Question

How does a corporation determine what direction they will take in the marketplace? The first three elements of setting this direction are Mission Vision and Value Statements. What do these mean? How do they impact decision-making at a corporation?

Answer 1

To determine the direction that corporate will take in the marketplace here are the factors which are involved in the process:

• Envisioning the future of the organisation which involves the process of defining vision - long-term goals for the team.
• Once the vision is defined it is important to link it with current reality and market situation - hence this process involves setting strategic goals for the organisation.
• For short-term plan execution, the firm then defines various tactics to use the present strength and resources to achieve optimum results.
• The market research is an important element for defining the direction in the marketplace. It involves a lot of industry information and understanding of various trends & technologies existing in the market.
• Consumer and competitor understanding, study and analysis are also important elements to define the direction in the marketplace. It helps to understand the value of a product, existing challenges and future potential.

Part B)

1. The vision: It is the long-term aspirational goal of the organisation. It is a broad description of the organisational outcomes which a firm strives to achieve and become in future. It helps to bring inspiration, motivation and passion in the organisation culture. The most important factor is that the vision should be short, concise and understood by the entire organisation.
2. The mission: The vision defined the future and the mission helps to understand what must be done in current reality to achieve the vision in future. It is more specific and helps to lay down factors that will help differentiate the firm from its competitors. It helps to make various stakeholders understand what the company is planning to achieve and build trust. It helps to make understand the value and impact the firm is trying to create for the society.
3. Value Statements: are also knows as the code of ethics and discipline which will be followed by the firm. It helps to define the values the organisation believes and also sets benchmarks, standards and acceptable behavior attributes for its team members. It helps to define the ethical and moral framework of the company while dealing with various stakeholders.

Part C)

They (Vision, mission and value statement) impact the decision making as they help to understand the future, current reality and the framework an organisation has to follow. It provides an understanding of what future an organisation aspires to achieve to guide the decision making in the present.

It also impacts the decision making on a daily basis as the firm has to ensure that all decision are made within the boundaries of ethics and morals defined by the organisation.

-------------------------------------------------------------------------------------