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The Business Idea.com |
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For business ideas that work! |
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The vision is the long term view and aspiration of the owner and is a perception of what the firm could achieve. The mission and vision are in interchangeable and this provides the framework for the objectives of the company which in turn should support the mission, these are however expected to change in time.
Companies will have multiple objectives which can be both long and short term, should be SMART and are likely to include: market share, shareholder payments, and social responsibility. These may conflict and priorities will be established and some form of measure to quantify and define the objective.
If the vision of the company is apparently unclear beyond survival, staying independent and relatively small. This could be a factor which holds back progression due to the fear of loss of control. To successfully market itself, the business needs to focus on what's special and different about its products and in turn how to market this effectively. It is apparent that the company has both the resources and experience to become highly competitive within the relevant field but lack the direction and vision to achieve this. |
Objectives indicate the distinctive competencies or strengths whilst providing guidelines for measuring internal performance in the company and are the cornerstone of any management activity.
If the company’s objectives at present is ‘ to remain small and make a profit’ – this is rather vague and requires further expansion, since both terms are relatively ambiguous and non objective. |
Once you have decided upon your business idea, you need to structure your business accordingly to ensure you identify it’s direction and purpose.
The Mission Statement determines the organisations’ fundamental purpose for existence and the way it perceives itself. They are broad in purpose whilst reflecting the views and the philosophy of top management. It should clearly identify the customers, the needs it is satisfying and the key products as well providing employees and other stakeholders with a vision they can believe and want to adopt as their own. An apt mission statement may read “ we provide unrivalled service and superior goods at a competitive price”, since this appears to incorporate the company’s main objectives and vision of quality, price and excellent service for repeat custom. |
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OBJECTIVES |
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Each of these objectives would be of benefit to the company in order to help determine a future strategy and aim towards gaining competitive advantage. |
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Strategic objective or mission |
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Beating competitors through: |
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Launching their new products first with effective pricing strategies and with a clever cost effective advertising campaign for the consumer products |
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A unique characteristic of branding to allow differentiation, through the use of innovative packaging, colourful products and marketing in unique advantageous locations. |
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A superlative in some aspect of performance that is perceived and valued by the customer in order to achieve loyalty, repeat custom and recommendations through word of mouth. |
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Pleasing customers |
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By conformance to all expectations on all product attributes and exceeding expectations on at least one attribute which customers regard as important (i.e. superior quality or after sales service). |
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Satisfying stakeholders |
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By equitable and acceptable performance in all transactions with employees, suppliers, directors, bankers, the local community and the environment. |
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Survival |
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Performance in terms of liquidity and transactions with creditors, Innovative new designs and competitive analysis in order to compete within a highly competitive industry. |