Vision, mission, and strategy are three key elements of strategic management, but they have different meanings and functions:
- Vision: A vision is a statement that describes the ideal future state or direction of an organization. It is a long-term, aspirational statement that provides a sense of purpose and direction. A vision is meant to inspire and motivate employees and stakeholders and guide decision-making.
- Mission: A mission statement defines the purpose of an organization, including its products, services, and values. It communicates why the organization exists and what it seeks to accomplish. A mission statement is a more concrete statement than a vision and helps to define the organization’s scope and focus.
- Strategy: Strategy refers to the plan or approach that an organization uses to achieve its goals and objectives. It involves setting objectives, identifying resources and capabilities, and determining actions that will be taken to achieve the desired outcomes. A strategy is a detailed plan that outlines how the organization will allocate resources and deploy its capabilities to achieve its mission and vision.
Some examples of vision and mission statements from real-world organizations:
- Amazon
Vision: “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.”
Mission: “To continually raise the bar of the customer experience by using the internet and technology to help consumers find, discover and buy anything, and empower businesses and content creators to maximise their success.”
- Tesla
Vision: “To accelerate the world’s transition to sustainable energy.”
Mission: “To create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.”
- Oxfam
Vision: “A world without poverty.”
Mission: “To alleviate poverty, strengthen communities, and campaign for change in the policies and practices that keep people trapped in poverty.”
- Nike
Vision: “To bring inspiration and innovation to every athlete in the world.”
Mission: “To bring innovation and inspiration to every athlete in the world. If you have a body, you are an athlete.”
- The Walt Disney Company
Vision: “To be one of the world’s leading producers and providers of entertainment and information.”
Mission: “To entertain, inform and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds and innovative technologies that make ours the world’s premier entertainment company.”
These are just a few examples of vision and mission statements from real-world organizations. These statements reflect the organization’s purpose, values, and goals, and guide decision-making and actions within the organization.
What is Strategic Management?
Strategic management is the process of defining and implementing an organization’s strategy. It involves the analysis of internal and external factors that impact the organization, developing a strategy based on these factors, and implementing the strategy through actions and tactics. The goal of strategic management is to align the organization’s activities with its mission and vision and to create a sustainable competitive advantage.
In summary, vision, mission, and strategy are key components of strategic management, but they serve different purposes. Vision and mission provide a sense of direction and purpose, while strategy is the plan that outlines how the organization will achieve its objectives. Strategic management is the process of defining and implementing the organization’s strategy to achieve its goals and objectives.
