MGT. 406- STRATEGIC MGT.

CHAPTER 2. The Business Vision and Mission

NATURE AND ROLE OF MISSION AND VISION STATEMENTS IN

STRATEGIC MANAGEMENT.

INTRODUCTION

Strategic planning is a key function of an organization’s management that helps

to set priorities, allocate resources, and ensure that everyone is working towards
common goals and objectives. However, for strategic planning to be effective, there are
two important tools that are needed – a vision and a mission statement. These serve as
a guide for creating objectives and goals in the organization, thus providing a roadmap
that is to be followed by everyone.

Unfortunately, despite the importance of vision and mission statements, many

organizations do not have them. In other cases, the two statements are lumped together
as one or used interchangeably despite their distinctive differences. This creates a
confusion in the organization that makes it harder to achieve the set objectives and
goals.

In this article, we will look at both statements, the differences between each one
of them, and the important roles they play in an organization.

Mission and vision both relate to an organization’s purpose and are typically
communicated in some written form. Mission and vision are statements from the
organization that answer questions about who we are, what do we value, and where
we’re going.

A mission statementis a declaration of an organization’s “reason for being”. It

answers the pivotal question “What is our business?”. It is essential for effectively
establishing objectives and formulating strategies. It defines the company’s business, its
objectives, and its approach to reach those objectives.A mission statement also reveals
what an organization wants to be and whom it wants to serve. It is also called a creed
statement, a statement of purpose, a statement of philosophy, a statement of beliefs,
and a statement of business principles. Mission statements are often longer than vision
statements. Sometimes mission statements also include a summation of the firm’s
values. Values are the beliefs of an individual or group, and in this case the
organization, in which they are emotionally invested.

A mission statement describes the current state of an organization and its

primary goals or objectives. It provides detailed information about what the organization
does, how it does it, and who it does it for. Unlike the vision statement, it is short-term in
nature. However, it is related to the vision statement in that it outlines the primary goals
that will help to achieve the future the organization desires (i.e, the vision).

A vision statement is used to describe the future state of the organization, i.e.,
what the organization hopes to become in the future. It is; therefore, a long-term goal
provides direction for the organization. It also communicates the purpose of the
organization to the employees and other stakeholders and provides them with the
inspiration to achieve that purpose. A vision statementis a future-oriented declaration of
the organization’s purpose and aspirations. It describes the desired future position of
the company. A vision statement should answer the basic question, “What do we want
to become?”. It should be short, preferably one sentence, and as many managers as
possible should have input into developing the statements.
 Elements of Mission and Vision Statements are often combined to provide a
statement of the company’s purposes, goals, and values. However, sometimes the two
terms are used interchangeably.

How Mission and Vision Statements work:

Typically, senior managers will write the company’s overall Mission and Vision
Statements. Other managers at different levels may write statements for their divisions,
or business units. The development process requires managers to:

 Clearly identify the corporate culture, values, strategy, and view of the future by
interviewing employees, suppliers, and customers

 Address the commitment the firm has to its key stakeholders, including
customers, employees, shareholders, and communities

 Ensure that the objectives are measurable, the approach is actionable, and the
vision is achievable

 Communicate the message in clear, simple, and precise language

 Develop buy-in and support throughout the organization

Importance of Vision and Mission Statement in an Organization

Both the vision and mission statements play an important role in the organization.
Below is a look at these roles:

1. The vision and mission statements define the purpose of the organization and
instill a sense of belonging and identity to the employees. This motivates them to
work harder to achieve success.
2. The mission statement acts as a “North Star”, where it provides the direction that
is to be followed by the organization while the vision statement provides the goal
(or the destination) to be reached by following this direction.
3. The vision and mission statements help to properly align the resources of an
organization towards achieving a successful future.
4. The mission statement provides the organization with a clear and effective guide
for making decisions, while the vision statement ensures that all the decision
made are properly aligned with what the organization hopes to achieve.
5. The vision and mission statements provide a focal point that helps to align
everyone with the organization, thus ensuring that everyone is working towards a
single purpose. This helps to increase efficiency and productivity in the
organization.
The vision and mission statements are important tools of strategic planning, and
thus they help to shape the strategy that will be used by an organization to achieve the
desired future.
Role of the Mission Statement

Mission and vision statements play three critical roles: (1) communicate the purpose of
the organization to stakeholders, (2) inform strategy development, and (3) develop the
measurable goals and objectives by which to gauge the success of the organization’s
strategy. These interdependent, cascading roles, and the relationships among them, are
summarized in the figure.

First, mission and vision provide a vehicle for communicating an organization’s purpose
and values to all key stakeholders. Stakeholders are those key parties who have some
influence over the organization or stake in its future. You will learn more about
stakeholders and stakeholder analysis later in this chapter; however, for now, suffice it
to say that some key stakeholders are employees, customers, investors, suppliers, and
institutions such as governments. Typically, these statements would be widely
circulated and discussed often so that their meaning is widely understood, shared, and
internalized. The better employees understand an organization’s purpose, through its
mission and vision, the better able they will be to understand the strategy and its
implementation.

Second, mission and vision create a target for strategy development. That is, one
criterion of a good strategy is how well it helps the firm achieve its mission and vision.
To better understand the relationship among mission, vision, and strategy, it is
sometimes helpful to visualize them collectively as a funnel. At the broadest part of the
funnel, you find the inputs into the mission statement. Toward the narrower part of the
funnel, you find the vision statement, which has distilled down the mission in a way that
it can guide the development of the strategy. In the narrowest part of the funnel, you
find the strategy —it is clear and explicit about what the firm will do, and not do, to
achieve the vision. Vision statements also provide a bridge between the mission and the
strategy. In that sense the best vision statements create a tension and restlessness with
regard to the status quo— that is, they should foster a spirit of continuous innovation
and improvement. For instance, in the case of Toyota, its “moving forward” vision urges
managers to find newer and more environmentally friendly ways of delighting the
purchaser of their cars. London Business School professors Gary Hamel and C. K.
Prahalad describe this tense
relationship between vision and strategy as stretch and ambition. Indeed, in a study of
such able competitors as CNN, British Airways, and Sony, they found that these firms
displaced competitors with stronger reputations and deeper pockets through their
ambition to stretch their organizations in more innovative ways (Hamel & Prahalad,
1993).

Third, mission and vision provide a high-level guide, and the strategy provides a specific
guide, to the goals and objectives showing success or failure of the strategy and
satisfaction of the larger set of objectives stated in the mission. In the cases of both
Starbucks and Toyota, you would expect to see profitability goals, in addition to metrics
on customer and employee satisfaction, and social and environmental responsibility.

Leaders should emphasize the current mission statement to employees,

which clarifies the purpose and primary, measurable objectives of the organization. A
mission statement is meant for employees and leaders of the organization. Strategic
plans may involve changing the mission statement to reflect a new direction of the
organization. Highlighting the benefits of the change and minimizing the deficits will help
employees and the public buy into the change.

Another way to look at it is that mission statements describe the company's

mission as it is now and for the near future. So, if the company is undergoing major
changes, it would make sense to revise the mission statement, so it is current.

Role of the Vision Statement

Like mission statements, vision statements help to describe the organization's

purpose. Vision statements give direction for employee behavior and help provide
inspiration. Strategic plans may require a marketing strategy, which could include the
vision statement to also help inspire consumers to work with the organization.

A vision statement is a view into the future with hope and a positive outlook. It
describes a company's inspirational, long-term plan for what they'll be able to
accomplish, who they will help, and how the company will then be perceived. It's often
out of reach for now, but not so far out of reach as to be unattainable. The vision
statement gives everyone a description of what they're working towards.

Purposes of Strategic Planning

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.

Encouraging Continued Engagement

A successful change will involve communicating and repeating mission and

vision statements, which helps prevent people from becoming discouraged in the event
of small failures along the way. Leaders should continue to highlight the strengths of
the strategic plan and involve important stakeholders in the process. Engaging
employees and volunteers will help them to recognize and take ownership of the
change. Involving employees also helps to provide more minds to prevent possible
problems.
Roles Played by Mission and Vision
Mission and vision statements play three critical roles: (1) communicate the purpose of
the organization to stakeholders, (2) inform strategy development, and (3) develop the
measurable goals and objectives by which to gauge the success of the organization’s
strategy. These interdependent, cascading roles, and the relationships among them,
are summarized in the figure.

First, mission and vision provide a vehicle for communicating an organization’s

purpose and values to all key stakeholders. Stakeholders are those key parties who
have some influence over the organization or stake in its future. You will learn more
about stakeholders and stakeholder analysis later in this chapter; however, for now,
suffice it to say that some key stakeholders are employees, customers, investors,
suppliers, and institutions such as governments. Typically, these statements would be
widely circulated and discussed often so that their meaning is widely understood,
shared, and internalized. The better employees understand an organization’s purpose,
through its mission and vision, the better able they will be to understand the strategy
and its implementation.

Second, mission and vision create a target for strategy development. That is, one
criterion of a good strategy is how well it helps the firm achieve its mission and vision.
To better understand the relationship among mission, vision, and strategy, it is
sometimes helpful to visualize them collectively as a funnel. At the broadest part of the
funnel, you find the inputs into the mission statement. Toward the narrower part of the
funnel, you find the vision statement, which has distilled down the mission in a way that
it can guide the development of the strategy.

In the narrowest part of the funnel you find the strategy —it is clear and explicit about
what the firm will do, and not do, to achieve the vision. Vision statements also provide a
bridge between the mission and the strategy. In that sense the best vision statements
create a tension and restlessness with regard to the status quo—that is, they should
foster a spirit of continuous innovation and improvement. For instance, in the case of
Toyota, its “moving forward” vision urges managers to find newer and more
environmentally friendly ways of delighting the purchaser of their cars. London Business
School professors Gary Hamel and C. K. Prahalad describe this tense relationship
between vision and strategy as stretch and ambition. Indeed, in a study of such able
competitors as CNN, British Airways, and Sony, they found that these firms displaced
competitors with stronger reputations and deeper pockets through their ambition to
stretch their organizations in more innovative ways (Hamel & Prahalad, 1993).

Third, mission and vision provide a high-level guide, and the strategy provides a
specific guide, to the goals and objectives showing success or failure of the strategy
and satisfaction of the larger set of objectives stated in the mission. In the cases of
both Starbucks and Toyota, you would expect to see profitability goals, in addition to
metrics on customer and employee satisfaction, and social and environmental
responsibility.

Mission and vision both relate to an organization’s purpose and aspirations, and are
typically communicated in some form of brief written statements. A mission statement
communicates the organization’s reason for being and how it aspires to serve its key
stakeholders. The vision statement is a narrower, future-oriented declaration of the
organization’s purpose and aspirations. Together, mission and vision guide strategy
development, help communicate the organization’s purpose to stakeholders, and inform
the goals and objectives set to determine whether the strategy is on track.

The Roles of Mission and Vision

A mission statement communicates the organization’s reason for being, and how it
aims to serve its key stakeholders. Customers, employees, and investors are the
stakeholders most often emphasized, but other stakeholders like government or
communities (i.e., in the form of social or environmental impact) can also be discussed.
Mission statements are often longer than vision statements. Sometimes mission
statements also include a summation of the firm’s values. Values are the beliefs of an
individual or group, and in this case the organization, in which they are emotionally
invested. The Starbucks mission statement describes six guiding principles that, as you
can see, also communicate the organization’s values:

1. Provide a great work environment and treat each other with respect and
dignity.
2. Embrace diversity as an essential component in the way we do business.
3. Apply the highest standards of excellence to the purchasing, roasting and fresh
delivery of our coffee.
4. Develop enthusiastically satisfied customers all of the time.

5. Contribute positively to our communities and our environment.

6. Recognize that profitability is essential to our future success (Starbucks, 2008).

A vision statement, in contrast, is a future-oriented declaration of the organization’s

purpose and aspirations. In many ways, you can say that the mission statement lays
out the organization’s “purpose for being,” and the vision statement then says, “based
on that purpose, this is what we want to become.” The strategy should flow directly
from the vision, since the strategy is intended to achieve the vision and thus satisfy the
organization’s mission. Typically, vision statements are relatively brief, as in the case of
Starbuck’s vision statement, which reads: “Establish Starbucks as the premier purveyor
of the finest coffee in the world while maintaining our uncompromising principles as we
grow (Starbucks, 2008).” Or ad firm Ogilvy & Mather, which states their vision as “an
agency defined by its devotion to brands (Ogilvy, 2008).” Sometimes the vision
statement is also captured in a short tag line, such as Toyota’s “moving forward”
statement that appears in most communications to customers, suppliers, and
employees (Toyota, 2008). Similarly, Wal-Mart’s tag-line version of its vision statement
is “Save money. Live better (Walmart, 2008).”

Any casual tour of business or organization Web sites will expose you to the range
of forms that mission and vision statements can take. To reiterate, mission
statements are longer than vision statements, often because they convey the
organizations core values. Mission statements answer the questions of “Who are
we?” and “What does our organization value?” Vision statements typically take the
form of relatively brief, future-oriented statements—vision statements answer the
question “Where is this organization going?” Increasingly, organizations also add a
values statement which either reaffirms or states outright the organization’s values
that might not be evident in the mission or vision statements.

What Is a Vision Statement and Why Is it Important?

Every new business or organization begins with an idea. Behind the idea is a vision of
what the organization could be if they have the right structure, the right leadership,
adequate funding, and a group of people that believe in the vision. The vision speaks to
the organization’s purpose and why it’s important for the organization to exist. All types
of organizations, including for-profit companies, nonprofits, charities, and other groups
use vision statements to guide them with their important work. They need to be clear on
what
role the vision will serve in the organization. So, what is a vision statement?
Every vision starts with a visionary leader who is able to create mental and verbal
pictures of desirable future states. It’s also important for visionary leaders to share their
vision with their partners including customers, suppliers, and employees. The board of
directors needs to understand the importance of taking sufficient time to define the
mission, vision, and values statements. The vision statement is the basis for everything
else they do. Employees look to the vision statement for long-term direction.
Corporations exist to make a profit and work in the best interests of their shareholders.
Beyond that, many companies are interested in many other things as well. A long-term
approach to business means that the company desires to serve like-minded customers.
A vision statement caters to the characteristics and lifestyle of the customers they serve
as well as the market conditions.

Writing a vision statement is part of the strategic vision planning process. It takes
planning, time, and consideration. It’s important for boards of directors to give the
process of writing their vision statements the adequate time because it’s a critical
step in building a business. In simple terms, a vision statement is a written
document that describes where an organization is going and what it will look like
when it gets there. A vision statement can be short or long. The length of the vision
statement can be telling about the company. A vision statement describes the
company’s purpose, what the company is striving for, and what it wants to achieve.

Most writers of vision statements find that it’s a rewarding and inspiring process. It
gives them the chance to articulate the characteristics that influence the organization’s
strategy. Writing the vision statement should be a somewhat challenging process
because it has a bearing on many other parts of the business. A vision statement is
something that’s meant to be shared and proud of. The vision communicates your
organization’s value and its commitment to achieving its goals. The risk of not writing a
clear vision statement is that it gives your company the potential to veer off course.
Without a vision statement, it becomes easy to veer off course. Everyone in the
company can so easily lose focus of the goals and priorities.

Why Is a Vision Statement Important?

A vision statement isn’t just an exercise. It defines the core reason for a company’s
existence and makes work more meaningful. A vision statement usually helps to
attract and engage passionate, like-minded employees, one of the main purposes of a
vision statement. Companies can more easily build an appropriate organizational
vision culture around the vision statement and work towards strengthening the culture.
A corporate vision statement gives everyone clarity around the big picture which sets
the stage for improved decision-making and targeting the right customers.

The Importance of Vision and Mission Statements

Strategic planning is a key function of an organization’s management that helps to
set priorities, allocate resources, and ensure that everyone is working towards common
goals and objectives. However, for strategic planning to be effective, there are two
important tools that are needed – a vision and a mission statements. These serve as a
guide for creating objectives and goals in the organization, thus providing a road-map
that is to be followed by everyone. Unfortunately, despite the importance of vision and
mission statements, many organizations do not have them. In other cases, the two
statements are lumped together as one or used interchangeably despite their
distinctive differences. This creates a confusion in the organization that makes it
harder to achieve the set objectives and goals.
Both the vision and mission statements play an important role in the organization.
Below is a look at these roles:
1. The vision and mission statements define the purpose of the organization and instill
a sense of belonging and identity to the employees. This motivates them to work
harder in order to achieve success.

2. The mission statement acts as a “North Star”, where it provides the direction that is
to be followed by the organization while the vision statement provides the goal (or the
destination) to be reached by following this direction.

3. The vision and mission statements help to properly align the resources of an
organization towards achieving a successful future.

4. The mission statement provides the organization with a clear and effective
guide for making decisions, while the vision statement ensures that all the decision
made are properly aligned with what the organization hopes to achieve.

5. The vision and mission statements provide a focal point that helps to align everyone
with the organization, thus ensuring that everyone is working towards a single purpose.
This helps to increase efficiency and productivity in the organization.

The vision and mission statements are important tools of strategic planning, and thus
they help to shape the strategy that will be used by an organization to achieve the
desired future.

What is a vision statement?

A vision statement describes where the company aspires to be upon achieving its
mission. This statement reveals the “where” of a business, meaning the direction a
business is trying to go and what type of impact they wish to have.
The difference between mission and vision statements lies in the purpose they
serve. An example of vision statement:
Dunkin’: To be always the desired place for great coffee beverages and delicious
complementary doughnuts & bakery products to enjoy with family and friends.

For this coffee company, its vision is beyond remaining a large coffee chain. It wants to
be known as a coffee provider that gives its customers joy. It wants to become a place
known for fun, food, and recreation.

Mission Statement vs. Vision Statement

A mission statement clarifies what the company wants to achieve, who they want to
support, and why they want to support them. On the other hand, a vision statement
describes where the company wants a community, or the world, to be as a result of the
company’s services. A mission statement is the roadmap for the company’s vision
statement.

A mission statement is a literal quote stating what a brand or company is setting out to
do. This lets the public know the product and service it provides, who it makes it for,
and why it’s doing it. A vision statement is a brand looking toward the future and
saying what it hopes to achieve through its mission statement. This is more
conceptual, as it’s a glimpse into what the brand can become in the eyes of the
consumer and the value it will bring in longevity.

In summary, the main differences between a mission and vision statements are:
• Mission statements are the current purpose a company serves, like its functions. •
Vision statements are a look into a company’s future or what its overarching vision
is.

Importance of vision and mission statement in an organization

Both the mission and vision statement play an important role in the organization: The
vision and mission statements define the purpose of the organization and instill a sense
of belonging and identity to the employees. This motivates them to work harder in order
to achieve success. The mission statement provides the direction that is to be followed
by the organization while the vision statement provides the goal (or the destination) to
be reached by following the direction. It helps to properly align the resources of an
organization towards achieving a successful future The mission statement provides the
organization with a clear and effective guide for making decisions, while the vision
statement ensures that all the decisions made are properly aligned with what the
organization hopes to achieve The vision and mission statements provide a focal point
that helps to align everyone with the organization, thus ensuring that everyone is
working towards a single purpose. This helps to increase efficiency and productivity in
the organization.

THE PROCESS OF DEVELOPING A MISSION STATEMENT IS AS

IMPORTANT AS THE RESULTING DOCUMENT.

Peter Drucker says that asking the question, “What is our business?” is synonymous
with asking the question, “What is our mission?”
 A mission is an enduring statement of purpose that distinguishes one
organization from other similar enterprises. The mission statement is a
declaration of an organization’s “reason for being.”
 Sometimes called a creed statement, a statement of purpose, a statement of
philosophy, a statement of beliefs, a statement of business principles, or a
statement “defining our business,” a mission statement reveals what an
organization wants to be and whom it wants to serve.

The Process of Developing A Vision and Mission Statement

1. As indicated in the strategic management model, a clear mission statement is
needed before alternative strategies can be formulated and implemented.
2. It is important to involve as many managers as possible in the process of
developing a mission statement, because through involvement, people become
committed to an organization.
3. A widely used approach to developing a mission statement is to
. Select several articles about mission statements and ask all managers to read
these as background information.
a. Ask managers to prepare a mission statement for the organization.
b. A facilitator, or committee of top managers, should then merge these statements
into a single document and distribute this draft to all managers.
c. A request for modifications, additions, and deletions is needed next along
with a meeting to revise the document

A mission statement is used by a corporation to express its purpose(s) for existing in

clear and succinct language. An example of mission statement is Harley-Davidson: “We
fulfill dreams through the experiences of motorcycling.” The statement is usually brief,
consisting of a single sentence or a short paragraph. These statements have a dual
purpose: they keep staff focused on the job at hand while also motivating them to think
of
new methods to achieve the company's goals. A mission statement is important in all
parts of a business, impacting it in these fundamental ways:

1. Creating Identity

-Build a business's fundamental identity and lay the groundwork for everyone in
the organization to make decisions. A company's identity distinguishes it from
competitors, and the mission statement is one of the most specified methods to
communicate that identity to others.

2. Guiding culture

-Provides a framework for the good development of the corporate culture and
workplace environment. A company's values, traditions, and beliefs generate a
distinct cultural environment, and mission statements serve as an official means of
expressing that culture. To drive employee behaviors and corporate objectives, a
mission statement should clearly represent these beliefs.

3. Attracting talent

-Many people select whether or not to apply based on a company's goal

statement. A compelling goal statement that people can connect to attracts talented
individuals to join the firm. Mission statements enable like-minded individuals with
similar aims to organically collaborate on initiatives that are important to them.

4. Improving performance

-Mission statements give employees with a clear aim and can help them perform
better on the job. They are an excellent approach to inspire workers to contribute to
a company's long-term growth objectives. A good mission statement fosters an
atmosphere in which everyone is encouraged to produce high-quality work and hold
themselves to high standards. Employees may connect with a company's
fundamental values by reading its mission statement and applying those concepts to
their job.

5. Developing purpose

-A good mission statement provides employees a sense of purpose and

increases their involvement in their job. Mission statements assist employees
understand the meaning and purpose of their work by providing concrete examples
of how their activity contributes to a bigger objective. Mission statements assist
employees in seeing the good parts of their everyday tasks, therefore increasing
morale and fostering long-term employee involvement in the company culture.

6. Envisioning the future

-A mission statement lays out a clear vision for the company's future and guides
its progress. Employees are encouraged to consider how their activities will affect
future
 business performance and a healthy corporate culture by using mission statements.
Because mission statements drive employee activities, they may have a tremendous
influence on people's futures within the firm as well as how the organization grows
over time.

7. Building community

-Mission statements assist businesses and workers in connecting with people of

their society and establishing a positive image among consumers, clientele, and
business associates. Working for a firm with a fantastic mission statement might
help you network with like-minded people who have a common purpose.A mission
statement should entice potential consumers and community members to form good
connections with a company's brand.

8. Aligning behaviors

-Mission statements assist everyone in a team in aligning their behaviour toward

the same aims. They can utilize mission statements to analyze a corporate structure
or make policy and procedure decisions. Following a mission statement ensures that
diverse departments collaborate and that every area of the workplace contributes to
growth. Regardless of the scenario, mission statements maintain actions consistent
with desirable results.

9. Encouraging critical thinking

-Mission statements urge employees to consider the impact of their activities on

the long and short term goals of the organization. Having a clear mission statement
allows employees to evaluate how the firm may expand in diverse situations while
still adhering to its beliefs. A mission statement is essential because it gives a
succinct approach and philosophy that can be applied to every circumstance inside
a firm.

A mission statement should be developed when the organization is first formed, it

should create a mission statement. The mission statement should be evaluated and
modified every few years or as appropriate during strategic planning meetings.In
developing vision and mission statements as the strategic-management model
suggests, clear vision and mission statements are required before alternative strategies
can be developed and executed.

 People become dedicated to an organization when they are participating in

the development of these statements, therefore as many managers as
feasible should be included in the process.
 A common technique to create a vision and mission statement is to first
choose several articles on these statements and have all management read
them as background material.
  Then, ask managers to create a vision and mission statement for the
organization.
 The prepared statements should subsequently be distributed to all managers
by a facilitator or committee of top managers.
 Following that, a request for revisions, additions, and deletions is required, as
well as a meeting to edit the document. Organizations can more readily get
managers' support for other strategy development, implementation, and
assessment activities if all managers have input into and endorse the final
papers.

As a result, the process of establishing mission statements provides a fantastic chance

for strategists to gain the necessary support from all of the firm's management. Some
companies utilize manager
discussion groups to
generate and alter
current statements.
Some companies
employ an outside
consultant or facilitator to
supervise the process and
assist in the drafting of
the wording. An
outside specialist in
producing such
statements who has neutral opinions may sometimes handle the process more
successfully than an internal group or committee of management. When the papers are
in their final form, decisions on how to best convey the purpose to all management,
workers, and external audiences of a company are required. Some groups will even
create a
 videotape to explain the statement and how it came to be. Creating a thorough
mission statement is crucial because it allows different opinions among
management to be disclosed and resolved. To assist an organization's growth,
as many managers as feasible should be involved in developing statements that
encourage engagement. As the managers gather and present their ideas through
the change process, removing and adding text as needed, their active
participation fosters support for further ideas. This collaborative method
generates the required backing for future deployment and assessment as the
organization moves
forward.

The mission statement guides day-to-day operations and acts as the framework for
strategic planning and future decision making. Make certain that the statement contains
the following:
1. Motivates and inspires employee commitment
- The mission statement should inspire others. It should not be based on increased
profitability, but rather on the importance of the purpose in people's lives.
2. Based on your core competencies
- Build a purpose around a competitively better internal strength or resource that
the firm excels at in compared to rivals.
3. Realistic and clear
- Avoid making the mission too specific or too general. To minimize mission creep,
or expanding beyond our intended bounds, a mission must have a realistic
objective. Because their objective isn't clearly defined, many companies might
wander off on tangents that aren't fundamental to their purpose and are
impractical.
4. Focuses on satisfying customer needs
- Instead than focusing on the product or service, concentrate on meeting the
requirements of the customers.
5. Clear and easily understood
 - Create and compose a mission statement so that we can quickly and simply
explain why a firm exists to people we meet at a party or on an aircraft. If we
keep that in mind, the message will be naturally brief and understandable. Make
certain that the company's workforce has a fundamentally straightforward focus
for everything it does as a firm.
6. Says what the company wants to be remembered for
- A mission statement makes an indelible impact. What do you want the rest of the
world to think of you? The statement can give basic information about why we do
business.
7. Specific, short, sharply focused, and memorable
- Create a concise statement of mission that defines the core of the company in
terms that the workers and consumers will remember.

COMPONENTS OF MISSION STATEMENTS

An intelligible mission statement is essential to clarify the intentions of your

business. Traditionally, mission statements are a blend of realism and optimism—two
terms generally at odds with one another—and striking a balance between the two is
the ultimate key to writing a great mission statement. So before you start your start-up,
be sure to review these four key elements on developing a truly effective mission
statement.

Include the 4 Key Elements

Sure, mission statements can—and should—have that optimistic spin, but they ought to
serve a real purpose. There are four key elements found in effective statements: Value,
inspiration, plausibility, and specificity. In a couple of short sentences, you should be
able to convey the value of your company or why your brand exists, inspire and
encourage your employees, sound completely reasonable and plausible, and be as
specific and relevant as possible. Find a key theme for your company, and make sure
each of these components revolve around it.

Keep It Short and Sweet

Remember: This is a mission statement, not a mission essay. Try to sum up your entire
company's mission in one or two sentences. Think of it this way: Your mission
statement, at its absolute best, should be able to double as your slogan. Concise
mission statements are also more memorable and

effective. So there's no need to make it overly complicated; just state the purpose of
your company, your reason for starting it in the first place.

Consider Long-Term vs. Short-Term

Mission statements can be wildly different from one company to the next. The idea here
is to choose whether you want your company's statement to reflect its short-term goals
or its long-term aspirations. Be sure to choose only one; specificity is key to an
influential mission. While short-term mission statements allow you to be more specific
with your goals, they also need to be updated more often to stay relevant. If you want
the statement to be a long-term reflection, use global language indicative of your
company's purpose,
regardless of how much your company might expand in the future.

Test It

If you're revamping your statement, don't blindside your employees with the new
message; test it out on them first. Distribute drafts of the mission statement to every
employee, and ask them what, if anything, should be added or changed. Not only will
you get a better, more comprehensive statement, but your employees will be more
invested in it because they helped form it. Your mission statement needs to accurately
reflect your company, and being transparent with your employees will help create a
great message.

Revisit It Often

Evolution is inevitable. However, all too often a mission statement is written around the
time of a company's birth and then forgotten about. Your statement ought to be an
important representation of your company culture. It's an opportunity to institute an
overall sense of identity and should be constantly maintained and referred to.
Incorporate the ideas and themes of the statement in how you run your business, and
be sure to revisit it regularly to make any necessary changes. No company ever stays
exactly the same. Tweaking your statement ensures that it constantly parallels the
direction of your company.

Now the world of business is becoming more and more competitive and in order to
survive in this competitive environment, proper strategic management is very
important. As a strategic tool a mission statement development is widely considered to
be the first step in strategic planning and the basis or starting point for all activities in
formulating strategies. Defining a clear mission for the business is very important for
setting future goals and strategies of the business. It provides an idea of what does an
organization wants to achieve and whom it will be benefitted. Cambell, Devine and
Young (1993) [1], in their famous book called ‘A Sense of Mission’ has quoted from the
speech of Colin Marshall (Deputy Chairman, British Airways) that, "A corporate
mission is much more than good intention and fine idea. It represents the framework
for the entire business, the values which drive the company and the belief that the
company has in itself and what it can achieve".
A neatly worded mission statement helps the employees and other stakeholders of a
concern to know what the business of the concern is and to discover that each of them
are giving importance to concern in the journey towards achieving the goals.
According to Peter Drucker (1973) [2], "A business is not defined by its name, statues,
or articles of incorporation. It is defined by the business mission. Only a clear definition
of mission and purpose of the organization make possible clear and realistic business
objectives".
A mission statement should be informative, inspiring, enduring, concise, clear, and
conducive to both employees and customers forming an emotional bond with the firm.
Most practitioners and academicians of strategic management assert that an effective
mission statement should include the nine components which are suggested by Fred
R. David. These are as under:
1) Customers - Who are the firm’s customers?
2) Products or services - What are the firm’s major products or services?
3) Markets - Geographically, where does the firm compete?
4) Technology - Is the firm technologically current?
5) Concern for Survival, Growth, and Profitability - Is the firm committed to growth
and financial soundness?
6) Philosophy - What are the basic beliefs, values, aspirations, and ethical priorities
of the firm?
7) Self-Concept - What is the firm’s distinctive competence or major competitive
advantage?
8) Concern for Public Image - Is the firm responsive to social, community, and
environmental concerns?
9) Concern for Employees - Are employees a valuable asset of the firm?
It is very much visible that in above suggested ‘mission statement components’ Fred R.
David tries to cover both the views of considering mission statement as a strategic tool
and including ethics and philosophy.

HOW CLEAR VISION AND MISSION STATEMENTS CAN BENEFIT OTHER

STRATEGIC MANAGEMENT ACTIVITIES.

 "If you don't know where you're going, any road will take you there." These lyrics
to George Harrison's song "Any Road" are as true in business as in any other
walk of life. Managers must define and communicate a clear strategy if the
company is to be successful. Vision and mission statements summarize a
company's business strategy in a form that can be communicated and
understood easily by stakeholders.

 Tip

 Vision and mission statements help a company articulate long-term goals and
concepts for a business and should be considered when crafting new strategic
approaches to business problems or service expansion. The statements
summarize strategy in an easily communicated and understandable format.

 The Vision Statement

 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.

 The Mission Statement

 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 Management Process

 The development of vision and mission statements is an essential part of the

strategic management process. Having clearly defined the vision and mission of
 the organization, managers then can set strategic objectives that are aligned with
the company's long-term goals. Managers translate these strategic objectives
into an operational strategy that can be implemented, monitored and evaluated.
The outcome of the evaluation will determine whether any revision of the vision
statement, mission statement, objectives or operational strategy is required.

 Alignment with Business Goals

 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.

 Creating Mission and Vision Statements

 Setting a vision statement requires envisioning the future of your company as the
present. Picture the best outcome your enterprise can have and describe it while
avoiding specific measurable terms. For example, a local public relations firm
may have a simple vision statement of "To create the largest PR firm in northeast
Texas" instead of "To secure 10 contracts with Fortune 200 companies in year
one."

 A mission statement is a bit more specific and usually answers a few key
questions. Think about your business, who it serves, what it provides and how,
then define it. Consider the PR firm again: "It is the mission of NE Texas
Grassroots PR to provide local and global business owners with the public
relations services they need to succeed at a price balanced carefully against the
results we provide. Our staff of experts provide a comprehensive PR approach
and consider client-service the top priority."

Some of the benefits of having a vision and mission statement are discussed
below:

■ Above everything else, vision and mission statements provide unanimity of

purpose to organizations and imbue the employees with a sense of belonging
and identity. Indeed, vision and mission statements are embodiments of
organizational identity and carry the organizations creed and motto. For this
purpose, they are also called as statements of creed.

■ Vision and mission statements spell out the context in which the organization
operates and provides the employees with a tone that is to be followed in the
organizational climate. Since they define the reason for existence of the
organization, they are indicators of the direction in which the organization must
move to actualize the goals in the vision and mission statements.

■ The vision and mission statements serve as focal points for individuals to identify
themselves with the organizational processes and to give them a sense of
direction while at the same time deterring those who do not wish to follow them
from participating in the organization’s activities.

■ The vision and mission statements help to translate the objectives of the
organization into work structures and to assign tasks to the elements in the
organization that are responsible for actualizing them in practice.
 ■ To specify the core structure on which the organizational edifice stands and to
help in the translation of objectives into actionable cost, performance, and time
related measures.

■ Finally, vision and mission statements provide a philosophy of existence to the

employees, which is very crucial because as humans, we need meaning from the
work to do and the vision and mission statements provide the necessary
meaning for working in a particular organization.

As can be seen from the above, articulate, coherent, and meaningful vision and mission
statements go a long way in setting the base performance and actionable parameters
and embody the spirit of the organization. In other words, vision and mission statements
are as important as the various identities that individuals have in their everyday lives.

It is for this reason that organizations spend a lot of time in defining their vision and
mission statements and ensure that they come up with the statements that provide
meaning instead of being mere sentences that are devoid of any meaning.

How can a company benefit from having good vision and mission statements? Well
constructed, communicated and integrated Vision and Mission statements can help
align and focus an organisation. They define in clear, precise and inspiring terms an
organisation's reason for existing (Mission) and where it is going (Vision), helping to
drive success now and in the future.
Let's explore deeper what the benefits of well-constructed Vision and Mission
Statements are and why those benefits may exist. By understanding what we can
achieve with excellent Vision and Mission statements, we will be better able to
recognise good Vision and Mission statements, as well as create our own.

Benefits of Vision and Mission Statements

A Vision Statement describes the future state that an organisation is working towards
achieving. Vision is the long term goal of an organisation. What long term means
depends on the context? For a typical organisation, a Vision may be looking ten years
ahead, but for larger firms, or ones that are pursuing more ambitious ends, their Vision
maybe twenty, thirty or more years in the future.

A Mission statement describes the organisation's purpose or its high-level business

strategy. A Mission statement should answer the following questions clearly with laser
focus:

 What does the organisation do?

 For who does the organisation do it?
 How does the organisation do what it does?
Vision and Mission Statements have no power unless they are shared. If the Vision and
Mission statements resonate only with the authors, then they will not be very effective at
guiding and driving the organisation. Creating the Vision and Mission statements is
done from the ground up or the top down or both. Once created, the Vision and Mission
must be communicated, integrated and adopted by all parts of the organisation.

Vision and Mission statements are successful if anyone in the organisation can recall
them upon request and does so with a hint of pride. Then the Vision and Mission can
yield benefits like:

1. Guide the Thinking and Actions of Employees

When people are about to invest a lot of time and energy into an endeavour, they want
to know they are doing "the right thing". They want to know their actions will not
generate criticism and hopefully garner praise.

If there are clear Vision and Mission statements, the whole organisation has adopted
them, and the employee has correctly interpreted them, then an employee can ask "Will
this action be in alignment with our Mission? Will this action get us closer to our
Vision?"

Having a reliable way for someone in an organisation to internally validate their thinking
and actions means they can focus more of their time on moving the organisation
forward rather than worrying about justifying the soundness of what they are doing.

2. Help Determine and Inform Performance Standards

Like guiding thinking and actions of employees, strong Vision and Mission statements
will make it much easier to construct transparent and consistent performance standards
and measurements. One can ask "What behaviours do we want to
encourage/discourage that would bring us in alignment with our Mission and closer to
our Vision?"

Not only can performance tools be aligned to the Vision and Mission, but the
performance tools can be used to help align the organisation.

3. Help Attract Appropriate Talent

Clear and easily understood Vision and Mission statements help with hiring in several
ways. Making the Vision and Mission not only public but also communicating them to
candidates means that some candidates will select themselves out because they know
the organisation would not be a good fit for them.

Since performance standards align with the Vision and Mission, then we know what
behaviours, characteristics and skills are needed to help fulfil the Mission and achieve
the Vision. When conducting interviews, interviewers can use the information to guide
their questioning and assessment of candidates.

4. Provide Context and Reduce Friction During Organisational Restructures

Organisational Restructures and major reallocations of resources can be very stressful.
However, if the restructure aligns with the Vision and Mission, it can help give some
context to the restructure.

When people understand why the change has to happen, and they can see how that
change would improve the organisation, then they are going to be more accepting even
if it might cause some personal grief.

5. Provide a Stable Framework that can Outlast Internal Changes

Creating a crisp and inspiring Mission and Vision and then weaving it into the fabric of
an organisation is hard. But when the Vision and Mission are an integral part of the
organisation they give the company strength and direction well after those who helped
create it are gone.

A charismatic leader or founder may leave, or C level management may change, but the
company continues from strength to strength. The Vision and Mission providing an
almost spiritual leadership that can help ensure the actual leaders that take over
following in the footsteps of those who came before them.
6. Inspire People to be Focused and Productive
The Vision and Mission need to be inspiring. They need to resonate with everyone in
the organisation. They need to help provide meaning and purpose. Therefore, Vision
and Mission can't just be about increasing revenue because that doesn't motivate
someone doing their shift in Customer Service.

Once a Vision and Mission have sparked inspiration with the individual, the team and
the organisation, then they operate in a state of focus. Being focused allows an
individual and an organisation to channel their energy and creativity into a single and
concentrated direction, the Vision and Mission. It is the difference between trying to
push a blunt pencil versus a sharp pencil through a sheet of paper.

7. Facilitate Collaboration with Teams, Customers, Suppliers and Partners

When teams in an organisation have a common Vision and Mission, they can look
beyond internal politics and KPIs and can collaborate. Helping you may cost me, but it
brings us closer to our Vision and Mission.

When the Vision and Mission are crisp and inspiring, beyond just those in the
organisation, then customers, suppliers and partners can feel part of something special
too. Customers know why they use your services. Partners know why they collaborate
with you rather than a competitor and Suppliers feel proud that their product or service
can help you achieve your Vision and Mission.

8. Help with Public Relations

Since Vision and Mission help define an organisation's identity, then it makes sense that
the Vision and Mission are an important part of a company's Public Relations strategy.
Who we are, what we do, and why we do it are enshrined in the Vision and Mission, and
that is also what we want to communicate to the outside world.

Since the company arranges itself around the Vision and Mission, aligning the
company's brand and communications with the Vision and Mission means that there will
be consistency between what happens inside and what is communicated outside.
Keeping the company and its public image in sync gives its public persona greater
gravitas.

EVALUATE MISSION STATEMENTS OF DIFFERENT ORGANIZATION

Nine Essential Components of a Mission Statement

 Several authors have identified several different numbers of components that should be
present in ‘good mission statement’. Two years later, (David, 1989)identified nine key
components i.e. customers, products / services, markets, technology, concern for survival,
philosophy, self-concept, concern for public image, and concern for employees. Bart (1997)
expands the list to 20 components by adding such items as specific financial objectives and
concern for survival.

However, a mission statement should be informative, inspiring, enduring, concise, clear,

and conducive to both employees and customers forming an emotional bond with the firm.
Most practitioners and academicians of strategic management assert that an effective mission
statement should include the nine components which are suggested by Fred R. David.

Components Definition

1. Customers Who are the firm’s customers? Example: Our

customers are outdoor enthusiasts seeking fishing
excitement and adventure.

2. Products or Services What are the firm’s major products or services?

Example: We provide fast, clean boats, all the bait
and tackle needed, and friendly first mates to
create memories for a lifetime.

3. Markets Geographically, where does the firm compete?

Example: Our fleet of fast, clean vessels operate
all along the Florida Gulf Coast

4. Technology Is the firm technologically current? Example: Our

vessels are equipped with the very latest safety and
fish finding equipment to ensure that customers
comfortably are “catching rather than just fishing.”

5. Concern for Survival, Growth, and Is the firm committed to growth and financial
Profitability soundness? Excellent: Our prices are as low as
possible to provide customers great value in
conjunction with high employee morale and a
reasonable return for our owners.

6. Philosophy What are the basic beliefs, values, aspirations, and

ethical priorities of the firm? Example: We assure
customers the upmost courtesy and care as our
motto on every vessel is to follow the Golden
Rule.

7. Self-Concept What is the firm’s distinctive competence or major

competitive advantage? Example: For customer
enjoyment and safety, we provide the most
experienced staff in the industry.
 8. Concern for Public Image Is the firm responsive to social, community, and
environmental concerns? Excellent: Our vessels
use emission-friendly engines; we strive to bring
repeat tourists to all communities where we
operate

9. Concern for Employees Are employees a valuable asset of the firm?

Example: Our on-the-water and off-the-water
employees are “on a mission” to help customers
have a great time.

Evaluation Matrix

 To determine whether a component is satisfactorily included in a mission

statement, ask yourself:
o does the mission statement answer the key question associated
with this component?
o Can I/we communicate with this component better?
 simple inclusion of the word customers or employees or
technology is not adequately informative or inspiring.

 other criteria- clear, informative, inspiring, less than or equal to 200 words.
 developing a mission statement is not a once-and-for-all job.

Criteria for Evaluating a Mission Statement

 Is our mission statement focused on satisfying customer needs rather than being focused
on the product?
 Does our mission statement tell who our customers are?
 Does our mission statement explain what customer needs our company is trying to satisfy?
 Does our mission statement explain how our company will serve its customers?
 Does our mission statement fit the current market environment?
 Is our mission statement based on our core competencies? (A core competency is a
company strength.)
 Is our mission statement motivating and does it inspire employee commitment?
 Is our mission statement realistic?
 Is our mission statement specific, short, sharply focused and memorable?
 Is our mission statement clear and easily understood?
 Does our mission statement say what we want to be remembered for?

Evaluate mission statement of different organization

Apple's Mission Statement:

"Apple has always been different. A different kind of company with a different view of the
world. It's a special place where we have the opportunity to create the best products on earth -
products that change lives and help shape the future. It's a privilege we hold dear."

Casper Mission Statement:

“Great sleep, made simple. Even the items Casper products ship with address how to sleep better.”

Google Mission Statement:

"Google’s mission is to organize the world’s information and make it universally accessible and
useful."

HubSpot's Mission Statement:

"To make the world Inbound. We want to transform how organizations attract, engage and
delight their customers."

Microsoft Mission Statement:

“Our mission is to empower every person and every organization onthe planet to achieve
more.That hasn't changed.”

Life is Good Mission Statement:

“To spread the power of optimism.”
Sweetgreen Mission Statement:

“To inspire healthier communities by connecting people to real food.”

Patagonia Mission Statement:

“Build the best product, cause no unnecessary harm, use business to inspire and implement
solutions to the environmental crisis.”

American Express Mission Statement:

“We work hard every day make American Express the world's most respected service brand.”

Warby Parker Mission Statement:

“To offer designer eyewear at a revolutionary price, while leading the way for socially conscious
businesses.”
 VisionApp Mission Statement:

“Question Assumptions. Think Deeply. Iterate as a Lifestyle. Details, Details. Design is

Everywhere. Integrity.”

IKEA Mission Statement:

“Offer a wide range of well-designed, functional home furnishing products at prices so low that
as many people as possible will be able to afford them.”

Nordstrom Mission Statement:

“To give customers the most compelling shopping experience possible.”

Cradles to Crayons Mission Statement:

“Provides children from birth through age 12, living in homeless or low-income situations, with
the essential items they need to thrive – at home, at school and at play.”

Universal Health Services, Inc. Mission Statement:

“To provide superior quality healthcare services that: PATIENTS recommend to family and
friends, PHYSICIANS prefer for their patients, PURCHASERS select for their clients,
EMPLOYEES are proud of, and INVESTORS seek for long-term returns.”

JetBlue Mission Statement:

“To inspire humanity – both in the air and on the ground.”

Workday Mission Statement:

“To put people at the center of enterprise software.”

Prezi Mission Statement:

“ To reinvent how people share knowledge, tell stories, and inspire their audiences to act.”
Tesla Mission Statement:

“To create the most compelling car company of the 21st century by driving the world’s transition
to electric vehicles.”
Invisible Children Mission Statement:
“To end violence facing our world's most isolated and vulnerable communities.”
TED Mission Statement:

“ Spread ideas.”
Nike Mission Statement:

“Create groundbreaking sports innovations, make our products sustainably, build a creative and
diverse global team, and make a positive impact in communities where we live and work.”

“We strive to offer our customers the lowest possible prices, the best available selection, and the
utmost convenience.”
Southwest Airlines Mission Statement:

“The mission of Southwest Airlines is dedication to the highest quality of customer service
delivered with a sense of warmth, friendliness, individual pride, and company spirit.”
Asos Mission Statement:

“Become the world’s number-one destination for fashion-loving 20-somethings.”

Loreal Mission Statement:

“To provide the best in cosmetics innovation to women and men around the world with respect
for their diversity.”
Bulletproof Mission Statement:

“Help people perform better, think faster, and live better using a proven blend of ancient
knowledge and brand new technologies, tempered by research, science, and measured results
from our customers, top athletes, and medical professionals.”
Sturbucks Mission Statement:

“To inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time.”
Passion fruit Mission Statement:
“We strive to create inclusive clothing and accessories that enable you to show your pride all
year round while giving back to our community.”
Urban Outfitters Mission Statement:

“A lifestyle retailer dedicated to inspiring customers through a unique combination of product,

creativity and cultural understanding. Founded in 1970 in a small space across the street from the
University of Pennsylvania, Urban Outfitters now operates over 200 stores in the United States,
Canada, and Europe, offering experiential retail environments and a well-curated mix of
women’s, men’s, accessories and home product assortments.”
REI Mission Statement:

“At Recreational Equipment, Inc. (REI) we believe a life outdoors is a life well-lived. We
believe that it’s in the wild, untamed and natural places that we find our best selves, so our
purpose is to awaken a lifelong love of the outdoors, for all.”
Slack Mission Statement:

“Make work-life simpler, more pleasant, and more productive.”

The Coca Cola Company Mission Statement:

“Refresh the world. Make a difference.”

Asana Mission Statement:

“Asana’s mission is to help humanity thrive by enabling the world’s teams to work together
effortlessly.”
UPS Mission Statement:

“What We Seek to Achieve: Grow our global business by serving the logistics needs of
customers, offering excellence and value in all that we do. Maintain a financially strong
company-with broad employee ownership-that provides a long-term competitive return to our
shareowners. Inspire our people and business partners to do their best, offering opportunities for
personal development and success. Lead by example as a responsible, caring, and sustainable
company making a difference in the communities we serve.”
Great lakes brewing Company (brewery) Mission Statement:

“Passion for our product – respect Resources – Foster Relationships – Share Success”
Harvest Group (retail growth agency) Mission Statement:
 “To glorify God while serving our clients and people with a passion for growth. Harvest works
with innovative entrepreneurs as well as some of the world’s largest, most-respected CPG
companies.”
AM Transport Services Mission Statement:

“A.M. Transportation is a professional and experienced provider, understanding the needs and
contributing to the success of customers by arranging for transportation of their freight with the
most reliable transportation methods in North America while providing our employees a
supportive work environment fostering decision-makers and problem solvers.”
Armor protective packaging Mission Statement:

“Armor Protective Packaging is an international corrosion management system provider with

global reach and a proven, world-class reputation for quality.”
Consuela Mission Statement:

“This isn’t about selling handbags, it’s about manifesting a feeling, an experience, and a
community – all in honor of the journey.WHY? Because it’s not about the bag, it’s where you
take it.”
Camp Gladiator Mission Statement:

“Our mission is to positively impact the physical fitness and ultimately the lives of as many
people as possible.”
Cohen architectural woodworking Mission Statement:

“Transforming every life we touch by the way we treat people and the beautiful work we produce.”
Honest Tea Mission Statement:

“Honest Tea seeks to create and promote great-tasting, healthy, organic beverages. We strive to
grow our business with the same honesty and integrity we use to craft our recipes, with sustainability and great taste for all.”

Examples:

1.
PepsiCo Mission Statement

“PepsiCo’s mission statementis to increase the

value of our shareholders’ investment. We do this
through sales growth, cost controls, and wise
investment resources. We believe our commercial
success depends upon offering quality and value to
our consumers and customers; providing products
that are safe, wholesome, economically efficient and environmentally sound; and providing a
fair return to our investors while adhering to the highest standards of integrity.”

2.

Coca Cola Mission Statement

“To refresh the world - in mind,

body and spirit… To inspire moments of optimism - through our brands and actions… To create value an

3.

Nestlé Mission Statement

“Nestléisthe world's leading

nutrition, health and wellness
company. Our mission of "Good
Food, Good Life" is to provide
consumers with the best tasting, most
nutritious choices in a wide range of
food and beverage categories and
eating occasions, from morning to
night.”

4.
 McDonald’s Mission Statement

“McDonald's brand mission is to

be our customers' favorite place and way to
eat and drink. Our worldwide operations
are aligned around a global strategy called
the Plan to Win, which center on an
exceptional customer experience – People,
Products, Place, Price and Promotion. We
are committed to continuously improving
our operations and enhancing our
customers' experience.”

Evaluation Matrix of Mission Statements Components

Organization Customers Products or Markets Technology Concern for

services Survival,
Growth, and
Profitability

PepsiCo Yes No No Yes No

Coca- Cola No No Yes No No

Nestlé No Yes Yes No No

McDonalds Yes No Yes No Yes

Organizations Philosophy Self-Concept Concern for Concern for

Public Image Employees

PepsiCo Yes No No No

Coca- Cola Yes No No No

Nestlé No Yes No No

McDonalds Yes Yes No No

WRITE A GOOD VISION AND MISSION STATEMENTS

How to Create a Mission Statement

To develop your mission statement, follow the steps below:

Step 1: Develop Your Winning Idea

First, identify your organization's "winning idea," or unique selling proposition

(USP). This is the idea or approach that makes your organization stand out from its
competitors, and it is the reason that customers come to you and not your competitors.

Tip:
Developing a "winning idea" is a core goal of business strategy , and it can take a lot of
effort to find, shape, test, and refine. To start, see our articles on USP Analysis , SWOT
Analysis and Core Competence Analysis .

Step 2: Clarify Your Goal

Next, make a short list of the most important measures of success for your winning
idea.

For instance, if it is to create cutting-edge products in a particular industry, how will you
know when you've accomplished this goal? If your idea is to provide excellent customer
service, what key performance indicator will let you know that your customers are
truly satisfied?
You don't have to include exact figures here, but it's important to have a general idea of
what success looks like, so that you know when you've achieved it.

Combine your winning idea and success measures into a general, but measurable goal
. Refine the words until you have a concise statement that expresses your ideas,
measures and a desired result.Keep this statement in the present tense, and make sure
it is short, simple , clear, and free of jargon . Yes, the language needs to be inspiring,
but don't include adjectives just so it "sounds better."
Example 1
Produce store Farm Fresh Produce's winning idea is to "provide farm freshness." The
owner identifies two key measures of the company's success: freshness and customer
satisfaction. She creates the following mission statement, which combines the winning
idea and her measures of success:

"To be the number one produce store in Main Town by selling the highest quality,
freshest farm produce directly from farm to customer, with high customer satisfaction."

Example 2
Carl has just become the leader of a new team. The team will focus on one key project:
streamlining the organization's internal databases, so that the entire system runs
smoothly and without problems.With this in mind, Carl creates a mission statement to
guide his team's understanding of their purpose:

"Our team's goal is to streamline our organization's database management system

within 12 months. We will develop a new system that is easy to use and reduces the
frequency of user errors.

Other Tips for Creating an Effective Mission Statement

There are many schools of thought on how to go about creating the perfect mission
statement, but there are some clear do's and don’ts to consider.

 Do keep it short and concise. Sum up the company’s mission in just a few
sentences.
 Don’t write an essay. That is not the purpose of this brand building tool. You
want the mission statement to be tethered to the brand and that means it must be
memorable. Long drawn out prose is rarely memorable.
 Do think long-term. The mission statement is an investment in your company’s
future, so keep it open enough to reflect your long-term goals.
 Don’t make it too limiting. We want to provide the best products ever to the
town of Elmwood. Do you only see the business selling to the residents of one
small town or do you hope to expand at some point?
 Do find out what your employees think of the mission statement. This is a
tool designed with them in mind, too, so get their opinion. Ask how they would
improve it and what they dislike about it.
 Don’t be afraid to change it. Things change in the business world. If the
mission statement no longer represents the company, it is time for a rewrite.

Vision
Vision is future-oriented and describes where an organization would like to be
positioned in the market in 5, 10, 15, or 20 years’ time. It is a goal state embodying a
long- term ambition of where an organization would like to be in the future relative to its
competitors. Cornelissen (2004) explained that a vision or strategic intent is the desired
future state of the organization. “It is an aspirational view of the general direction in
which the organization wants to go, as formulated by senior management, and requires
the energies and commitment of members of the organization”. Organizational vision is
normally expressed through a simple one-line vision statement. These types of
statement offer a strategic attainment goal that may be somewhat ideal or normative
relative to real- world constraints, but offers inspiration to the organization to overcome
barriers in a concerted effort. In that respect, vision statements are key drivers of
organizational innovation, the commitment and motivation of employees, effectiveness,
and success in the competitive arena. What is the origin of organizational vision?
Although vision statements may originate with key founders or visionary leaders, many
scholars view vision as originating from organizational culture. Noting the connection to
ethical values, the authors Larwood, Falke, Kriger, and Miesing (1995) regard vision as
a pattern of organizational values that underlies a unique visionary blueprint for an
organization’s future. The connection of vision to ethics is indeed a prominent and
strong one because the values of the organization are the foundation of its drive and
vision, explaining what that drive seeks to attain. The vision statement of an
organization should be institutionalized throughout its organizational culture so that it is
alive, active, known, and frequently referred to, as opposed to being a forgotten part of
a dusty policy manual. Vision statements should drive organizational culture. Vision can
be determined by asking the question, what is it that the organization is pursuing?

Another definition of Vision, A vision statement is the anchor point of any strategic plan.
It outlines what an organization would like to ultimately achieve and gives purpose to
the existence of the organization. A well-written vision statement should be short,
simple, specific to your business, leave nothing open to interpretation. It should also
have some ambition.

The Importance of Vision

 Good business leaders create a vision, articulate the vision, passionately own the
vision, and relentlessly drive it to completion. —Jack Welch, former CEO of General
Electric. As the quote from Jack Welch suggests, a vision is one key tool available to
executives to inspire the people in an organization. An organization’s vision describes
what the organization hopes to become in the future. Well-constructed visions clearly
articulate an organization’s aspirations. Google’s mission is to organize the world’s
information and make it universally accessible and useful (Edwards, 2012). Google
expands on its mission by listing “Ten things we know,” including “Focus on the user
and all else will follow,” “It’s best to do one thing really, really well,” and “Fast is better
than slow” (Google Inc., 2014).
An organization’s vision describes what the organization hopes to become in the future.
Visions highlight the values and aspirations that lay at the heart of the organization.
Although vision statements have the potential to inspire employees, customers, and
other stakeholders, vision statements are relatively rare and good visions are even
rarer. Some of the visions being pursued by businesses today are offered below.