Question

What are vision and mission statements? What is their value for the strategic management process? Select an example of strong Vision/Mission (cite your source). What are its positive characteristics?

Answer 1

A misson statement is a statement of the objectives of a business and the objectives it wants to acheive and the means it wants to use to acheive those business objectives.

The mission statement has close relationship with the overall business strategy and aligns with the company strategy to become a product differentiator or a cost leader in its segment.

The vision statement is a statement of the company's desire to transform and become an entity that is specified in the vision statement.

The vision and mission statements provide a framework and an overall umbrella under which the company's strategy can be formulated and the company can orient its business processes to become more competitive and achieve the desired future state.

An example of a strong Vision & Mission statement statement can be found from Tata Steel's vision statement which talks about Tata Steel becoming a global benchmark for value creation and corprate citizenship.

Thus it clearly lays down a fuure state which is aspirational and achievable and thus sets a target for the employees to work towards and achieve. Being a succint and inspirational, this has the potential to bind the employees and motivate them by aligning their efforts in the same direction.