in a particular  competitive position. You aim for business to get  

a particular competitive positioning. It  is being done through business strategy.  

There are functional strategies like (each  group) manufacturing, marketing strategy,  

finance strategy, human resource strategy, and  supply chain management strategy, all these are  

the responsibilities of the functional heads.  So, these are the functional strategies.  

Then at the lowest level, it is the operating  strategy. Like under the functions they may be  

distributed over the region or over the districts,  and there may be a different department within the  

functional strategies. So, these are the various  levels of strategy in an organization.  

To discuss more on this, we will be showing  what we found at the corporate level, business  

level, and functional level. Under the functional  level, there is the operational level, which is  

the day-to-day work, line functions and all. So, here at the corporate level, the strategies  

are more conceptual, non-measurable, and is  having a longer time horizon. Again, it is more  

innovative in nature and the degree of risk  is very high. Profitability and cost for  

corporate-level strategies are also very high. So, the cooperation required from the different  

stakeholders is also very high for the  corporate-level strategy. Under the Business level  

strategy, some part is conceptual, but others  are the business part, which is operational.  

So, it is a mixture of conceptual and operational.  These are moderately measurable and moderately  

non-measurable. Some parts that are conceptual  are non-measurable, but the operational parts  

are measurable and it happens periodically. The  business level strategy basically tries to keep  

your organization’s product or business in a  competitive position. It is periodic in nature  

and is action-oriented. Again, the risk, profit  and cost are moderate between the corporate  

level and functional level. Then the functional level strategies  

are purely operational and are measurable. It is  measured annually, i.e., it has an annual plan,  

annual target, annual incentives and all these  are based on this functional level and operational  

level strategy. This is action-oriented,  and the risk, profitability and cost  

are lower than the business level and corporate  level. The cooperation required is also  

lower than the corporate level and business level.  This functional level or operations level is the  

basic building block for the business  level and corporate level strategy. So,  

these are the characteristics of  different levels of planning.  

Next, we will be discussing on what are  the different types of strategy. So,  

these are just a few indicative ones, we will  show. There may be a stability strategy; we will  

discuss it in future lectures. There may be growth  strategies, what are growth strategies? It may be  

merger and acquisition, joint ventures, growth  through expansion like Greenfield expansion or  

brownfield expansion, growth through outsourcing,  franchising or vertical integration.  

Then there may be a retracement strategy  i.e., reducing your activity. It may be  

turnaround strategies, divestiture and liquidation  strategies. So, there is something called  

generic strategy, which are of five types. Then there may be a dependency reduction strategy.  

Suppose you have only one (single) vendor, who  supplies a very strategic material for your  

organization, and depending on one (unreliable)  vendor is very risky for your organization,  

for this dependency reduction strategy is  adopted. Then there may be a blue ocean  

strategy, a red ocean strategy. The Blue Ocean  strategy is you go to an unexplored market  

or the unexplored segment or you create a  product which is innovative. So, you have your  

new market, new segment, and new product. The red ocean strategy is that you are in the  

fiercely competitive, existing market and your  market share and profitability are at the cost of  

the competitors. So, all these are different types  of strategies, these are not exhaustive - but  

indicative. Many of these strategies we will  be discussing in the future modules.  

Now, coming to an important topic, you have heard  about the mission, vision, strategic objectives  

of an organization. So, what is a vision? What do  you understand by vision of an organization?  

A vision is, what an organization or a  company aspires to be in the distant future,  

what an organization wants to be in the  distant future, what is its dream, and what  

it aspires for. These are the vision  of the organization (statement).  

Then comes the mission statement, what is the  mission statement? And what are its purposes and  

features? A mission statement is one which tells  you why the company exist, how it fits in society,  

how it contributes to society, how it contributes  to the country's welfare, what business is it in,  

and is this business compatible with the societal  needs or not. A mission statement must address  

all these issues and a mission statement  usually should be very precise, very terse, and  

unambiguous and should be distinct. The mission  statement should be very simple and understandable  

by all concerned (persons). These are some basic  needs for developing a mission statement.  

Then comes, what is a strategic objective?  The strategic objective is to operationalize  

the mission statement. So, if we draw,  the relationships come out like this, the  

vision statement is at the top followed  by the mission statement. Vision is  

what the organization aspires for in  the distant future and the mission is,  

why does the company exist? How does it fit  into society? What business is it in?  

Strategic objectives are for operationalizing  the mission statement. So, if you see in the top,  

it is more general and as you go down strategic  objectives and all will be more specific.  

Similarly, the time horizon - it is a long term,  as you come down - it is of shorter term. So,  

these are the relationships between the  vision, mission and strategic objectives.  

Now, I will show you vision, mission  statement of a major oil company  

just to give you an idea (illustration). You  can just see - you can go through the vision  

and mission statement of that organization. Vision statement: to be a world-class oil and gas  

company integrated into the energy business  and dominant Indian leadership. You can see  

it is a world-class integrated energy business,  the dominant Indian leadership. This is how you  

become a world-class company these are given in  your mission statement, dedicated to excellence by  

leveraging competitive advantage in R&D  and technology with involved people,  

imbibe high standards of business ethics  and organizational values. So, these are the  

ways how to become world-class. In order to become integrated into the energy  

business; focus on domestic and international  oil and gas E&P business (exploration and  

production business) opportunities, then how do  you become the dominant Indian leaderships? You  

retain a dominant position in the Indian petroleum  sector and enhance India’s energy availability.  

So, you can see - this is just an illustrative  one, you can go through many large and reputed  

companies’ vision and mission statements,  and it will be much clearer to you.  

Further to the vision and mission statements that  we have seen in the last slide, that was about a  

major oil and gas company. Now, we will show you  some more vision and mission statements of some  

reputed companies in diversified fields of  different sectors. These will give you a broad  

perspective of this vision and mission statement.  See this is the vision and mission statement of  

Johnson and Johnson. The vision of Johnson  and Johnson is to help people see better,  

connect better and live better. This is a very simple and very powerful one.  

It connects with helping people with a  better life and all and is a very broad  

vision. Then similarly, the mission is to bring  science and sense of sight to life, through World  

Class innovations and customer experience. So, it  clearly says what business they are in and what  

they want to be. Its mission is they want to have  - world-class innovations and customer experience.  

I will talk about it further a little later. This  is a pharmaceutical and health care industry.  

So, let us see another industry. Tesla as we  know is an electrical car vehicle and they are  

coming in a big way. Just see their vision  is to accelerate the world's transition to  

sustainable energy. It is a very powerful vision  that they are transitioning to, because they are  

now global leaders as they are now going from IC  engines to electric vehicles. Its mission is to  

create the most compelling Car Company of  the 21st century by driving the world's  

transition to the electric vehicle. So, it shows what business they are in  

and its vision identifies them as what they want  to be in the future, and also what purpose they  

will be serving for the company and to the world.  So, these are embedded in the mission statement.  

Anyway, we will talk about some  other visions and missions,  

then we will be talking further on this. This is the vision and mission statement of  

Nike. The vision statement is to bring inspiration  and innovation to every athlete in the world. They  

want to be the inspiration and bring  innovation to every athlete in the world.  

And they have defined athletes, the  athlete is not very confined to those  

who are physically strong and are involved  in sport. They defined an athlete as anyone  

who has a body. So, they have enlarged  the market and the environment.  

So, the athlete is for their terms anyone who  has a body, they will be requiring their product.  

So, this is a powerful vision. And the mission  is to create groundbreaking sports innovation,  

make our products sustainably, build a creative  and diverse global team and make a positive impact  

on the communities where we live and work. So, it says, how does it fit in the global  

community, not only in one country's community  and all. These are the very essence of a mission  

statement. The mission statement says how does  it fit, why the company exist, and how it fits in  

society. So, that way, this satisfies most of the  elements of a mission and vision statement.  

Now, let us see some other -  two from another field. Say,  

Microsoft's vision is to help people and  businesses throughout the world realizing  

their full potential. It is a very powerful vision  like throughout the world they are the global  

leaders. They are realizing the potential of  humanity like the entire citizens of this globe.  

So, they want to realize their full potential  which is nothing but their vision.  

The mission is to empower every person and every  organization on the planet to achieve more. So,  

they are integrating it with every people in the  world, not only a country, every organization  

on the globe, on the planet, to achieve more. They  are enhancing the entire system, entire global  

industries, and global people. So, these are seen  naturally as they will fit in the society and  

what business they are in are all embedded in  this powerful vision and mission statement.  

Now, you see Amazon, another area i.e.,  e-commerce. Its vision is to be Earth's most  

customer-centric company. So, it says  they are a customer-centric company,  

where customers can find and discover  anything they might want to buy online.  

They have expanded their operations,  they expanded what they want to aspire  

to be, and this is their aspiration. Then their  mission is that “we strive to offer our customers  

the lowest possible prices, the best available  selection and the utmost convenience.”  

So, what purpose do they serve, is one of  the ingredients of a mission statement. What  

purpose does a company serve for the society are  embedded in it. All these companies like Johnson,  

Nike, Microsoft, Amazon and Tesla,  incorporate all the textbook concepts  

of how should the vision and mission  statements be integrated.  

Moreover, one more thing, vision and mission  statement as I told you in the last lecture,  

should be simple, precise, unambiguous, and  understood by all. As you see, it is so simple,  

understood by everyone, very precise. All these  you see also satisfies the characteristics of the  

vision and mission statement. So, these are  

some of the further examples of visions and  missions’ statement. So, you can get the idea of  

how to develop a vision and mission statement  and what are the attributes or characteristics  

a vision and mission statement should have. So, to summarize today's lecture, in this  

chapter, we have explained how to make a strategic  planning process, how to develop a strategic plan,  

what are the stimulus for strategy, what are the  triggering points for change in strategy in an  

organization. Also, the various kinds  of strategies that are available  

in the strategic management and the  characteristics of different level  

of strategies such as corporate level strategy,  business level, functional level and operational  

level strategies. We have also discussed the  importance of vision, mission and strategic  

objectives of an organization for its growth. So, thank you very much. Before that, I will just  

show you the references. These are the reference  books you can follow. And these are the best  

books in the world. So, it will help you in your  growth of knowledge. Thank you very much.