COMPARING TWO MISSION AND VISION STATEMENTS 5
Comparingtwo mission and vision statements
Everysuccessful company has a mission and vision statement, to keep itsemployees focused on achieving the stated objectives and in the rightway. According to David & David, (2015), mission and visionstatements are of great importance in strategic management. Accordingto Ireland& Hirc (1992),vision and mission statements describe briefly a company’s businessand what it aims to achieve in the future. Two of the largest U.S.corporations in terms of performance are Walmart and Chevron Oil.Walmart’s vision statement is, “tobe the best retailer in the hearts and minds of consumers andemployees. Theprinciple value of this vision statement is that it briefly, butexplicitly states what Walmart want to become in the future. Chevron’vision statement is, “tobe the global energy company most admired for its people, partnershipand performance,”(Ferguson, 2016). It is apparent Chevron’s vision statement is ofvalue because it has given the ultimate goal for the company (Farfan,2016). Every employee in Chevron therefore, focuses on making thecompany the best performer in the global energy sector, andestablishes good relations with customers and partners.
Accordingto Ireland& Hirc (1992),a mission statement briefly explains what a company does and how itaims to carry out its business operations. Walmart’s missionstatement is, “Savingpeople money to enhance their lives.”The statement summarizes what Walmart does and why they believe theirbusiness operations are important to their customers. Therefore, themission statement is of great value to Walmart because it guides thecompany to always carry out their business operations in acost-effective manner. Chevron’s mission states that, “toconduct business in the Chevron Way,”which means “gettingresults the right way.”The mission statement is of significant value to the company becauseit concisely, but clearly describes how their business operationsshould be carried out.
Interms of importance and composition, it is evident that Walmart andChevron have significantly benefited from their vision statements.According to David & David (2015), organizations should take timewhen composing their vision statement because in one way or another,it determines the success of the company. From its vision statement,the company focuses on becoming the best in the retail industry andcurrently, Walmart has achieved this part of its vision. The visionstatement has also enabled Walmart to influence the minds of itscustomers by giving them quality goods and services at low prices(Ferguson, 2016). Currently, Chevron is among the leading companiesin the global energy industry. Its vision statement has guided thecompany’s fraternity in making Chevron the best choice for manycustomers and employees (Farfan, 2016).
Walmart’smission statement is simple, concise and to the point. The statementhas seen the company achieve its goal of saving people’s moneybecause by maintaining low prices. Despite various criticisms thatWalmart underpays its employees, the mission statement has in one wayor another enhanced people’s lives (Ferguson, 2016). Chevron has amission statement that indicates that the company has its unique wayof doing things, which is the right way. The statement is ofimportance to the company because it has always ensured that all itsbusiness operations are carried out in the right manner. It can beargued that Chevron’s success has significantly been determined byhow the company does its business.
Ibelieve that a comprehensive mission statement helps an organizationachieve high performance. According to Bart,Bontis & Taggar (2001),most of the successful companies take time to compose an inclusivemission statement that explains its business operations and themanner in which they are conducted. A comprehensive mission statementdoes not only describe what a company does but what they aim toachieve from their operations. For instance, Walmart’s missionstatement has enabled it to become the top performer in the retailindustry by maintaining low prices. Bart,Bontis & Taggar (2001)point out that a shallow and vague mission statement may become ahindrance to an organization’s success because it fails to give adefinite direction for the directors and employees.
Accordingto David & David (2015), the importance of the vision and missionstatements in strategic management is that they help a company inchoosing a specific approach. The mission statement defines what acompany does and how it is carried out while the vision states whatthe company aims to achieve from its operations. Therefore, themission and vision statement will guide a company in choosing aspecific strategy of carrying out its business operations to achievethe expected goals. From Walmart’s mission and vision statement,the company has been able to choose and stick to a strategy ofcost-effectiveness to attract many customers and enhance itsperformance. Mission statement should not contain monetary amounts,percentages, numbers, ratios, goals and objectives because of variousreasons. First and foremost, the monetary figures make the missionstatement seem as a jargon and complex for many employees. It is notalso wise to include the monetary numbers in a mission statementbecause it might drive away some customers who may perceive thecompany’s only goal is to maximize its profit at their cost.
References
Bart,C. K., Bontis, N., & Taggar, S. (2001). A model of the impact ofmission statements on firm performance. ManagementDecision,39(1),19-35.
David,F. R., & David, F. R. (2015). Strategic management concepts andcases: A competitive advantage approach [VitalSource Bookshelfversion] (15th ed.)
FarfanB. (2016). CompanyMission Statements – Complete List of World’s Largest Retail Missions. Retrievd from: http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission- Statements/BP-Values-and-Mission-Statement.-1NI.htm
FergusonE. (2016). Walmart’sVision, Mission, Generic & Intensive Strategies.Retrieved from:http://panmore.com/walmart-vision-mission-statement-intensive-generic- strategies
Ireland,R. D., & Hirc, M. A. (1992). Mission statements: Importance,challenge, and recommendations for development. BusinessHorizons,35(3),34-42.