Group Assurance of Learning Exercise

Compare and contrast vision statements with mission statements in terms of composition and importance.

The vision statement answers the question “what do we want to become” (David, 2007)? Where do we go from here and what do we want to become? “Vision statements should be clear and concise, memorable, exciting and inspiring, challenging, and centered on excellence, both stable and flexible and achievable and tangible” (Akpoyomare Oghojafor, Olayemi, Okonji, & Okolie, 2011).

The mission statement answers the question “What is our business” (David, 2007)? Mission statement distinguishes one company from another and answers the question “what do we do?” “The mission describes the organization’s values, aspirations and reason for being. Formal mission statements are a broadly shared definition of purpose. A mission statement answers the following questions, what is our business i.e., who are our customers and which of their needs are we seeking to serve?”(Akpoyomare Oghojafor et al., 2011).

In your opinion, what are the three most important components that should be included when writing a mission statement? Why?

1. The importance of the customers and the commitment the company has to them should be a major component in a mission statement. 2. Company philosophy should be addressed covering topics such as ethics, morals, environmental practices, etc… 3. Technology should be a major component; customers want to know that whatever products they are buying from you are being produced with the latest equipment available and the highest degree of quality possible.

How would the mission statements of a for-profit and a nonprofit organization differ?

For-profit organizations operate and revolve around their shareholders with a clear plan how the company will be even more profitable in the future. The goal is to make more for the shareholders and make a profit “You want to get everyone aligned and excited to make decisions for the good of the business”(“Developing mission statements that matter,” 2012)

“Nonprofit organizations come to existence based on the society’s needs” (Zamanian, Emamian, Moghadam, Sahafzadeh, & Hosseini, 2011). Nonprofit organizations operate and revolve around the ideals of their workers and their clients.

List eight benefits of having a clear mission statement.

1. Better financial results
2. Unanimity of purpose
3. Resource allocation
4. Establishment of culture
5. Focal point for individuals
6. Establishment of work structure
7. Basis of assessment and control
8. Resolution of divergent views

23. How often do you think a firm’s vision and mission statements should be changed?

Writing a vision and mission statement should be well thought out and encompass the total concept of the company being able to stay in cohesion as the company grows. “Vision and mission statements always should be subject to revision, but, if carefully prepared, they will require infrequent major changes. Organizations usually reexamine their vision and mission statements annually but effective mission statements stand the test of time.” (David, 2007)

References:

David, Fred R. (2007). Strategic management: concepts and cases .13th ed. Upper Saddle River, New Jersey: Pearson Education, Inc.,

http://bb7.liberty.edu/bbcswebdav/pid-19442615-dt-content-rid-133626046_1/xid-133626046_1

Akpoyomare Oghojafor, Ben E., Olayemi, Olufemi O., Okonji, Patrick S., & Okolie, James U. (2011). Enhancing Organization’s Performance Through Effective Vision and Mission. Chinese Business Review, 10(11), 1071-1075.

Developing mission statements that matter. (2012). Northern Colorado Business Report, 17(17), 19A-25A.

Zamanian, Mostafa, Emamian, Seyed MohamadSadegh, Moghadam, Naser Bagheri, Sahafzadeh, Mahdi, & Hosseini, Seyed Hossein. (2011). Providing a Conceptual Framework to Formulate Mission Statement in Nonprofit Voluntary Organizations — Case of an Iranian Organization. International Journal of Business & Social Science, 2(15), 129-135.