Value of Purpose, Vision, Mission and Objectives in Strategic Direction

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Value of clear Purpose, Vision, Mission and Objectives in setting the strategic
direction of organisations....................................................................................................3
VRIO Framework...................................................................................................................4
PESTEL Framework..............................................................................................................6
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management can be defined as a constant process that involves planning,
monitoring as well as analysing the needs of an organization in order to meet its goals as well as
objectives. Effective strategic management provides a direction to the company and helps it in
achieving its goals as well as objectives in an effective manner (Choudhury, Starr and Agarwal,
2020). There are different changes that take place within the business environment of an
organization and thus, strategic management allows the company to assess its existing strategies
and attain success. Organization chosen for this report is Marks and Spencer, which is a
multinational retail organization based in London, United Kingdom. The company was founded
by Michael Marks and Thomas Spencer in the year 1884. the report critically evaluates the value
of clear Purpose, Vision, Mission and Objectives in setting the strategic direction of
organisations and analyses the external environment of the business you selected.
MAIN BODY
Value of clear Purpose, Vision, Mission and Objectives in setting the strategic direction
of organisations
Strategic direction refers to the actions that are taken by an organization in order to
achieve nits goals as well as objectives in an effective manner. It includes the plans as well. As
actions that have to be implemented to work towards achieving the vision and mission of the
firm (Ecem Yildiz, Dikmen and Talat Birgonul, 2020). Purpose is a very important aspect and it
is the reason why an organization exists. Businesses or organizations that have a strong purpose,
are able to work in a much more efficient manner and at the same time, address the needs of the
different stakeholders effectively. A business environment that is not certain does not provide
any stability to the operations of the firm. Employees within the workplace are more likely to
work for the company and give in their best efforts to work for the same. Apart from this, having
a clear purpose or mission allows the organization to be more innovative and develop unique
products. On the other hand, a clear vision is also an important aspect within the firm that has a
positive impact on the effectiveness of the organization. Apart from this, a clear vision
contributes to the overall motivation of the employees in the firm. As a result, the employees
work more efficiently and more committed towards their respective jobs. Employees who work
for organizations that have a clear and solid vision, have a proper clarity about their roles as well

as responsibilities in the workplace. Apart from this, a well formed vision statement of an
organization, allows it to develop plans, set goals as well as make informed decisions.
Many leading organizations have a clearly defined vision statement as well as purpose
and hence, they are able to attract qualified as well as experienced employees to work from them.
Apart from this, a vision helps in keeping the workforce of the company competitive as well as
focussed at the same time (Elliott, 2020). On the other hand, a mission statement can be defined
as a short statement that defines the reason why an organization exists and its overall goal.
Mission statement is very important for the organization because it contributes to the overall
success of the firm. The company is able to better understand the goals as well as objectives of
the firm and they contribute effectively to the overall success of the same. A clearly defined
mission gives the employees a clarity, direction as well as focus and it also helps the
organizations in delivering value to their stakeholders such as employees, customers as well a s
shareholders. Not only this, it also sets a strategic direction for the firm ensuring that the
employees within the company are aware of the purpose of the organization. Clearly defined
objectives also have a great value for the firm and this is because the transform the visions into
targets that are not only clear, but also measurable (Garud and et.al., 2020). Organizations that
are successful have goals as well as objectives that are clearly defined. This helps them
communicating with their stakeholders in an efficient manner. Clearly defined objectives ensure
that the strategy of the firm is described in an effective manner. Therefore, this is the value of
clearly defined objectives, purpose, vision as well as mission.
VRIO Framework
VRIO framework can be referred to as a strategic analysis tool that is primarily
designed in order to help the organizations utilize their resources in an efficient manner
and ensure a competitive advantage for long-term. The framework is primarily used by
organizations in order to categorize their resources to identify the ones that can help in
gaining a competitive advantage. The framework is important for a company because it
helps the managers in understanding the activities that are important for the growth or the
company and the ones that are not. The VRIO analysis for Marks and Spencer, which is a
market leader in the clothing retail industry is explained as follows.