The Essence of Vision and Mission Statements in Business (Essay Sample)

WHAT ROLE DO MISSION STATEMENTS HAVE IN ORGANIZATIONS?
By (Name)
Course
Professor’s Name
Name of the University
City (State)
Date
What Role do Mission Statements have in Organizations?
1.0 Introduction
Mission statements play an integral role in the strategic management of the business. There is probably not authorship of strategic management that fails to mention the significance of mission and vision statements. Recently, notable examples of successful business people including Steve Jobs, Bill Gates, and Henry Ford form an essential part of many books and articles that analyze the role and value of mission statements in the enterprise (Vizeu & Regina 2013). In the face of a challenging business environment, organizations use key elements of vision and mission to attain a competitive edge. Many researchers have studied the subject of this paper in a broad sense showing both consensus and divergent perspectives. Moreover, different organizations employ varying philosophical views while formulating mission statements (Leggat & Holmes 2015). There is a consensus among many experts in this field that there is not one conventional way of creating mission statements. Nevertheless, many researchers admit that mission statements should serve the purpose of strategic management in firms. The present paper explores the role and value of mission statements in the enterprise. Further, it delves into theoretical and evidence-based conceptualization and application of mission statements in enhancing organizational functions.
2.0 Literature Review
2.1 Definitions of mission statements
There are varying definitions of mission statements by different organizations. However, mostly, they define the nature, purpose, and significance of companies, notably guiding planning and directing resources (Anderson & Jamison 2015). On the one hand, some theorists hold the belief that mission statements are key drivers of strategic planning while others observe that they mirror institutional reality. Business communication experts maintain that mission statements are important communicative devices of organizations. Anitsal, Anitsal, and Girard (2013, p. 14) hold the belief that the creation of mission statements fosters communication and attachment to a common organizational goal. The process calls for negotiations among the participants regarding the implication of constituent words, phrases, and concepts (Krzyżanowska & Tkaczyk 2014). The ultimate objective of the participatory process of developing mission statements is to invest generic-sounding language with deep meaning for the community (Wright & Pandey 2011). Research shows that mission statements become effective only when the process of creating them is participatory. The exclusion of any voice attracts grave consequences in the future.
A Mission statement, according to McDonald and Sarfraz (2015, p. 77) is a vital element of strategic management that should tell members of an organization about the future of its direction. In fact, mission statements form part of one of the basic elements of strategic management called strategy formulation. As such, the crafting of the mission statement precedes the development of the plan. Researchers observe that a mission statement defines the space in which an organization creates an approach (Jha et al. 2013). It relates to both present and future directions of a firm. Without the mission statement, the organization and its people are likely to lose focus on the communicative device shapes identity, purpose, and direction of the entire firm. Castro & Lohmann (2014, p. 10) observes that mission statements provide information to stakeholders, clients, and the public about the doctrines by which the enterprise operates. Therefore, the definition of mission statements should center on its purpose, which primarily communicates to the target audience. The authors note that a flawed mission statement expresses an uninformed agenda for a firm (p.14). As a consequence, the internal and external target audience interprets wrong information leading the failure in the long-term.
2.2 The Role of Mission Statements
2.2.1 The Role of Mission Statements to Stockholders
Peter Drucker refers mission statements to as the foundation for organizational priorities, strategies, plans, and work assignments (Wang 2011). It is a valuable tool that distinguishes one organization from another. It provides the reason for its existence. The mission statements should include principal stakeholders including sponsors, customers, suppliers, institutions, and employees. Research has shown that large corporations include members in their current mission statements. One of the most critical roles of mission statements is to communicate the firm’s reason for being and values to stakeholders. Partakersform an integral part of in influencing the organizational stake in the future. Anitsal, Anitsal, and Girard (2013, p. 18) maintain that the statements should circulate widely to ensure that interested parties discuss, understand, share, and internalize them. A better understanding of the firm’s mission statement provides that each commits to the organization’s strategy and its implementation.
2.2.2 Role of Mission Statements in Strategy Development
Mission and visions of an organization create a target for policy formulation. Research in the field of strategic management reveals that its level of effectiveness measures a useful strategy in helping the firm’s efforts to realize its missions. A collective visualization can help one to identify the correlation that exists between organizational strategy and its mission statement. On one end of the plan, it provides an explicit, clear indication of what the firm intends to do to achieve the mission. Mission statements provide a bridge between a company’s vision and strategy. As such, a good mission statement creates tension and restlessness among stakeholders concerning organizational direction and purpose. Koch, Galaskiewicz, and Pierson (2015, p.510) add that it provokes a spirit of commitment and innovation for improvement. For example, research shows that competitive firms such as CNN, British Airways, and Apple Inc. displaced rivals with unmatched reputations and deeper pockets via their ambition to stretch their organizations through innovation (Babnik et al. 2014).
Research shows that mission statements received less attention in the marketing literature despite their perceived significance in the commercialization strategy of organizations (Keeling 2013). Researchers argue that aligning the content, research, and practice of mission statements from an internal to the external environment can enhance customer satisfaction. As competition escalates and consumption behaviors keep changing, mission statements should be examined and crafted in a manner to attract and retain customers (Krzyżanowska & Tkaczyk 2014). Other authors add that mission statements should serve as a valuable marketing tool if it creates and nurtures an emotional bond with their clients. As such, mission statements should focus on customer perspective as a wise way enhancing attraction and retention in a competitive market environment.
2.2.3 Mission Statements and Strategic Management
Most practitioners and academic researchers of strategic management observe that suitable mission statements often comprise several elements including customers, products, markets, technology, growth and profitability, philosophy, self-concept, public image, and employees. Strategic management is a model that involves four key components: environmental scanning, strategy formulation, strategy implementation and evaluation, and control. Candemir & Zalluhoğlu (2013, p. 628) support Peter Drucker’s assertion that developing mission and vision statements of a firm fall within policy development. Strategy formulation entails a specification of the strategic goals and objectives of a company, which often manifests in the vision and mission statements. In fact, mission statements should tell why the organization chose a particular direction (Babnik et al. 2014). In this regard, the strategic objective becomes an obligation as it speaks about positions that a firm should and results it intends to achieve.
In a constantly changing and uncertain environment, favorable conditions for the development of long-term plans and strategies are unlikely to prevail (Blythe 2014). As such, organizations need something besides strategy that provides long-term orientation and direction. Mission statements play such a role in strategic management. The development of a mission statement should include its strategic position. Research shows that most small and medium-sized enterprises do not differentiate between mission and vision statements. Some companies fail to recognize the role of mission statements in strategic management (Kirk & Beth 2010). Nonetheless, most successful large corporations acknowledge that without properly-defined mission statements, failure remains inevitable and sustainability is not guaranteed.
2.2.4 The Role of Mission Statements on Corporate Identity
Corporate identity has garnered increasing interest in recent decades. Many researchers believe that a corporate identity is an important tool that firms can use to meet today’s challenges, especially as companies seek to differentiation in the increasingly commoditized markets and the need to attract and retain qualified staff (Wright & Pandey 2011). Corporate legitimacy is a growing concern in the today’s business environment. As the way in which organizations communicate their philosophies and strategies to the internal and external publics, corporate identity manifests best when included in mission statements (David, David, & David 2014). In fact, ...