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Written Assignment Unit 1

University of People

Instructor: Dr. Anju Mehta

BUS 5117 - Strategic Decision Making and Management

Sep 2023
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A company that competes in the global market possesses inherent strength as it emerges from the local
market, largely due to the advancements in information systems and technology. In order to effectively
execute all of the company's activities, it is crucial for the organization to establish a clear strategic
vision, mission, and goals. According to Kennedy (2020), a vision represents the organization's
aspirations and serves as a guiding principle for its strategies. The mission statement defines the
organization's identity that it must uphold. The company's objectives function as a roadmap for
employees and other stakeholders, guiding them towards achieving the vision and fulfilling the
organization's purpose (Kennedy, 2020).

Three essential elements for a company competing in the global market and their significance.

Vision and the Importance of Vision Statements: The vision of a corporate organization represents the
level of excellence it aims to achieve. It is often perceived as a visual representation of the future. The
organization's vision acts as a guiding compass. According to Papulova (2014), a vision is a mental image
of an exciting future scenario created through creative imagination and foresight. Different businesses
may have distinct vision statements, but they should all be inspiring, challenging, and easily
understandable. These visions and vision statements should be identifiable with each organization,
starting from executives who can effectively communicate them. Vision is crucial for the success of
commercial organizations as it provides them with motivation to overcome inevitable challenges
(Papulova, 2014).

The Significance of Mission and Mission Statements: The mission of a company is what propels it
forward and aligns with its current and long-term objectives. Strategic management places great
importance on missions, which should be established prior to developing strategies. Without a mission,
an organization is likely to fail. Missions shape the expectations of the public, internal and external
stakeholders, and consumers regarding the organization's values and culture. Although mission
statements are not intended for internal employee consumption, they should be crafted with the target
market, such as customers, in mind. Their significance should not be underestimated. While there is no
one-size-fits-all approach to writing a mission statement, experts like F. David suggest incorporating
components such as clients, products and services, technology, survival skills, location, values, ethics,
and culture (Papulova, 2014).

The Significance of Strategic Management Planning for Vision and Mission: The strategic management
process necessitates the creation of vision and mission statements. These strategic objectives are
translated by managers into a tactical plan that can be executed, monitored, and assessed. The findings
of the evaluation will indicate whether adjustments need to be made to the operational strategy,
objectives, vision, and mission statement (MacDonald, 2011). The strategic plan is compared to the
overall business objectives, with the mission statement serving as a guiding principle. The mission
statement serves as a source of motivation for employees. When employees feel a sense of ownership
in the company's success, they are more likely to remain engaged and productive (Harter, 2017).

The Role of a Strong Leader in Developing Vision and Mission Statements:

The development of a vision and mission statement requires a strong leader. The leader is responsible
for guiding the organization, inspiring and motivating the workforce, and instilling a sense of purpose. A
capable leader ensures that the organization's values, objectives, and goals are reflected in the vision
and mission statements. This ensures that all stakeholders are effectively informed about the vision and
goals, fostering a shared commitment to achieving them. A strong leader also cultivates a culture of
creativity, encourages teamwork, and empowers employees to contribute to the creation and
realization of the company's vision and goals.

For a successful and effective strategic planning process, the active involvement of high-level executives
is crucial to motivate all internal and external stakeholders in contributing to the establishment of
strategies (Kennedy, 2020). When stakeholders have a better understanding of the strategic approach,
they can support the chosen strategies, targets, and activities with more enthusiasm and consistency.
This inclusive approach also encourages the emergence of innovative concepts and solutions. The
creation and implementation of mission and vision statements require the leadership of a strong leader.
It is important to continually highlight the benefits of the strategic plan and involve key stakeholders in
the implementation process. When employees and volunteers are more engaged, they are better able
to observe and embrace the changes. Additionally, involving employees in the decision-making process
helps prevent future problems by leveraging diverse perspectives (Hawthorne, 2019).

In analyzing the internal and external factors that are most relevant to a global firm's mission and vision
statements, several components are crucial for the viability of these statements, especially for
multinational corporations. However, internal influences may have a more significant impact. The
company's corporate culture plays a vital role in shaping strategic thinking. It reflects how the company
envisions the future, values its employees, upholds ethical standards, and fulfills its responsibilities to
customers, society, and the environment. By creating and sharing vision and mission statements within
the company's internal resources, strategic goals can be achieved with greater efficiency and accuracy,
aligning the organization and its stakeholders toward a common purpose.

It is essential for the organization to thoroughly examine all internal resources, including human and
financial resources, before generating mission statements. Without proper examination, even if the
strategic goals of the company are admirable and advantageous, they cannot be achieved (Kennedy,
2020). Governmental restrictions may impose limitations on the company's actions, but they cannot
dictate the desired image that the company intends to project. Furthermore, the mission statement is
not solely driven by competition, although effective competition is crucial for market success and
survival.

When developing vision and mission statements, it is important to consider that while external
stakeholders such as society and the environment hold significance, they should be secondary to
internal aspects, objectives, and responsibilities (Bain & Company, 2018). A balanced strategy that takes
into account both internal and external factors is strongly recommended. In conclusion, a strong leader
plays a vital role in guiding the creation of a company's vision and mission statements, ensuring that
they align with the organization's core principles. Both internal and external elements are important in
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shaping the vision and mission statements of a global firm, as they influence the organization's identity
and strategic direction.

Reference:

Bain & Company. (2018, August 7). Mission and Vision Statements. Bain & Company. Retrieved from

https://www.bain.com/insights/management-tools-mission-and-vision-statements/

Harter, J. (2017, April 12). The right culture: not just about employee satisfaction. Gallup.com; Gallup.

Retrieved from https://www.gallup.com/workplace/236366/right-culture-not-employee-

satisfaction.aspx

Hawthorne, M. (2019, March 25). The Purpose of Mission and Vision Statements in Strategic Planning.

Chron. Retrieved from https://smallbusiness.chron.com/purpose-mission-vision-statements-

strategic-planning-13161.html

Kennedy, R. (2020). Strategic Management. In vtechworks.lib.vt.edu. Pamplin College of Business in

association with Virginia Tech Publishing. Retrieved from

https://vtechworks.lib.vt.edu/handle/10919/99282

MacDonald, L. (2011). What Do Clear Vision & Mission Statements Contribute to the Strategic

Management Process? Chron.com. Retrieved from https://smallbusiness.chron.com/clear-

vision-mission-statements-contribute-strategic-management-process-24100.html

Papulova, Z. (2014). The Significance of Vision and Mission Development for Enterprises in Slovak

Republic. Journal of Economics, Business and Management, 2(1), 12–16. Retrieved from

https://doi.org/10.7763/joebm.2014.v2.90

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