Business organisation and environment

Table of Contents

1. Topic pack - introduction
2. 1.1 Nature of business activity - notes
3. 1.1 Nature of business activity - questions
4. 1.2 Types of organisation - notes
5. 1.2 Types of organisation - questions
6. 1.3 Organisational objectives - notes
   1. Nature, role and importance of objectives
   2. Changing objectives
   3. Statements - mission and vision
   4. Short versus long-term objectives
   5. Short versus long-term objectives - a further explanation
   6. Management by objectives
   7. Ethical objectives
   8. Corporate social responsibility
7. 1.3 Organisational objectives - questions
8. 1.4 Stakeholders - notes
9. 1.4 Stakeholders - questions
10. 1.5 External environment - notes
11. 1.5 External environment - questions
12. 1.5 External environment - simulations and activities
13. 1.6 Organisational planning tools - notes
14. 1.6 Growth and evolution - notes
15. 1.7 Growth and evolution - questions
16. 1.7 Growth and evolution - simulations and activities
17. 1.6 Change (HL only) - notes
18. 1.9 Globalisation - notes
19. 1.9 Globalisation - questions
20. Print View

Statements - mission and vision

There is much confusion about these two statements, simply because there is a lack of clarity about what they concern. In practice, they may overlap or one may be a part of the other.

Many people mistake vision statement for mission statement, and sometimes one is simply used as a longer term version of the other. However, the vision statement should describe why it is important to achieve the organisation's mission, by defining its purpose or broader goal. A mission statement is more specific to what the enterprise can achieve. The vision statement may relate to broader social aims, such as the reduction of global warming, health improvements or human advancement.

The vision statement describes why it is important to achieve the firm's mission.

The mission statement

It has become popular for firms to publish 'mission statements'. They define an organisation's purpose and primary objectives, stating 'who we are and what we do'. By publishing the firm's mission statement it is believed that everybody will know what their business is and relate to its purpose. Employees should be motivated and fired up to achieve.

This only works, however, if everybody understands and relates to the mission. The mission statement acts as a whole philosophy for the firm to help give a clear statement of direction for the present and so needs to have immediate relevance. Of course, it helps if the mission corresponds to the outlook and purpose of the individuals who make up the organisation, and if they have contributed to the development of that mission. If the mission is perceived as a glib slogan, designed by the marketing team, it will have little value.

Mission statements are targeted at internal and external stakeholders. This means that the statements have to be suitable for a wide range of readers. Internally, they are meant to encourage and motivate everybody, thus they must give a target, to which the reader can relate. This is not easy, and an unsuitable statement could, arguably, do more harm than good.

The mission statement is not specific and does not usually have quantifiable targets, or measures, rather it is aimed at helping customers, employees and all other stakeholders to understand the direction and objectives of the firm. The mission statement should:

• be a concise statement of where the business is now, but also show its future direction
• provide a statement of perceived success - what the business wants to achieve in the long term, as well as now
• allow the business to use the statement for the development of specific goals and objectives to achieve their aims.
• provide inspiration to employees to achieve the aims or vision set out by the statement

The vision statement

While a mission statement is of immediate relevance to all stakeholders as it is about the present and the way in which a company wants to advance, a vision statement is a more general statement looking at where the business desires to be in the future and the values that it will take with it along the way. A vision statement is less quantifiable than a mission statement as it is a statement about what the organisation wants to become and what it wants to achieve.

The vision statement should make employees feel proud, motivated, and excited to part of something much larger than them. It should stretch the organisation's capabilities and give shape and direction to its future.

Web task

Go to the web sites of 5 major firms and find their mission statements. How do they differ? Can you find examples of corresponding vision statements?

Look at some of the mission statements of the companies profiled on Biz/ed. Try a search on the Biz/ed site using the search term 'mission statement'. You can have a go at this in the window below.

For more information on mission and vision statements, why not try the following links?

• Mindtools.com - mission and vision statements
• Wikipedia - strategic planning - mission and vision statements

Unfortunately the iconic Dilbert mission statement generator has now been discontinued, but there are a number of alternatives available such as the one from ISMS.

Alternatively, you can have a go at this in the window below and generate a few random mission statements!

Another way of generating pointless mission statements is to download a mission statement generator from the Apple apps store, if you have an iPhone or iPad. There are several free versions available.

Questions:

1. Using Coca-Cola as an example, identify two differences between a mission statement and a vision statement.
2. Explain why some critics argue that mission statements are no more than an exercise in public relations
3. Analyse the role of vision and mission statements in the operations of Coca-Cola
4. Discuss the reasons for Coca-Cola's purchase of a controlling stake in Innocent smoothies.

You may want to look at the following the following article to support your answer:

• Innocent smoothie denies sell-out after Coca-Cola gets majority stake