vision and mission statements Flashcards
(20 cards)
What is vision statement
a description of what the business sets out to achieve in the medium and long term providing clear guidance to senior managment of future direction of business and help set out strategic decision making across busienss
Who are vision statements relevant to along with the aims and objectives of
internal stakeholders
Who is the mission statement usually directed towards
internal and external stakeholders
What is a mission statement
broad statement of aims and values for guide to everyday operations and decision making in business
Difference between ms and vs
mission focused on what business wants to do in present
vision focused on future
Main purpose of mission statement
give organisation cohesiveness so everyone in firm from ceo to worker on shop floor has a set of common aims knowing what organisation stands for and what it intends to achieve similar as both vs and ms used internally but ms also used to communicate to outside stakeholders
Why us mission statement crucial im strategic planning
foundation of overall strategy and then be followed through into the development of more functional strategies
clear statement of purpose communicated to external stakeholders
Example of ms and vs
ms-is to be our customer’s favourite place and way to eat and drink
vs-
What is vision statement focused on
what a business wants to achive in the future making it clearer to achieve the vision by setting out aims such as achieve shareholder value and growth
Why are business aims more alligned to vision statement
as they are more focused on the future and written internal purposes
Whats a critic of mission statements
they are written as a public relations exercise for marketing purposes to external stakeholders rather than meaningful and purposeful statement for internal stakeholders
What is business objectives
specific measureable targets that a business will set out to achieve its aims and usually short-medium term on timescale(increases sales rev or sales targets) to achieve aim
What is a business aim
broad statements of intent, objectives and more specific statements of intent
What caragories can aims be sorted into
survival- especially in times of economic recovery
profit maximisation
sales maximisation
growth-reinventing profits, increasing market share
increase shareholder value
coorprate social, ethical , environmental responsibility
What are smart objectives
specific-clear and understood by all stakeholders
measurable- measured to ensure its achieved
achievable- and obtainable? as unrealistic will be demotivating
Realistic-likely to achieve with resources available
time limited or constrained-time scale for achieving the objectives
Examples of smart objectives
market share- achieve 40% ms from out current 35% within three years
branding- make our product the preferred brand of 15-25 year old males within three years branding
Benefits of smart objectives
-focus attention and gain commitment from all levels of busienss to agreed performance targets
-encourage teamwork and direct resources to where most effective
-check wether objective is well formulated
Benefits of setting ms vs and setting objectives
-clear vision gives clear identity and ethos
-help set objectives and support business strategy
-commit resources to achieve vision, mission and objectives
-all stakeholders are clear of purpose if busiess to focus on achieving same objectives
-customers understand ethics and objectives
Mission statements downsides
-vague and express ambition rather than reality so try to achieve ambition over set period
- not normally smart so lack substance and value and may be difficult to interprate for stakeholders
-not simply a virtuous wish that is stated and forgotten about
Evalution themes for ms
-compare new and old
- may be better to have one that is more specific and measurable to give clear focus
-only useful if busines affirms its commitment to it and makes decisions daily based on it
