Case Scenario:
Strategic Management (SM) is the process of determining how an organization should proceed within the marketplace. Every organization must have a strategy implemented if they desire to maintain a competitive advantage in the corporate infrastructure. SM is a formulation of process development techniques that provide a basis for conscious strategic thinking and effective decision making practices. SM integrates the initial framework of an organizations vision, mission, values, goals, objectives, roles and responsibilities.
Mission and vision statement is used as a guideline that identifies the company's current positioning in the marketplace and to establish where the company hopes to end up in the future. The role of M&V statements is to explain an organization's direction and purpose. The mission and vision statement is a brief synopsis of their promise of their obligation of service to stakeholders, consumers, employees, corporate executives, etc.
What is the difference between mission and vision statements?
"A Mission Statement is a declaration as to why an organization exists and defines the business the organization is currently in. Mission Statements concentrate on the present and are a reflection of an organization's core competencies - the basic skills or products provided." (Midgett, 2010).
"The mission statement is primarily focused on how you will reach the main objective. The mission statement of an organization is normally short, to the point, and contains the following elements:
- Provides a concise statement of why the organization exists, and what it is to achieve;
- States the purpose and identity of the organization;
- Defines the institution's values and philosophy; and
- Describes how the organization will serve those affected by its work. (Purdue University, 2010).
"A Vision Statement focuses on the future. It states what you want the organization to be. Vision Statements come from the heart as well as the head. A Vision Statement represents a realistic dream for an organization and forces it to take a stand for a preferred future." (Midgett, 2010). A vision statement is more broad and future oriented-aiming towards achieving the main objective. A vision statement clearly defines the firm's "reason" for being in business:
- Should significantly stretch the resources and capabilities of the farm
- Should inspire people in the organization to achieve things they never thought possible
- Should unite people in the organization toward the pursuit of one common goal." (Purdue University, 2010)
Can an organization have a successful strategic plan without effective mission and vision statements? Why or why not?
An organization cannot be successful without an effective mission and vision statement (M&V). Many small businesses in the past that failed to implement an effective mission and vision statement and are currently out of business. A M&V is a foundational framework that is significant to ones overall business plan.