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. According toDavid & David, (2015), mission and vision statements are of greatimportance in strategic management. Ireland& Hirc (1992),indicates that, the statements describe briefly a company’sbusiness and what it aims to achieve in the future. Two of thelargest U.S. corporations in terms of performance are Walmart andChevron 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 the company the best performer in theglobal energy sectorand establishes 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 operations in a cost-effectivemanner. 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,inone way or another, it determines the success of the company. Fromits vision the company focuses on becoming the best in the retailindustry and currently, Walmart has achieved this part of its vision.The vision statement has also enabled Walmart to influence the mindsof its customers by giving them quality goods and services at lowprices (Ferguson, 2016). Currently, Chevron is among the leadingcompanies in the global energy industry. Its vision statement hasguided the company’s fraternity in making Chevron the best choicefor many customers and employees (Farfan, 2016).
Walmart’smission statement is simple, concise and to the point, thus helpingthe firm achieve the goal of saving people’s money because bymaintaining low prices. Despite various criticisms that Walmartunderpays its employees, the mission statement has in one way oranother 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. It is of importance to thecompany because it has always ensured that all its businessoperations are carried out in the right manner. It can be argued thatChevron’s success has significantly been determined by how thecompany 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 the necessary timeto compose an inclusive mission that explains its business operationsand the manner in which they are conducted. A comprehensive missionstatement does not only describe what a company does but what theyaim to achieve from their operations. For instance, Walmart’smission statement has enabled it to become the top performer in theretail industry by maintaining low prices. Bart,Bontis & Taggar (2001)point out that a shallow and vague mission may become a hindrance toan organization’s success because it fails to give a definitedirection 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. Therefore, the mission and visionstatement will guide a company in choosing a specific strategy ofcarrying out its business operations to achieve the expected goals.From Walmart’s statements, the company has been able to choose andstick to a strategy of cost-effectiveness to attract many customersand enhance its performance. Mission statement should not containmonetary amounts, percentages, numbers, ratios, goals and objectivesbecause of various reasons. The monetary figures make the missionstatement seem as a jargon and complex for many employees. It is notalso wise to include figures in a mission statement because it mightdrive away some customers who may perceive the company’s only goalis to maximize its profit at their cost. From the above, it is thusimportant for companies to develop sound statements to ensuresustainability.
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. Retrievdfrom: 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.