CHAPTER IINTRODUCTION1.1 Background

There are various issues to consider in making an organizational strategic plan. Strategic plans often mean a change in organizational structure or a move toward change. Change can be a difficult process and sometimes requires time. It is important to get employees on board with the decision making process. This can be articulated through the mission and vision statement of the organization. Articulating and repeating the positives of the move toward change in the organization will help employees stay engaged and motivated in the process.Change is an essential component of strategic planning. This involves moving the organization or program forward to create or change something. Some plans are created out of the need for the organization to move in a certain direction, and other plans develop organically. Mission and vision statements will be important to help communicate the goals of the plan to employees and the public.A vision statement sets out a company's long-term goals and aspirations clearly and concisely. A vision statement is intended to inspire and motivate the company's workforce by providing a picture of where the organization is heading. It also provides a reality check for managers, who can compare their strategic objectives and operational plans to the vision statement. If a planned course of action doesn't move the company toward its vision, it may need to be revised.A mission statement defines the business sector in which a company operates and sets out its key purpose. It summarizes what the company does and why. It also sets out how the company conducts its business and identifies key stakeholders, such as shareholders, customers and employees. A mission statement helps employees understand where their contribution fits into the company's objectives. It also helps other stakeholders decide whether they want to do business with the organization.Strategic planning will likely have its successes and failures. Leaders should celebrate the little successes toward meeting objectives, which are part of the mission and vision statement. The mission statement will help measure whether the strategic plan aligns with the overall goals of the agency. The vision statement helps to provide inspiration to employees. Employees who feel invested in the organizational change are more likely to stay motivated and have higher levels of productivity.Well-written vision and mission statements ensure that each element of the strategic management process is aligned to the company's long-term goals. Managers use clear and concise vision and mission statements to communicate their aspirations to stakeholders. Employees understand where to focus their efforts if they align their daily work with the vision and mission. Clear vision and mission statements allow customers, suppliers and shareholders to choose whether or not they want to do business with the company.

1.2 Purpose of the paper1. To know the formulating process of vision, mission and objectives in the company2. To know the relationship between vision, mission and objectives in the company

CHAPTER IIDiscussion2.1 Formulating process of Vision and MissionThere are three main steps in the formulation of the company strategy. First, develop a strategic vision and mission. Second, goal setting, and the third final step, developing strategies to achieve those goals. The following explanation of the vision and mission.Vision Vision is mental perception of the kind of environment an individual, or an organization, aspires to create within a broad time horizon and the underlying conditions for the actualization of this perception (description of something in the future).Vision is an established business purpose; also the direction in which the business was founded and describes the direction of the goal at a time when that will come. Vision is a permanent statement to communicate the existence and nature of the organization based on its purpose. Vision is a direction map business goal is to be developed. Vision is the inclusive nature of the business horizon and see the illustrious (future - futuristic), and is still relatively abstract. For example: CHEVRON - The symbol of partnership VOLVO - Excellence NOKIA -Connecting people PHILIPS - Let's a make things better STARMILD - Make your life brighter MM-UGM - Quality is our tradition

The three elements of a strategic vision1. Coming up with a mission statement that defines what business the company is presently in and conveys the essence of who we are, what we do, and where we are now2. Using the mission statement as a basis for deciding on a long term course, making a choices about where we are going and charting a strategic path for the company to pursue3. Communicating the strategic vision in clear, exciting terms that arouse organization wide commitment.Characteristic of good visiona. Future Focused: An effective vision answers the question what will our business look like in 5 to 10 years time? It describes the organizations desired future. A vision makes clear the organizations direction, providing a clear picture of what the business will look like in 5 10 years time. b. Directional: An effective vision provides direction and makes clear where the organization is going.c. Clear: An effective vision provides guidance for decision making and independent action. This requires the vision to be clearly articulated and easily understood.d. Relevant: An effective vision is grounded in and an extension of the organizations past. Visions dont exists in a vacuum.e. Purpose-Driven: An effective vision provides a larger sense of purpose for the organization and people.f. Values Based: An effective vision connects people to the oganizations core values. Values are the beliefs or ideals that the organization shares about whats good or bad.g. Challenging: An effective vision challenges us, its an invitation to greatness. A vision is a goal that should challenge us, stretch us and set a high standard for the organization. h. Unique: An effective vision reflects whats unique about the organization, it recognizes what makes it different. A vision is unique when it declares what makes the organization stand out and why it matters.i. Vivid: An effective vision provides a vivid mental image of what the organization will be like in the future.j. Inspiring: An effective vision engages and inspires people to commit to a cause. Vision appeals to the hearts and minds of people. Vision is inspiring when it captures the hearts of people

The Benefits of Creating a VisionA vision is an idealized picture of the future of the business or organization. This can bring many benefits to you.1. Visioning is the first step in strategic planning. 2. A vision shared by all the members of your business can help all members set goals to advance the organization. 3. A vision can also motivate and empower employees. 4. Without a strong vision, strategic plans cannot be properly delineated since there is no guiding principle or ideal to plan.5. A vision brings meaning to peoples work, mobilizes them to action, and helps them decide what to do and what not to do in the course of their work.6. An effective vision strikes a chord in people, motivates them by tapping their competitive drive, arouses desire for greatness or interest in doing the right thing, tantalizes them with personal gain, or appeals to their need to make a difference in the world.7. A vision is an idealized picture of the future organization and it expresses the organization's reason for existence. 8. Visions grab people and then bring them into the fold. 9. When a leader's vision is effective and strong, employees and stakeholders get caught up in what they are doing, absorb the vision, and commit themselves to the goals and the values of the leaders.Mission The mission is a statement of the owner for the management / business management business that made something useful, an expectation about the scope of the business, and what to do business as well as for anyone now. The mission is essential purpose of the organization, concerning particularly why it is in existence, the nature of the business it is in, and the customers it seeks to serve and satisfy.The mission is a duty imposed on management by the owner to perform certain activities to make the business successful in the operation, such as becoming a leading business, a business that serves its customers well, the most successful businesses in the sector. A mission statement is an enduring statement of purpose that distinguishes one business from other similar firms. A mission statement identifies the scope of a firms operations in product and market terms.The mission is not to make a profit.Sometimes companies couch their business mission in terms of making profit. This is misguided profit is more correctly an objective and a result of what the company does. The desire to make a profit says nothing about the business arena in which profits are to be sought. Missions based on making a profit do not allow us to distinguish one type of profit seeking enterprise from another.One of the roles of a mission statement is to give the organization its own special identity, business emphasis, and path for development, one that typically sets it apart from other similarly situated companies.Incorporating what, who, and how into the mission statementA companys business is defined by what needs it is trying to satisfy by which customer groups it is targeting and by the technologies and competencies it uses and the activities it performs.A strategically revealing mission statement incorporates three elements:1. Customer needs or what is being satisfied2. Customer groups or who is being satisfied3. The companys activities, technologies, and competencies or how the enterprise goes about creating and delivering value to customer and satisfying their needs.Technology, competencies and activities are important because they indicate how much of the industrys total production distribution chain its operations will span. For instance, the business of a fully integrated firm extends across the entire range of industry activities that must be performed to get a product or service into the hands of end users.A broad or narrow business definition and mission?Broad definitionNarrow definition

Furniture business Telecommunications business Beverage business Global mail delivery business Travel and tourism business Wrought iron lawn furniture business Long distance telephone service business Soft drink business Overnight package delivery business Caribbean cruise ship business

Mission statements for functional departementsTheres also a place for mission statements for key function and departements within a business R&D, marketing, finance, human resources, customer service, information system. Every departement can help focus the efforts of its personnel by developing a mission statement that sets forth its principal role and activities, the direction it is headed and its contribution to the overall company mission. Functional and departemental managers who think through and debate with subordinates and higher ups what their unit needs to focus on and do have a clearer view of how to lead the unit. Three examples from actual companies indicate how a functional mission statement puts the spotlight on a units organizational role and scope: The mission of the human resources departement is to contribute to organizational success by developing effective leaders, creating high performance teams and maximizing the potential of individuals. The mission of the corporate claims departement is to minimize the overall cost of liability, workers compensation, and property damage claims through competitive cost containment technique and loss prevention and control programs. The mission of corporate security is to provide services for the protection of corporate personnel and assets through preventive measures and investigations.Characteristic of good mission statementa. Make it as succinct as possible. A mission statement should be as short and snappy as possible, preferably brief enough to be printed on the back of a business card. The detail which underpins it should be mapped out elsewhere (see Vision and Values)b. Make it memorable. Obviously partially linked to the above, but try to make it something that people will be able to remember the key elements of, even if not the exact wordingc. Make it unique to you. Its easy to fall into the motherhood and apple pie trap with generic statements that could equally apply to any institution. Focus on what it is that you strive to do differently: how you achieve excellence, why you value your staff or what it is about the quality of the student experience that sets you apart from the rest.d. Make it realistic. Remember, your mission statement is supposed to be a summary of why you exist and what you do. It is a description of the present, not a vision for the future. If it bears little or no resemblance to the organisation that your staff know it will achieve little.e. Make sure its current. Though it is not something which should be changed regularly, neither should it be set in stone. Your institutions priorities and focus may change significantly over time, perhaps in response to a change of direction set by a new Vice Chancellor or Principal, or major changes in government policy. On such occasions the question should at least be asked: does our current mission statement still stand?

ObjectivesSetting goals and objectives for your small business is important to ensure its growth and sustainability. Defining goals and putting together a comprehensive, employee-focused management strategy represents an important part of strategic management. This means analyzing the major initiatives that your company takes and putting translating initiatives into reasonable and workable goals.

Objectives represent a managerial commitment to achieve specified results in a specified period, of time. They clearly spell out the quantity and quality of performance to be achieved, the time period, the process and the person who is responsible for the achievement of the objective.Management by ObjectivesIn 1954, leadership and management expert Peter Drucker introduced the concept of "Management by Objectives," sometimes also called "Management by Results." MBO is a cooperative, business-wide strategy for setting goals and implementing organizational change. Importantly, MBO compares progress toward meeting goals with the actual performance of the business and its employees. The idea is that when employees are involved in helping to set their own goals and those of the business, they'll be more likely to meet the goals because a sense of buy-in gets created.Short-Term ObjectivesShort-term objectives represent the goals an organization sets that are centered on tasks that can be achieved within the next six months or, at the outset, within one year. An example of a short-term goal might be to increase sales by 10 percent. This is an easily measurable goal and employees can be held directly accountable for ensuring that it is met.Long-Term ObjectivesLong-term objectives define any goal that has a time frame exceeding one year. Business goals that are normally considered long term include developing a new product, growing annual revenue and developing a comprehensive marketing and public relations strategy. Importantly, long-term goals must not go on forever. While they take more time than short-term objectives, long-term goals must be realistic and time bound.Need for Establishing ObjectivesThe following points specifically emphasize the need for establishing objectives: To provide a yardstick to measure performance of a department or SBU or organization. To serve as a motivating force. All people work to achieve the objectives. To help the organization to pursue its vision and mission. Long-term perspective is translated in short-term goals. To define the relationship of organization with internal and external environment. To provide a basis for decision-making.All decisions taken at all levels of management are oriented towards accomplishment of objectives.Levels of Objective FormulationThe objectives are set at the three levels of strategy development in an enterprise, i.e.;1. Corporate level2. Business unit level3. Functional or departmental levelCorporate objectives are those that relate to the business as a whole. The top management of the business usually sets them and they provide the focus for setting more detailed objectives for the main functional activities of the business. They tend to focus on the desired performance and results of the business. It is important that corporate objectives cover a range of key areas where the business wants to achieve results rather than focusing on a single objective.Peter Drucker has suggested that corporate objectives should cover eight key areas:Area ExamplesMarket standing Market share, customer satisfaction, product rangeAreaExample

Market standingMarket share, customer satisfaction, product range

InnovationNew products, better processes, use to technology

ProductivityOptimum use of resources, focus on core activities

Physical & financial resourcesFactories, business locations, finance, supplies

ProfitabilityLevel of profit, rates of return on investment

ManagementManagement structure; promotion & development

EmployeesOrganizational structure; employee relations

Public responsibilityCompliance with laws; social and ethical behavior

Characteristics of ObjectivesThe following are the characteristics of corporate objectives: They form a hierarchy. It begins with broad statement of vision and mission and ends with key specific goals. These objectives are made achievable at the lower level. It is impossible to identify even one major objective that could cover all possible relationships and needs. Organizational problems and relationship cover a multiplicity of variables and cannot be integrated into one objective. They may be economic objectives, social objectives, political objectives etc. Hence, multiplicity of objectives forces the strategists to balance those diverse interests. A specific time horizon must be laid for effective objectives. This timeframe helps the strategists to fix targets. Objectives must be within reach and is also challenging for the employees. If objectives set are beyond the reach of managers, they will adopt a defeatist attitude. Attainable objectives act as a motivator in the organization. Objectives should be understandable once communicated. Clarity and simplicity should characterize the language of formulation.Process of Setting ObjectivesGlueck identifies four factors that should be considered for objective setting. These factors are:Environmental forces, both internal and external, may influence the interests of various stakeholders. Further, these forces are dynamic by nature. Hence, objective setting must consider their influence on its process. As objectives should be realistic, the efforts be made to set the objectives in such a way so that objectives may become attainable. For that, existing resources of enterprise and internal power structure be examined carefully. The values of the top management influence the choice of objectives. A philanthropic attitude may lead to setting of socially oriented objectives while economic orientation of top management may force them to go for profitability objective.Past is important for strategic reasons. Organizations cannot deviate much from the past. Unnecessary deviations will bring problems relating to resistance to change. Management must understand the past so that it may integrate its objectives in an effective way.SMART objectivesIt is often sited that both corporate and functional objectives need to conform to a set of criteria referred toas an acronym SMART. These are summarised below:

SpecificThe objective should state exactly what is to be achieved

MeasurableAn objective should be capable of measurement so that it is possible todetermine whether (or how far) it has been achieved

AchievableThe objective should be realistic given the circumstances in which it is setand the resources available to the business.

RelevantObjectives should be relevant to the people responsible for achieving them

Time BoundObjectives should be set with a time frame in mind. These deadlines alsoneed to be realistic

2.2 Relationship between vision, mission and objectives in the company

SPECIAL PURPOSESPLAN

VISIMISSION

GENERAL PURPOSE

Reinforce the mission and vision The mission statement typically describes an organization in order to: Purpose. Why the organization exists and what it wants to achieve Business, the main method or the main activities undertaken to fulfill the purpose of the organization earlier. Values. Principles or beliefs that guide the organization's members as they pursue the organization's purpose. If the mission statement summarizes the what, how and why an organization works, then the formulation of the vision of presenting a picture in words of what would succeed it.

Arrange draft vision statement A vision is a picture of success as a guide. If the mission statement that gives a blueprint for the organization's work-what, why, and how he did his work-then it is a vision of the artist painting the realization of that mission. If the mission statement answers the question of why the organization exists, what business she lived, a vision statement answers the question, "would be like if it seems to be successful?" Drafting a vision statement. Like the mission statement, drafted a vision statement begins with intuition and ideas, developed through discussion, and generate a sense of direction and motivation together. Determination of the vision and mission Explain what is meant by the vision and mission of the organization and how it relates to the goals set and strategies designed to achieve those goals. Management vision is a desired perspective of the big picture: who we are actually, what we do, and where we will go (where we are headed). Vision is a picture of the changes on future we want to create. Meanwhile, the mission is to be implemented (the chosen track) so that the vision can be achieved. The mission serves as a map on the way the organization to achieve the expected goals achieved in the future. Every organization should strive to formulate a vision and mission in life to be able to create beliefs on each member of the organization of the truth of his ideals and noble values (core values) contained therein. The existence of a strong belief (faith) that provides energy that never runs out for any creatures to work, the energy that is provided by God for each of his servants in managing the natural environment. Preparation of the mission In the process of establishing a mission, it is important for management to define the identity of the company's business that are being or will be undertaken. To arrive at the definition of a good business, there are three factors that need to be covered are: (1) what the needs of customers who want to be served (what is being satisfied), (2) where the customer groups? (who is being satisfied), and (3) what the technology used and the functions executed to satisfy consumers (how's customer needs are satisfied) just introducing what product in the company's production is not enough and does not have any meaning. A product has no meaning in the business if it can meet the needs or desires. No needs no business. Consumers are relevant because they show that the market served. Communicating Vision and Mission Communicating the vision and mission of the subordinate is almost as important as the preparation of the vision and mission of the company itself because of the vision and mission of the company that has the vision and mission members (shared vision and mission) can serve as a tool to motivate and build commitment of employees to carry out any plan of the company. Managers need to communicate the vision in words that raises strong feelings in order to achieve organizational goals, build pride working in the company, pushing the extra action and the ability to exercise control. Control is an attempt to achieve specific objectives through the expected behavior and avoid unexpected behavior. An organization fails to achieve its objectives because of the inability and unwillingness of member organizations in working together. Inability can be improved through education and training. Meanwhile, unwillingness can be eliminated or reduced by the presence of intense communication between superiors and subordinates of the vision, mission, and values are believed to be together. Why Vision and Mission Not EffectiveIn order to find a powerful vision of the causes of the failure of an organization need to be discovered so that the leaders will be able to turn it over then formulate the vision and mission of a powerful true. Here are four reasons why the vision and mission in most organizations are not effective. 1. Ambiguity sense of vision and mission First cause of failure of vision and business mission is due to the concept and our understanding of the vision and mission that is still vague, ambiguous and unclear. 2. Vision and mission are not really desirable The vision and mission of the company could fail because of the intrinsic, the founder of the company do not really crave the achievement of that vision. 3. Vision and mission do not represent the suffering and hope The vision and mission should be able to reflect on the suffering and hopes of the organization's members, causing great spirit - a powerful vision and mission - to make it happen come true. 4. vision and mission is not believed to be achieved The vision and mission of an organization's enterprise seems doomed to fail if the statement is regarded as not realistic and difficult to achieve. That is, the statement is not trusted by the employees. In order for the vision and mission of the company or an organization lived, felt, and precipitated by the employee that is written in their hearts, there are five things you need to get attention, which is as follows. 1. The vision and mission must be made consistent and commensurate with the value system of the organization (cored shared values) Aligned means that the vision, mission, and values should be equally ideal and transcendental. Worth it means the vision, mission, and values must both support each other and compatibility. 2. Commitment After the vision, mission, and values that are believed to have been formulated together, or the elite management organization must demonstrate a commitment in its implementation. 3. Communication Vision and mission and values must be communicated to all employees with a variety of ways such as training, upgrading, and educational programs that will be a shared vision and mission. 4. Vision and mission inflexible To be effective, the vision and mission must be dynamic without losing the essence of the ideal and transcendental. The formulation of the vision and mission should be up to date and describe our progress towards the vision itself. 5. Vision and mission management system supported by appropriate Human behavior in organizations can be influenced by a variety of systems and subsystems are practiced within the organization. The vision and the mission should have been as follows: In accordance with the spirit of the times and the spirit of the organization Compatible with history, culture, and values of the organization Consistent with the present circumstances Ability to express a set of standards of excellence or distinctive competence of the organization and reflect a high ideal Able to explain the direction and goals of the organization Has the power of persuasion and able to express hopes, aspirations, sentiment, suffering, and longing members of the organization Ability to create tomorrows agenda that sharpens the focus of struggle and promise a brighter tomorrow Able to generate enthusiasm and commitment of a true heart Easy to understand because it is expressed with elegance that can be a guide strategy and tactical actions Ability to express the uniqueness of the organization Contains the norms and values that form the basis for the behavior of members of an organization that transcends religious differences, ethnic, gender, age, and characteristics of democracy.

Several examples of the vision and mission of the company

Vision and Mission PT PELNI vision: "Being Tough Shipping Company and First Choice Customer" mission: 1 Manage and develop sea transport in order to ensure the accessibility community to support the realization of insight archipelago 2 Increase the contribution of revenue for the state, employees and the environment play a role in the development and service to the community 3 Increase the value of the company through creativity, innovation, and competence development of Human Resources 4 Running a business fairly with the principles of benefit to all parties involved (stakeholders), and apply the principles of Good Corporate Governance (GCG)

Vision, mission and objectives of SHELL REFINING COMPANYVisionTo be the Top Performing and Most Admired Refinery in AsiaMissionTo continuously deliver shareholder value by:Manufacturing and supplying oil products and services that satisfy the needs of our customersConstantly achieving operational excellenceConducting our business in a safe, environmentally sustainable and economically optimum mannerEmploying a diverse, innovative and results-oriented team motivated to deliver excellenceObjectives

We are committed to deliver sustainable excellence in business performance by focusing on the following:Benefit our shareholdersRealise the potential of our peopleMeet our customer requirementsMaximise refinery marginsSafeguard asset integrityDeliver structural cost reductionsSustain a robust management systemDeliver continuous sustainable Health, Safety, Security and Environmental excellence

CONCLUSION

Services have become an integral part of the world economy. Over the past decade the role of services marketing has become a dominant feature in the service industry. The continuous shift to an information society lead to an increase in service demand from customers, meaning that organizations no longer regard services as an option but rather as a necessity to gain a competitive advantage.A broad definition of services implies that it is originally intangible and relatively quickly perishable activities whose buying takes place in a process of interaction aimed at creating customer satisfaction, but during this interactive consumption it does not always lead to material possession.Services have five unique characteristics that are not founds in goods, namely intangibility, inseparability, variability, perishability and ownership. The intangibility characteristic of services seems to be the dominant one in the definition of services. These unique characteristics create numerous challenges for service marketers to attract new customers and retain current customers.The service marketing triangle and the service mix are but two concepts used to address the challenges of service marketing. The service marketing triangle focus on three marketing processes that need to be successfully carried out to ensure service success. Firstly, external marketing takes place between the organization and the customers and represents the service promises the organization makes to customers. Secondly, interactive marketing implies the actual contact between service employees and customers and represent the fulfilment of the promise made by the organization. Thirdly, internal marketing enables the service marketer to deliver promises made to customers and is the result of interaction between the organization and its employees.The service mix concept has been developed because of the limitation of the traditional marketing mix components in their application to services. The components of the service mix are; service offerings, price, distribution, promotions, people, process and physical evidence. The three new components of the service mix, i.e., people, process and physical evidence, have the advantage that they can be fully controlled by the organization.

REFFERENCES

Kotler, P. (1996). Marketing Management. Singapore: Prentice Hall.Kotler, P. (2009). Manajemen Pemasaran. Jakarta: Erlangga.Peppers, D. (2011). Managing Customer Relationship. New Jersey: John Wiley & Sons Inc.Zemke, R. (2001). E service. New York: American Management of Association.http://www.studymode.com/essays/Summary-Services-Marketing-1030871.htmlhttp://www.marketing91.com/service-marketing-mix/http://smallbusiness.chron.com/marketing-triangle-22740.htmlhttp://www.alloutdigital.com/2012/08/what-is-service-marketing-triangle/https://www.boundless.com/marketing/services-marketing/http://www.marketing91.com/intangibility-in-services/http://www.marketingprofs.com/6/coldren2.asp

19