Importance of Forming Vision and Mission

Running head: MANAGEMENT
MBA Assignment
Name of the Student:
Name of the University:
Author Note:

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Introduction:
The essay provides an insight to the IKEA concept through analyzing importance of the
mission and vision statement and the SWOT analysis. IKEA represents a European firm that
design and sell knock down furniture, home accessories and kitchen appliance amongst other
occasional services and useful goods. The company was found in the year 1943 by Ingvar
Kamprad and went on to become one of the biggest retailer of furniture since the year 2008.
IKEA is a private firm that is owned by the Inter IKEA Systems B.V. which is registered in
Netherlands and controlled by Ingvar Kamprad, the founder (ikea.com 2019). The company is
famous for the modest designs of various kinds of furniture and appliances while its work related
to the interior design work remains associated with the eco-friendly simplicity. The firm is
known for its operational details, cost control and continuous development of product that
allowed the company to lower the prices by close by two to three percent. The group has a
complicated corporate structure and is controlled by various foundations located in Liechtenstein
and Netherlands.
The essay through an analysis provides an insight into the mission and the vision
statement of IKEA concept along with a Strength, Weakness, Opportunities, Threat (SWOT)
analysis.
Discussion:
Importance of Forming Vision and Mission Statement
The vision statement is usually used for describing future state of an organization. It is
what an organization hope thinks of becoming in future (Hattangadi 2015). It represents long
term goal that provides a direction for an organization. It also communicates purpose of an

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organization to employees and the stakeholders thereby providing them an inspiration for
achieving the purpose. Put differently, the vision statement of the organization represents the
future or upcoming desire that is valid and must go on and never change with every cycle of the
organization.
On the other hand, mission statement provides a description to the present state of the
organization along with its objectives and goals (Babnik et al. 2014). It provides in detail
information regarding what an organization does, the way it does and for whom it is doing for.
Unlike vision statement, it has a short time nature. It is however related to vision statement in
outlining the primary goals which will enable an organization in achieving the future desired by
an organization. In other words, the mission statement focuses on the advantages offered to
consumers as well as patrons. It also discloses the particular purpose of the organization.
Nevertheless, the importance of the vision and the mission statement is described in the
following paragraphs.
A noble mission statement is the outcome of success of an organization (Williams,
Morrell, and Mullane 2014). It is vital for companies in finding out ways and ensure regular
confirmation on whether the company or the organization remains on the right track. The
purpose of mission statement of an organization lies in aligning the people and merge all
individual activities in group. It also informs the employees of the organization whether the work
they do is worthwhile or important. A strong statement is also able to describe importance of the
work to an organization. It can bring about a change in the thought process for improving the
organization and providing ancillary customer level service to customers. Mission represents the
value that reflects the change within an organization (Kickul and Lyons 2016). The mission
statement of an organization puts across the primary objectives and the purpose. The key

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function of the statement lies in the evaluation of the key business and the success of the
company along with stockholders and the team leaders.
The aim of the vision statement lies in defining the purpose of the company. This
statement does not measure bottom line but it measures value of a company (Plan 2015). In other
words, this statement helps in communicating the values and aims of a company. It provides
direction to employees on how they are able to their best service to the customers.
Thus, the mission and the vision statement have the benefit of aiding the company in
achieving where the company want to reach. These statements are also helpful in focusing what
needs to be done and what should be done. The mission and the vision statement provides higher
energy for attaining or setting the goal (Calder 2014). In this regard, it can be said that a mission
without a vision is nothing. Mission statement puts forward a proper aim and activity of a
company which is vital for the vision. In other words, mission statement acts as the North Star
thereby providing a direction to the organization while vision statement the goals that needs to be
reached through this direction. The aim of both the statements lies in addressing and achieving
the major and vital goal of the organization. Therefore, without a proper mission and vision
statement the company is unable to achieve its goals. Hence, such statements are formulated
within the company.
Another key benefit of mission and the vision statement lies in defining the strategic plan
of a company (Rajasekar 2013). Thus, these statements possess acts as propellant for the
company in future. These statements are helpful in communicating and guiding a company or an
organization. Besides, these statements also allows in properly aligning resources of the
organization through attaining a successful future.