Role of Vision and Mission Statements

The vision and mission statement of organizations define their internal functioning and decision making framework. They become crucial for organizations in achieving the organizational goals. The following paper will evaluate the vision and mission statement of two of the fortune 500 companies. The companies who have been selected for this paper are Toyota motors and Walmart. In addition to evaluating the mission and vision statements of the companies, a comparison in between the aforementioned companies will be carried out.

Running head: ROLE OF VISION AND MISSION STATEMENTS
Role of Vision and Mission Statements
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1ROLE OF VISION AND MISSION STATEMENTS
The vision and mission statement of organizations define their internal functioning
and decision making framework. They become crucial for organizations in achieving the
organizational goals (Baumgartner, 2014). The same can be responsible for setting the
company apart from their competitors. Companies that achieve success in the market by
attaining profitability in both material and non-material terms make it to the list of Fortune
500 companies (Ciambrone, 2018). The following paper will evaluate the vision and mission
statement of two of the fortune 500 companies. The companies who have been selected for
this paper are Toyota motors and Walmart. In addition to evaluating the mission and vision
statements of the companies, a comparison in between the aforementioned companies will be
carried out. The same will be subject to further evaluation when the importance of the link of
the statements with monetary goals are determined.
A vision statement of the company is the declaration of the company’s long term
goals and objectives (Martin, 20014). It is said that a company’s vision statement guides the
policy making decisions within an organization. The vision statement of a company may not
be restricted to just the operations of the organization. It can be used by both for profit
organizations and non-profit organizations in achieving their goals. A well-defined vision
enables a company to incorporate their activities in a productive way towards the
achievement of the company’s goals. Unlike the vision statement, a mission statement
explains why the company exists in the first place and the ultimate outcome that the company
expects from its operations (David, David & David, 2014).
The mission statement of Toyota motors is to attract increased number of customers
by offering them products that they value. Toyota motors have made considerable
advancements in sustainability. They have realized the threats that are caused to the

2ROLE OF VISION AND MISSION STATEMENTS
environment by the adverse effects of car emissions, the company has developed cars that can
be powered by electricity. Furthermore they have developed cars that consume lesser fuel as
compared to their competitors. The vision statement of the company revolves around being
successful in the market by offering value to its stakeholders. It is important for every
company to look at value creation for their stakeholders rather than just sticking to their profit
motives (Castro & Aguilera, 2015). Thus it can be said that the mission and vision statement
of the company make them properly aligned to its long term sustainability.
Walmart have established themselves as customer favorites by catering to the needs of
a range of customers and a varied demographic. Their mission statement is to provide help
people in saving money in order to help them lead better lives. The company have realized
that everyone wishes to save money wherever possible. By offering products at cheap rates
they sustain a customer base who want to acquire products at cheap rates. Their vision
statement describes the nature of operating in the US market. The vision statement of the
company is to be recognized as the desired destination where people can save money and
purchase whatever they wish to.
On comparison it can be understood both the companies have defined their vision and
mission statements in a way that position them as sustainable service providers to the
community. Walmart are found to be paying attention to the customer community by
providing cheap products whereas through their operations, Toyota have positioned
themselves as a company who put the environment ahead of profitability. Even though the
mission and vision statement of the companies are different, both have made amends in
showcasing them as service providers to the community.
Comprehensive mission statements allow companies to be aligned to their ultimate
goal (Rajasekar, 2013). The mission statement of companies might not directly reflect on

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productivity or profitability although in the long-run it helps in making amends towards
achievement of profitability.
Walmart and Toyota acts as ambassadors of customer oriented productivity. It is the
aim of every company to be profitable. While carrying out operations to achieve the same
they should ensure that they are offering value to the community. A company that stresses on
profitability in the short run perform activities that are aligned with profit-intrinsic goals
rather than offering services to the community. Both the companies have maintained their
positions in the fortune 500 group of companies for many years and the sole reason behind
that is that they have realized the importance of putting the customers and the community
before their profitability goals. Thus it can be concluded that if a company’s goals are
perfectly aligned towards the long term goals and objectives of the company, it can position
itself in the minds of the customers and that will enable them to be successful in the long run.

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REFERENCES
Baumgartner, R. J. (2014). Managing corporate sustainability and CSR: A conceptual
framework combining values, strategies and instruments contributing to sustainable
development. Corporate Social Responsibility and Environmental
Management, 21(5), 258-271.
Ciambrone, D. F. (2018). Environmental life cycle analysis. CRC Press.
David, M. E., David, F. R., & David, F. R. (2014). MISSION STATEMENT THEORY AND
PRACTICE: A CONTENT ANALYSIS AND NEW DIRECTION. International
Journal of Business, Marketing, & Decision Science, 7(1).
Garcia‐Castro, R., & Aguilera, R. V. (2015). Incremental value creation and appropriation in
a world with multiple stakeholders. Strategic Management Journal, 36(1), 137-147.
Martin, J., McCormack, B., Fitzsimons, D., & Spirig, R. (2014). The importance of inspiring
a shared vision. International Practice Development Journal, 4(2)..
Rajasekar, J. (2013). A comparative analysis of mission statement content and
readability. Journal of Management Policy and Practice, 14(6), 131-147.