Expert Speak: Mr. GK Pramod

Vision Statement For Your Enterprise

What is vision statement?
Vision means the long term goals of the business organization.

Let us ask the following questions to microlevel entrepreneur Charan Singh and Sunanda Pai to gauge the understanding of microlevel entrepreneurs regarding their vision statements.

Expert: “Dear Charan Singh and Sunanda Pai, can you tell me what is the long term objective of your business organization?”
Charan Singh: “Sir, I want to make more money”.
Expert: “Charan, I know every businessman is interested in making money, but my question is “What is the long term objective of your organization?”
Charan Singh: “Sir, please give me an example of vision statement so that I could understand it in a better way.”
Expert: “Ok. I think you know Amul (Amul is a milk product producing company located at Gujarat in India). Amul is a famous brand in the international market. Please note that Amul also started its business on a very small scale.”
“Amul’s vision is to provide more and more satisfaction to the farmers, their customers, employees and distributors.”
Source: www.amul.com
 

Cane-o- la which serves natural fresh sugarcane juice has the following vision
“To evolve as one of the best producer of quality sugarcane which is organically grown, extract juice scientifically and serve a totally natural, healthy and hygienic DESI refreshment in the world and continue to retain the position through constant education analysis, development and implementation as required by social, scientific, economic and humanitarian perceptions.”
Source: www.cane-o-la.com
 

Expert: Is it clear?”
Sunanda Pai: “Yes Sir, it is clear.”
Expert: “Now I want both of you to make a vision statement of your organization. I will give some inputs to you. Look at the self SWOT analysis and organization SWOT analysis and take the inputs from that to make the vision statement.”

Both of them agreed to do so and requested some more time to formulate their vision statements.

After one hour both of them came with their set of vision statements. Charan Singh (Fertilizer business) made the following vision statements for his organization and along with the expert; Charan Singh did the analysis of their points.

Vision Statements (VS) for Charan Singh’s organization along with expert’s analysis:

VS-1: To sell good fertilizer to customer.
Expert Analysis: This may not be the long term vision statement.

VS-2: To provide the best quality fertilizer, seeds, agro-equipments and pesticides for customer. 

Expert Analysis: This may not be the long term vision statement. 

VS-3: To be the one stop solution for farmers. 

Expert Analysis: This is more suitable.

After the discussion, Charan Singh and expert decided the long term objective of Charan Singh’s organization. The Vision statement for Charan Singh’s organization is “To be the one stop solution for farmers”
 

Sunanda Pai also came up with the following Vision statements for her organization and along with the expert; Sunanda Pai did the analysis of their points.
 

Vision Statements (VS) for Sunanda Pai’s organization along with expert's analysis:

VS-1: To create adventurous attitude to our customers.Expert Analysis: Creating the adventurous attitude for the customers would be a difficult task. So this was rejected.

VS-2: To give the best experience of adventure sports to our customers.Expert Analysis: Sunanda Pai’s organization can always provide the best experience of adventure sports to their customers irrespective of very high investments. If Sunanda Pai can sustain the business for another 3 to 4 years, then definitely her organization can become the leader. This Vision statement is more practical.

VS-3: To be the global leader in the adventure business.Expert Analysis: For a Microlevel Entrepreneur to become a global leader, Sunanda Pai has to invest more money in her organization. This was practically difficult. Hence, this Vision statement was also rejected.

VS-4: To do business of Rs.50 Lac in the next 3 years.

VS-5: To open branches all over India.
Expert Analysis: The expert senses that points 4 and 5 will not make up a Vision statement because they are not long term objectives of Sunanda Pai’s organization (doing Rs.50 Lac in next one year, opening branches all over India are considered to be short term goals.) So, points 4 & 5 were rejected.

Based on this analysis, the expert and Sunanda Pai decided that the vision statement for Sunanda Pai’s adventure sport business is “To provide the best experience in adventure sports to our customers”
 

Importance of Vision statement

• Vision provides a long term goal of the organization.
• This would help the microlevel entrepreneur to setup a proper direction for his business.

Methodology for making Vision statement 

Step-1: Address all the microlevel entrepreneurs and explain to them what is a vision statement and also, how to make a vision statement?
Step-2: Ask the microlevel entrepreneur to look into personal and organizational SWOT analysis, and come up with a few vision statements.
Step-3: Growth Strategists/CEOs can sit face-to-face with the microlevel entrepreneur, analyse the vision statement, and arrive at a common vision statement for the microlevel entrepreneur.
 

Author’s Key Points:

• Vision of the organization is very important to achieve the long term objectives of the organization.
• The microlevel entrepreneur and growth strategists/CEOs need to have open minded discussion in making vision statement.
• Vision should be the nucleus of the organization.

The blog has been authored by Mr. GK Pramod, Co-founder, The Second Gear - MBA for Non MBA's Mentoring Module Concept.
To contact the author, e-mail at gk@tothesecondgear.com
 

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