Vision and Mission Statement Development

University of The People

BUS 5117: Strategic Decision Making and Management

Professor: Karl Thompson

April 16, 2021

Vision and mission; essential elements of strategic management or simple tools for clever

marketing? The importance of vision and mission statements can be seen in most if not all

strategic management books according to Papulova (2014). Large, international, and successful

corporations always have a mission and vision statement. Corporations which are definitive

examples of growth and profitability such as Apple, Google, Microsoft, Ford, and Amazon are

no exception to this rule. To some the mission statement and vision statement are mere formal

documents that are needed as a part of business operations. To others, these statements are key

components of strategy and are the first steps to understanding the future of the company.

Vision describes what the organization hopes to become in the future (Ketchen & Short,

2012). Vision statements that are well-crafted can clearly and concisely articulate the main

aspirations of a firm. A mission statement on the other hand, gives the organization reason. The

mission of a company defines the “who” and “why” the organization was created in the first

place. These two statements provide the answer to who the organization is, who they serve, what

they hope to achieve, and reasons why their goals are important to the company itself, their

partners, customers, and the world.

There are many methods to approach the formulation of a mission statement and a vision

statement. Some enterprises do not even have these statements, some firms treat the two as one

in the same, and others have unclear or poorly defined statements. The styles to draft these

statements range widely and the theoretical views on the topic are just as broad (Papulova,

2014).
Key Concepts

The strategic management process can be described using a four element model. The

process involves these basic steps: environmental scanning, strategy formulation, strategy

implementation and evaluation and control (Wheelen & Hunger, 1989). The development of the

vision and mission fits into the strategic management process at the strategy formulation phase.

According to Papulova (2014), strategy formulation involves defining the vision and mission, as

well as specification of strategic objectives and development of the comprehensive strategy.

The vision and mission of a company will drive it towards a specific strategy (Papulova,

2014). It is important to differentiate between the strategic objective, and the vision/mission

statements. Strategic objectives are similar to goals or achievements. Positions to take and

desired results can be derived from strategic objectives (Papulova, 2014). The vision and mission

statement on the other hand are closer to values and ideal futures. These provide direction in the

long-term.

“Vision is a picture of the future that is based on ideas outrunning present time and that

often motivates generations of managers,” (Papulova, 2014). The vision creation guides the

business entity and drives the company forward into a compelling future. It is essential in the

success of a company as the vision is the company’s definition of success. The vision should be

adopted by the company and its employees. Managers and leaders must be able to internalize the

vision and effectively communicate and make decisions based on the collective mental image.

For this reason, a vision statement is recommended to be simple so that it is easy to understand

and remember, positive, motivational, attractive, challenging, and future-oriented according to

Papulova (2014).
 The mission statement is a precursor to the development of company strategy. This is

because the mission of a firm defines the space in which strategy can be generated (Papulova,

2014). Similarly to how vision defines the company’s version of success. The difference here is

that mission touches both present and future while vision extends to the far future. As stated

earlier, the mission seeks to answer why an organization exists; it describes the reason for which

an organization operates. Therefore, it can be said that an organization’s mission shapes its

identity, purpose, and direction (Papulova, 2014). A mission gives direction to both internal and

external stakeholders and can show the fundamental principles, values, and philosophies to the

public.

The Role of Leadership

Leadership is the driving force of a company. It is from their minds and voices in which

direction and goals spring forth. The role of leadership in the formulation of the vision and

mission statements is both the role of dreamer and facilitator. The visionaries of a company are

often the founders of the organization (Papulova, 2014). These individuals have the passion and

power to lead entire corporations towards the actualization of the vision. As facilitators, leaders

carry on the messages of the vision and mission in order to spread them throughout all levels of

the company. Executives, upper management, project leads, and other figures of authority hold

the responsibility of deeply internalizing the mission of the company in order to carry on that

message while leading other staff towards the envisioned future.

Many factors affect the formulation of the vision and mission statements. These factors

can be generalized into two forms, internal factors and external factors. The internal factors are

characteristics of the organization such as company culture, philosophies, employees, and

resources. While external factors are concerns that lie outside of the organization. These factors

can relate to supply chain, government regulations, other firms in direct competition with the

company, and other third parties such as customers and suppliers.

The factors that most affect the vision and mission statements are internal factors. The

values within the visionary present themselves in the formulation of the vision statement. The

purpose of these statements is to present the core of the company to the public eye. While some

mission statements are customer centric as in the case of Amazon, it can be argued that

prioritizing customers, the customer experience, and supply chain efficiency stems from the

philosophy of reliability and convenience that Jeff Bezos internalized. Internal factors are the

most relevant when discussing vision and mission statements as they express what the company

holds most important and its motivation to accomplish these goals. Analyze whether internal

(company culture, firm’s resources, etc.) or external (government regulations, competition, etc.)

are the most relevant to a global firm’s vision and mission statements

Conclusion

The importance of a vision and mission statement is still heavily debated in the business

world. Some firms swear by them and others just use them for marketing strength. However, it is

a fact that the biggest corporations utilize the vision and mission as tools for strategic
management. The vision statement provides the firm with a clear direction for the future while

the mission solidifies the mindset and actions a firm will take to reach their goals.
References

Ketchen, D & Short, J. (2012). Strategic Management: Evaluation and Execution. This book is

licensed under a Creative Commons by-nc-sa 3.0 license.

Papulova, Z. (2014). The significance of vision and mission development for enterprises in

Slovak Republic. Journal of Economics, Business and Management, (2)1. Retrieved July

23, 2015 from: http://www.joebm.com/papers/90-A00009.pdf

Wheelen, T.L & Hunger, J. D. (1989). Strategic Management and Business Policy 3rd ed. MA:

Addison-Wesley Publishing Company.