Premium Essay

Mission Vision and Objectives

In:

Submitted By manishkhanal
Words 5340
Pages 22
Chapter 2

Company Mission

Chapter Summary

Defining the mission statement for a company is often one of the most slighted tasks in strategic management. It is much easier for many executives to emphasize operational aspects of long-term management activities rather than making sure short-term activities are in sync with the long-term goals.

The principal value of the mission statement is its specification of the firm’s ultimate aims. A firm gains a heightened sense of purpose when its board of directors and its top executives address these issues: “What business are we in?” “What customers do we serve?” and “Why does this organization exist?” Ambiguous generalizations are not enough to address these questions. A firm must clearly articulate its long-term intentions if it expects its goals to serve as a basis for shared expectations, planning, and performance evaluation.

A mission statement that is clearly articulated can promote a sense of shared expectations among all levels and generations of employees. It consolidates values over time and across individuals and interest groups. The firm’s sense of worth and intent can be clearly identified by outside stakeholders. Lastly, it asserts the firm’s commitment to responsible action in symbiosis with the preservation and protection of the essential claims of insider stakeholders’ survival, growth, and profitability.

Learning Objectives

1. Describe a company mission and explain its value.
2. Explain why it is important for the mission statement to include the company’s basic product or service, its primary markets, and its principal technology.
3. Explain which goal of a company is most important: survival, profitability, or growth.
4. Discuss the importance of company philosophy, public image, and company self-concept to stockholders.
5. Give examples of the newest trends in mission statement

Similar Documents

Free Essay

Vision Mission Objectives Analysis

...enchanted realms of fantasy and adventure, yesterday and tomorrow, in a magical place called Disneyland. Today that spirit of imagination and discovery comes to life in Hong Kong. Hong Kong Disneyland is dedicated to the young and the young at heart - with the hope that it will be a source of joy and inspiration, and an enduring symbol of the cooperation, friendship and understanding between the people of Hong Kong and the United States of America. —Michael D. Eisner and Donald Tsang, 12 September 2005 Hong Kong adalah lokasi Disney Resort kelima di dunia. Hong Kong Disneyland bertujuan untuk mewujudkan keajaiban hiburan kelas dunia untuk semua kalangan usia. Vision Statement Hong Kong Disneyland Resort is Asia’s premier resort destination creating magical memories for our guests, cast and community. Mission Statement Hong Kong Disneyland Resort inspires happiness and delivers a world-class experience through creativity, great leadership and a passionate cast. Komponen-komponen misi: 1. Customers Hong Kong Disneyland terbuka untuk semua kalangan usia. Mulai dari anak kecil hingga usia dewasa 2. Products / Services Pada dasarnya Hong Kong Disneyland memberikan layanan berupa atraksi dan hiburan, tetapi di samping itu juga turut serta menjual berbagai macam produk, seperti makanan dan minuman serta souvenir bertemakan tokoh-tokoh Disney. 3. Market Secara geografis, Hong Kong Disneyland terletak di Penny’s Bay, Lantau Island, yaitu pulau terbesar di Hong Kong...

Words: 986 - Pages: 4

Free Essay

Topic: How Does Transformational Leadership Help to Shape the Vision Mission and Objectives of a Changing Organization?

...288- Med term paper Topic: How does transformational leadership help to shape the vision mission and objectives of a changing organization? The name transformational leadership is sometimes meant to denote the transformation of team members from a focus on individual goals to a commitment to the goals of the organization. A transformational leadership is one that does have the objective, mission and vision of the organization in mind. A transformational leader is effective because she/he is visibly undergoing his/her own transformation. Leadership as this take full responsibility for their self. They recognize they are imperfect and will make mistakes-this person can forgive him/herself and is free from any burden of guilt or shame. Transformational Leader accepts the humanity of others, that even when people try their hardest they will also make mistakes. This leadership has no interest in blaming or personal judgment. Transformational Leadership provides such positive examples they do not have to look for followers or persuade others, followers find them because they can learn from them. When you have a transformational leadership setting then the organization objective, vision and mission is the starting point of managerial actions. Mission statement defines the organization’s purpose and primary objectives. Mission statement, vision and objectives are the starting points of an organization strategic planning and goal setting process. The strategic...

Words: 844 - Pages: 4

Premium Essay

Define and Then Distinguish Training from Employee Development. Criticallydiscuss the Relevance of Training to the Achievement of the Organisation’s Objectives, Vision and Mission.

...------------------------------------------------- Define and then distinguish training from employee development. Criticallydiscuss the relevance of training to the achievement of the organisation’s objectives, vision and mission. Training is a deeply embedded function of human resource managements, one of the steps taken with the view of having the right people, with the right skills in the right job. Instilling necessary knowledge, skills and abilities to allow efficiency and effectiveness in the firm’s operations.Training typically defined as the transferal of knowledge, skills and abilities. Training as opposed to development is perused in a fashion where mainly entry or middle management employees are taught primary skills a limited scope usually in an ad-hoc fashion. While development (Beardwell, Holden, and Claydon) plays a role of perfecting the skills, its transformative and transformative form of training, a continuous process usually reserved for higher level management. Secondary skills, focuses on changing attitudes and perspective on management issues. Training implements motor and physical skills and abilities and has been described as a basic level of development. The link between an organisation’s goals and the level of training or development has been watch and heavily discussed in many modern pieces of research, most seeing a positive correlation (Huselid 1995,Mathis|Jackson 2010,Beardwell et al 2003,). With many knowledge based jobs driving the economy...

Words: 652 - Pages: 3

Premium Essay

Crafting and Executing Management Strategy

...Enid K Bukambu Dr. Muscia Strategic MAnagement 01/17/2013 An argument supporting the importance of a strategic plan for the success of the defined business Strategic planning is critical to business success. Different from classic business planning, the strategic variety involves vision, mission and outside-of-the-box thinking. Strategic planning describes where you want your company to go, not necessarily how you're going to get there. However, like all other travel plans, without knowing where you want to go, creating details on how to arrive are meaningless. Strategic planning defines the "where" that your company is heading. Often confused with business operation plans, strategic plans are expressions of ownership dreams and visions of successful results (Pirraglia, 2012). The strategic plan displays the finished product or goal. Usually, in smaller businesses, strategic planning is focused on the overall company, not on a department or division (pirraglia, 2012). Envisioning goals and then defining strategies you'll embrace to achieve your objectives is the essence of strategic planning. Easy to overlook in a smaller business, strategic thinking identifies the methods you will take to reach your goals. For example, if you believe you must expand your e-commerce function to achieve increased sales volume, you've also identified the method to use your strategy and reach company goals. Save the specific steps and components for your business plan. By selecting the...

Words: 1257 - Pages: 6

Premium Essay

Achieving Strategic Objectives

...organizations towards developing strategic plans. Vision and mission statements are the cornerstone of a successful strategic plan. An organization vision statement may describe desirable and possible future state or long term aims of a company and is also a backdrop of a purpose and company’s strategy, itaffects key priorities and behavioral standards in a company(Dermol, 2012). Vision is viewed as a mental picture of a compelling future situation. It originates from creative imagination, the act or power of perceiving imaginative mental images, sort of foresightedness (Joachim, 2010). A clear and realistic vision will lead organizations towards success; it is the basis for right strategies and key priorities.The vision statement is an institution’s clear description of what it intends to become within a certain timeframe. The vision statement defines the institution’s strategic position in the future and the specific elements of that position with relationship to the mission statement, vision statements benefit the planning process by providing everyone in the institution with the same vision of the future. (Hinton, 2012) In the other hand, mission statement represents a more specific description of what an organization is seeking to achieve and how it will achieve. It also represents the organization's internal and external values. Developing a clear mission statement is a very important part in strategic planning.The mission should emphasize the main focus of the company...

Words: 800 - Pages: 4

Premium Essay

Mission and Vision of Companies

...Introduction: Vision and mission statements play an important role in strategy development by providing vehicles to generate and screen strategic options. They also provide organizational identity and understanding of business directions. A vision is an attempt to articulate what a desired future for a company would look like. It gives the company direction and it's the basic premise for the success of the mission statement. It stretches the imagination and motivates people to rethink what is possible. A mission statement is a brief explanation of the organization's purpose. It tells who we are and what we are. Mission statements should articulate the principles that will guide the business and its employees to grow, advance, and prosper. Definition of Mission and Vision statement: A mission statement, or simply a mission, is a public declaration that schools or other educational organizations use to describe their founding purpose and major organizational commitments—i.e., what they do and why they do it. A mission statement may describe a school’s day-to-day operational objectives, its instructional values, or its public commitments to its students and community. Figure 1.1: Image of Mission and Vision A vision statement, or simply a vision, is a public declaration that schools or other educational organizations use to describe their high-level goals for the future—what they hope to achieve if they successfully fulfill their organizational purpose or mission. A vision statement...

Words: 2130 - Pages: 9

Premium Essay

Bus599 Assignment 1

...Assignment 1: Crafting and Executing Strategy BUS 599 – Strategic Management Strayer University October 20, 2013 Table of Contents Introduction 3 Mission Statement 3 Vision Statement 4 Key Objectives 5 Conclusion 5 Reference 6 Introduction The business world today is a complex network of companies who have similar goals and objectives in mind, primarily to make money for its owners and shareholders. In order to accomplish this, management is required to use various tools at their disposal, such as a mission statement, a vision statement, and strategies that provide the organization with direction as well as purpose. The aim of this paper is to discuss each of these tools and explain how a company can utilize them to establish a foothold in their perspective markets. For this exercise, the company that will be used will be the fictional company, Ross Technologies, which provides IT services to other businesses. This paper will present a mission statement, a vision statement, and key objectives for the company to follow to help ensure success. Ross Technologies is a company that offers high level IT services and provides its customers with services ranging from network implementation to developing and executing technical strategies to help them along in their prospective markets. It has been in operations for more than ten years and has a unique organizational culture. The company is traded on the New York Stock Exchange and employees 500 people....

Words: 981 - Pages: 4

Premium Essay

Developing a Strategy

...development of a strategic vision, mission and values, setting objectives, crafting a strategy to achieve the objectives, executing the strategy and evaluating the outcomes. I will look at how each section is inter-related and why it is important for a company to manage this process. Developing a strategy to gain sustainable competitive advantage and ultimately grow profits is fundamental to achieving success for a company. Without it, a company has no road map to follow when pursuing opportunities and running daily operations, the consequences of which can be severe. The first step in developing a strategic plan is to outline the company’s vision (why we exist), mission (what we want to be) and goals (what we must achieve for success). The mission provides a road map showing the route a company intends to take to develop and strengthen in business. It paints a picture and describes the company’s rationale for going there. While the vision statement will outline an image of what success looks like and the mission statement will identify the firm’s product or service. It also clarifies the firms business to stakeholders as well as setting it apart from its rivals. Outlining the company’s goals is a general statement of achievement. Communicating the vision, mission and goals of the organisation is very important. The most important component of any organisation is its personnel. A company needs to ensure its employees understand its vision, mission and goals in order to...

Words: 1015 - Pages: 5

Free Essay

How to Start Ngo in Ghana

...essential to setting up an NGO in Ghana. The first two are generic steps for anywhere in the world. The final three steps are for Ghana, specifically. Feel free to share this document with anyone who may be starting their own NGO anywhere. 1. 2. 3. 4. 5. Develop Your Vision and Mission Develop Goals and Objectives Set up a Board of Directors Draft a Constitution Register the Organization in Ghana 1. Develop Your Vision and Mission You need a compelling vision and genuine commitment to that vision for the long-term. If you do things right you will go MaD (making a difference) in a way that fully benefits your target communities. Vision and Mission will explain your organization’s existence and focus its activities. And, this will “sell” your NGO to the world. Writing a vision and mission is like crafting an elevator pitch: make it short, clear and a little intriguing. But let’s look at the difference between vision and mission first. By Godwin Yidana and Gayle Pescud www.g-lish.org Authors of the Insider’s Travel & Living Guide to Ghana Insider’s Volunteering Guide to Ghana How to Start an NGO or Non-Profit in Ghana 2 Vision Your NGO’s vision is what the community would be if the problem is solved. A vision is the "ideal situation" that you hope to achieve. At the most...

Words: 3659 - Pages: 15

Premium Essay

Vision

...Developed Vision Mission and Objectives In our assignment, we selected HB Eramanis appuhami retail shop to develop retailing strategies, some strategies are not used their businesses, we think they don’t think about their future. They want to continue their daily works and manage business. They all ways try to give new stationary for their customers soon than competitors. We see they try to get a best image about H B Eramanis appuhami and sons from customers using their business and try to make a good relationship with customers. Our group could identify H B Eramanis appuhami and sons have same targets. They want to complete that immediately. They say they want to upgrade their space from build 1st floor also they want to start books selling like novels short stories. For that they should want some space in retail shop. H B Eramanis appuhami and sons are not developed vision statement, mission statement also they didn’t identify their objectives. But they have some idea about their targets. Our group discussed with manager and we can get some idea about vision mission and objectives. In here we developed their vision mission and objectives using their ideas. Simply Vision can identify the dream can be reality in an organization or it is a state of a company hope to reach in the future. Mission is can define it is a presentation about main task widely in organization differently from other organizations. Objectives is Connect with short term period aims.. According to their...

Words: 373 - Pages: 2

Free Essay

Vmosa

... Like everyone else, community organizers often dream about goals they would like to accomplish, such as an end to drug abuse; every child being wanted, cared for, and nurtured; a home for everyone; peace in our lifetime. These are just a few of many people's visions for our community. Unfortunately, like many individual dreams, we think these objectives are too lofty and unattainable to ever be realized. But, in fact, realizing these dreams is possible. Look, for example, at our global success in eradicating small pox, or how far we have come since the 1950s in the United States towards reaching racial and gender equality. As Henry David Thoreau said over a century ago, "If you have built castles in the air, your work need not be lost; there is where they should be. Now, put foundations under them." Building foundations for your community dreams is what VMOSA, the strategic planning process that is the focus of this chapter, is all about. It's about groups of people deciding together what they want to accomplish, and how they are going to get there. What is VMOSA? One way to make that journey is through strategic planning, the process by which a group defines its own "VMOSA;" that is, its Vision, Mission, Objectives, Strategies, and Action Plans. VMOSA is a practical planning process that can be used by any community organization or initiative. This comprehensive planning tool can help your organization by providing a blueprint for moving from dreams to actions to positive...

Words: 15343 - Pages: 62

Free Essay

Three Important Parts in Defining the Strategic Direction of a Company.

...Three important parts in defining the strategic direction of a company. The mission, vision and values of a company are important to determine the strategic direction for the company’s future business operations. The mission is a guide and reminder to the shareholders and stakeholders of the company’s goals and objectives. The vision is the optimistic views and goals of what the company plans to become in the future. The values of the company are the attitudes, beliefs, perceptions, and views that will help the company to accomplish their mission and vision. Culture, social responsibility, and ethics are very important factors in influencing the company’s values. Customer needs are an important factor for a business to evaluate and implement into strategic business decisions. Companies need to create a competitive advantage over other companies for their products and services to compete in the markets. Companies should define, analyze, and evaluate each of these major factors to define the strategic direction the company wants to move in. Each factor will represent new goals and achievements for a company to pursue along their journey of making their vision come true. The purpose of the mission statement. The statement will be a constant reminder to the employees of the company that they are working to obtain the goals of the clients and not their own personal agendas. The mission of the company sets the strategic direction the company wants to follow. Clients are what...

Words: 1064 - Pages: 5

Premium Essay

Hello

...CHAPTER 2 The Business Vision and Mission True/False Introduction 1. Vision and mission statements can often be found in the front of annual reports. Ans: T Page: 56 2. Although it is important for companies to have a clearly defined mission statement, research has shown that less than 50% of all companies have used a mission statement in the previous five years. Ans: F Page: 56 What Do We Want To Become? 3. The foundation for development of a comprehensive mission statement is provided by a clear vision. Ans: T Page: 56 4. The mission statement should be short—preferably one sentence. Ans: F Page: 56 5. When developing a vision statement, input should be received from as many managers as possible. Ans: T Page: 56 6. If an organization chooses to have both a mission and a vision, the mission statement should be established first. Ans: F Page: 56 What Is Our Business? 7. According to Peter Drucker, asking the question “What is our business?” is synonymous with asking the question “What is our vision?” Ans: F Page: 59 8. A declaration of an organization’s “reason for being” is the mission statement. Ans: T Page: 59 9. A mission statement, sometimes called a creed statement, can be defined as an “enduring statement of purpose that distinguishes one organization from other similar enterprises...

Words: 4016 - Pages: 17

Premium Essay

Mission and Vision Statement

...MISSION AND VISION STATEMENTS A vision statement is what companies do to give a full idea of what they want for the company or what direction the company is targeting. It’s a clear structure of what the company wants and why they want what they want. A vision statement is when a company set long term or short term goals. Vision statement is for a company to achieve and accomplish the desired targets of the business. A good vision statement provides structure for the daily operation of the company. The two must important part of a vision statement is what the company wants for the future and it must have excitement and motivation. "Use the company culture description for more details on the goals and direction of the business." Vision statements are future-based and are meant to give inspiration and direction to the employees of the company, not anyone outside the company. Vision statements are formal and can change over time. As a company grows, its objectives and goals most likely will change. Vision statements need to be restructured as needed to compliment the change as goals are on target and met. A couple of questions you might need to ask yourself when writing your vision statement includes the following, what problem does your company want to solve? What does your company wish to achieve? Who is your target consumer, and what do you want to do for them business wise? Vision statements should provide a sense of direction and enlarge...

Words: 757 - Pages: 4

Premium Essay

Swswq

...Organisation's vision is an attempt to establish an ideal future ,rather than to provide a challenging but strict guide for management decision-making.A definition of Vision in a dictionary: “An image of the future we seek to create.”. A vision statement describes in graphic terms where the goal-setters want to see themselves in the future.It may describe how they see events unfolding over 10 or 20 years if everything goes exactly as hoped. -Tai Hing Catering vision : To be the best producer and most customer recommended diet group. A definition of Mission in a dictionary: purpose, reason for being ; also, an inner calling to pursue an activity or perform a service. The Vision describes a future identity and the Mission describes how it will be achieved. A Mission statement may define the purpose or broader goal for being in existence or in the bussiness. It serves as an ongoing guide without time frame .The mission can remain the same for decade if crafted well. Vision is more specific in terms of objective and future state. Vision is related to some form of achievement if successful. For example, “ We help transport goods and people efficiently and cost effectively without damaging environment “ is a mission statement. Ford's brief but powerful slogan” Quality is Job 1” could count as a mission statement."We will be one amongst the top three transporters of goods and people in North America by2010" is a vision statement. It is very concrete and unambiguous goal. An objective is what...

Words: 489 - Pages: 2