The Significance of Vision and Mission Development for Enterprises

This assignment analyzes the significance of vision and mission statements for enterprises, particularly within the context of the Slovak Republic and global markets. It examines the core concepts of strategic management, emphasizing the importance of the Five P's (plan, play, pattern, position, and perspective) in achieving competitiveness. The essay highlights the role of a team approach in enhancing firm competitiveness by offering diverse perspectives, and it clarifies the distinctions between mission and vision statements. Furthermore, the assignment explores the crucial role of strong leadership in formulating these statements and developing effective execution strategies, while considering both internal and external factors like economic trends, competitive environments, and the firm's capabilities. The conclusion reinforces the significance of strategic management, team collaboration, and understanding the nuances of vision and mission statements for achieving long-term success and growth. The essay draws on various academic sources to support its arguments.

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“The Significance of Vision and Mission Development for
Enterprises in Slovak Republic.”

Assignment Task
Table of Contents
Introduction 3
Discussion 3
Three key ideas and its significance for the firm’s competitiveness in the global market 3
Role of a strong leader in formulating vision and mission statements 4
Analysis of internal and external factors for developing vision and mission statements for
global firms 5
Conclusion 6
References 7
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Introduction
In this assignment, a detailed analysis of a firm’s competitiveness based on mission and
vision statements has been carried out. Besides, the role of leaders and the need for considering
internal and external factors have been also explored explicitly.
Discussion
Three key ideas and its significance for the firm’s competitiveness in the global market
1st key idea
It has been well highlighted in the book by Ketchen & Short (2012) that strategic
management encompasses the Five P’s including plan, play, pattern, position, and perspective.
Each of the factors is highly essential for developing strategies and processes that can ensure a
firm’s competitiveness in the global market. Based on the article, it has been identified that the
concept of strategic management can act as a competitive advantage in this changing business
environment. The formulation of mission and vision is a significant part of the strategic
management process that assists to foresee future direction and long-term direction, Cortés-
Sánchez (2017).
2nd key idea
On the other hand, a team approach is also an influencing factor that enhances a firm’s
competitiveness in the changing global environment. It has been well stated by Bora et al.
(2017), team approach assists to attain the goals and vision of the firm at ease as it offers distinct
views of each individual based on which strategic activities can be selected. This can certainly
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Assignment Task
assist to achieve the mission and vision of the firm; resulting in a competitive advantage and
process to cope up with the changing environment. Likewise, the article also highlights that a
team approach can reflect creative potential in developing vision statements for the firm.
3rd key idea
The need to comprehend the difference between mission and vision statements of a firm
is also a significant fact that has been identified from the article. As put forwarded by Allison
(2017), a mission statement can be defined by what a firm is presently doing whereas a vision
statement highlights the final goal of what the firm would prefer to accomplish. Hence, it is
essential to comprehend the difference between the two statements as they have different
purposes and can assist to have a clear direction of the future.
Role of a strong leader in formulating vision and mission statements
As put forwarded by Fontanella & Chandra (2017), leadership has a significant influence
on developing the vision and mission of an organization as well as formulates effective execution
strategies to attain the vision and mission. Besides, strong leaders play a major role in developing
mission and vision statements for an organization that assists to gain competitive advantages as
well as success in the global market. On the other hand, Ketchen & Short (2012) suggested that
strategic leaders must be ensured that their firms integrate three kinds of aims: mission, vision,
and goals.
Goals are defined as more specific aims that firms achieve to attain their missions and
visions. Likewise, the vision of a firm highlights the aspiration of a firm for the future whereas
mission reveals the present and past existence and role of the firm in the society. It has been well
stated by Alegre et al. (2018) that leaders are known as the nucleus of the firm, and it's their role
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to pursue each goal for attaining mission and visions of the firm; resulting in long-term success
and growth in the market.
Visionaries or strategic leaders are those who can formulate persuasive images of the
future, Pandey et al. (2017). Besides, it is their role to influence and motivate the entire
organization to attain the vision and mission of the firm based on the persuasive images of future
instances. Other than that, it has been also highlighted in the article that mission is the
appearance of wisdom for a firm as well as a sign of mutual understanding and coordination in
the entire firm. Furthermore, the article reveals that vision is created through imagination which
is a power or act of comprehending imaginative mental images. Hence, the role of leaders in a
firm is significant to formulate the effective mission and vision statements as its successful
execution can ensure collaboration, success, growth and financial stability of the firm, Mansi et
al. (2017).
Analysis of internal and external factors for developing vision and mission statements for
global firms
As put forwarded by Spear (2017), vision statements analyse the questions such as why
and where we are going whereas mission statements focus on the firm’s activities and analyses
the questions such as what we do as well as who we are. Besides, both the statements have equal
contribution and influence towards the firm’s aspirations, values, philosophy, and beliefs. Hence,
the consideration of both internal and external factors is significant for the competitive edge and
growth of the firm in the global business world.
Concerning the book by Ketchen & Short (2012), reveals that both macroenvironment
and the competitive environment is highly essential to consider for external factors such as
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economic, social trends, government regulations, demographics as well as technological trends to
gain success in the market. Likewise, Dermol & Širca (2018) also argued that a firm’s culture,
resources, employees, supplier relations as well as business model highly influence visibility and
novelty. In addition, both the macro and the microenvironment have to be considered for
formulating the mission and vision statements for a global firm as it can ensure appropriateness
and feasibility in achieving the goals.
On the other hand, Kreutzer (2019) argued that developing vision and mission statements
for firms require consideration of the internal capabilities of the firm as well as the external
situation of the industry for surviving in the competitive environment. It can be stated that the
internal capabilities of firms complement the external situation that certainly requires in-depth
market-sensitive information and the firm’s business structure. Also, comprehending both the
factors is significant for global leaders to develop vision and mission statements as considering
one factor might bring failure to the firm’s success and competitive edge in the market.
Conclusion
Therefore, it can be stated that the concept of strategic management, team approach and
comprehending the difference between mission and vision statement is significant for global
firms to gain a competitive edge. In addition, the role of leaders is also essential for developing
vision and mission statements while considering both internal and external factors to gain
success and growth.
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References
Alegre, I., Berbegal-Mirabent, J., Guerrero, A., & Mas-Machuca, M. (2018). The real mission of
the mission statement: A systematic review of the literature. Journal of Management &
Organization, 24(4), 456-473.
Allison, J. (2017). A vision statement taxonomy: linking strategic management, strategic
communication, and organizational culture. Global Journal of Management and
Marketing, 1(2), 1-19.
Bora, B., Borah, S., & Chungyalpa, W. (2017). Crafting Strategic Objectives: Examining the
Role of Business Vision and Mission Statements. Journal of Entrepreneurship and
Organizational Management, 6(1), 205-212.
Cortés-Sánchez, J. (2017). Mission and vision statements of universities worldwide: A content
analysis. Documentos De Investigación, Facultad de Administración, (152), 2463-1892.
Dermol, V., & Širca, N. T. (2018). Communication, company mission, organizational values,
and company performance. Procedia-Social and Behavioral Sciences, 238, 542-551.
Fontanella, A., & Chandra, N. (2017). The Effect of Vision and Mission Statement on
Performance of Accounting Program of State Polytechnics in Indonesia. International
Journal of Innovation and Research in Educational Sciences, 4(4), 476-482.
Ketchen, D., & Short, J. (2012). Strategic Management: Evaluation and Execution (v.
1.0). Chapter, 2, 70-75.
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Kreutzer, R. T. (2019). Vision, Mission and Goals. In Toolbox for Marketing and
Management (pp. 33-48). Springer, Cham.
Mansi, M., Pandey, R., & Ghauri, E. (2017). CSR focus in the mission and vision statements of
public sector enterprises: Evidence from India. Managerial Auditing Journal.
Pandey, S., Kim, M., & Pandey, S. K. (2017). Do mission statements matter for nonprofit
performance? Insights from a study of US performing arts organizations. Nonprofit
Management and Leadership, 27(3), 389-410.
Spear, S. (2017). Impression management activity in vision, mission, and values statements: A
comparison of commercial and charitable organizations. International Studies of
Management & Organization, 47(2), 159-175.
Article
Papulova, Z. (2014). The significance of vision and mission development for enterprises in
Slovak Republic. Journal of Economics, Business and management, 2(1), 12-16.
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