BBA 4951 Unit II Essay

BBA 4951 Unit II Essay

Columbia Southern University

Introduction

Within business, the creation of both the organizations mission and vision statements is considered to be one of the first steps within the strategic planning process. Mission and vision statements are core objectives that businesses put down in writing and follow as a means of guidance and to ensure that the organization remains on the right track to achieving its goals. According to David and David (2017), an organizations vision statement is simply a very short; usually one sentence, statement that answers the question “what do we want to become?” A vision statement should convey a larger sense of organizational purpose while also being both inspirational and guiding, providing a description of the organization as it wishes to be in the future, stated in the present tense. A vision that is both clear and compelling is one that allows for all members and stakeholders of an organization to fully understand it and creates a desire to achieve it. Additionally, a clear vision provides a foundation for the creation of a comprehensive mission statement. A mission statement provides the guidance required to achieve the vision and includes the organizations core purpose, values and beliefs, culture, primary business, and its customers (Kloppenborg, 2015). David and David (2017, p. 42) define a mission statement as “an enduring statement of purpose that distinguishes one organization from other similar enterprises.” A mission statement allows an organization to define its reason for being and provides outside entities an answer to what the business actually is (David & David, 2017). Finally, the ideal mission statement should consist of both a short and concise, outwardly focused statement and also a more detailed, internally concentrated business definition which describes the work to be done and creates enthusiasm for the impact of the work accomplished by an organization (Engel, 2018). Home Depot and General Electric (GE) are two very large and very successful Fortune 500 companies. While both of these organizations operate within separate industries and sectors and are generally not competitors, each uses well crafted mission and vision statements as a means of defining their purpose for being and describing how they accomplish their respective visions.

Vision Statements

There is much value provided within a well written vision statement, chief of which is that a vision statement aims to make sure that all employees and managers within an organization understand the businesses purpose and reason for existing (David & David, 2017). Established in 1978 and operating as the leading home improvement retail chain in the United States, Home Depot operates using two primary vision statements, one based upon the purpose established by the original founder and one adapted and updated to match the company’s growth over the years (Ferguson, 2017). The two visions established and adapted by Home Depot are: “to provide one-stop shopping for the do-it-yourselfer” and “to create a company that would keep alive the values that were important to us. Values like respect among all people, excellent customer service and giving back to communities and society” (Ferguson, 2017, n.p.). Home Depot’s vision statement includes multiple key factors the both define the business as it is today and provides principles that can be carried into the future. It establishes whom the company exists for and why as a one stop shop for the independent handyman, carrying an array of home improvement products. Finally the vision of Home Depot drives home the company’s belief in its core values of respect, providing excellent customer service, and giving back to the world around them. All of these factors considered, Home Depot’s vision is a short, but comprehensive one that incorporates information concerning the purpose of the company, its target market, its value and culture, and finally its sense of corporate social responsibility (Ferguson, 2017).

General Electric is one of the largest conglomerates in the world and is a leader within several industries including energy, aviation and aerospace, and the healthcare industry (Thompson, 2017). The vision statement set forth by General Electric Company is “to become the world’s premier digital industrial company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive” (Thompson, 2017, n.p.). General Electric’s vision statement is designed to establish the company as a leader at the forefront of industrial progress. It provides clear direction to both customers and employees on why the organization exists and how the company aims to remain a technological leader within multiple industries focused on providing solutions to its customers. General Electric has established a vision that looks to the future while maintaining the organizations purpose for today. GE’s vision incorporates three notable elements: to become the worlds premier digital industrial company, to transform various industries using software defined machines and solutions that are connected, responsive, and predictive, and finally to provide and execute critical outcomes for a diverse group of customers spanning numerous industries (Thompson, 2017).

Mission Statements

Mission statements provide value to companies in providing a basis for organizing work procedures, separate departments, activities, and segments around a common purpose of achieving and carrying out the vision (David & David, 2017). The mission statement of Home Depot is “to provide the highest level of service, the broadest selection of products and the most competitive prices” (Ferguson, 2017, n.p.). Home Depot’s mission statement establishes very clear intentions of the company in how it proposes to carry out its vision, and both employees and customers can easily understand these intentions. Home Depot’s mission statement helps to identify the strategies and activities used by the company in business development and incorporates three key elements of high quality of service, broad product selection, and low prices. Based on these three elements, broad product selection helps to carry out the company’s vision as a one-stop shop, while the aspects of quality service and competitive pricing aid in attracting customers to their stores. Home Depot has done a great job of incorporating all of the main strategic goals of service, goods, and pricing into its mission statement, in turn generating enthusiasm and providing guidance for the work that the company accomplishes (Ferguson, 2017).

The mission of General Electric Company is “to invent the next industrial era, to build, move, power and cure the world” (Thompson, 2017, n.p.). General Electric uses a very precise and direct mission statement as a means of defining how the organization wishes to advance and continue to evolve in an effort to build and improve upon the technologies of the world. As a company’s mission statement ideally incorporates the types of strategies that the business employs or will employ, GE’s mission statement does just that in describing how the company has and will continue to be a major influencer within industrial development. GE’s mission statement is comprised of two elements: to invent the next industrial era and to build, move, power and cure the world. The first element of its mission statement provides guidance as to what the company generally does in terms of its main business activity while the second component provides a basis for what GE aims to achieve in starting the next industrial era (Thompson, 2017).

Mission Statements and High Performers

I do believe that organizations that have comprehensive mission statements tend to be higher performers. In my opinion, a comprehensive mission statement does not necessarily mean a long, drawn out mission statement, it is one that clearly supports how a company intends to achieve its vision. High performing companies have mission statements that address what they do, how they do it, who they do it for, and the value that a particular product or service brings to their customers. Successful companies tend to be ones who have taken the time to establish their goals and ideas throughout their planning. Therefore, organizations that have taken the time to create comprehensive mission statements are better suited to achieve success by providing employees and other stakeholders with the information required to make decisions and to carry out operations. David and David (2017, p. 45) explain that “there is a small positive relationship between mission statements and measures of financial organizational performance.” As managers typically see customer service as a valuable intangible asset that can lead to increased customer loyalty and translate into customers seeking out, using and promoting their products, it can be seen how mission statements that are comprehensive and designed for quality customer care can lead to increased organizational performance (David & David, 2017).

Mission Statement Design

Mission statements should not include monetary amounts, numbers, percentages, ratios, goals, or objectives. This is due to the fact that mission statements should be designed in such a way that they are broad in scope with just enough specificity and are not too lengthy (David & David, 2017). Not including these elements into a mission statement allows for the “generation and consideration of a range of feasible alternative objectives and strategies without unduly stifling management creativity” and “excess specificity would limit the potential of creative growth for the organization” (David & David, 2017, p. 46).

Conclusion

As every organization exists for different reasons and each has a different purpose, crafting well thought out and unique mission and vision statements offers organizations a chance to establish themselves as who and what they are, why they exist, what they do, and who they do it for. Mission and vision statements are the first step within the strategic planning process and provide direction for employees and the organization throughout the entire planning process. A well-crafted vision statement describes an organization for what it can be and what it aims to be in the future while also providing a foundation for the development of a comprehensive mission statement. A good mission statement identifies an organizations customers; products and services; markets; technology, growth, and profitability among a host of other elements (David & David, 2017). Mission and vision statements are essential to any organization in establishing and achieving their objectives and carrying out ideas. Home Depot and General Electric are two examples of very large, successful organizations that have crafted and utilize well-suited mission and visions statements as a means of guiding their business.

References:

David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts and cases (16th ed.) [VitalSource Bookshelf version]. Retrieved from https://online.vitalsource.com/#/books/9780134167947

Engel, M. L. (2018). Crafting the Ideal Mission Statement for Your Organization. Leader to Leader2018(87), 7–12. https://doi-org.libraryresources.columbiasouthern.edu/10.1002/ltl.20336

Ferguson, E. (2017, February 3). Home Depot’s Vision Statement & Mission Statement. Retrieved from http://panmore.com/home-depot-vision-statement-mission-statement

Kloppenborg, T.J. (2015). Contemporary project management (3rd ed.). Stamford, CT: Cengage Learning.

Thompson, A. (2017, October 20). General Electric’s (GE) Vision Statement and Mission Statement. Retrieved from http://panmore.com/general-electric-ge-vision-statement-mission-statement

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