Answer

The Role of Vision in Competitive and Corporate Strategies

Both vision and mission relate to a company’s purpose and are characteristically conveyed in some written form. A vision statement gives direction for a company’s employees and assists in providing inspiration (Bora et al., 2017). It describes a firm’s long-term, inspirational plan for what it will be capable of accomplishing. How the firm will be perceived and who they will assist.  Conversely, a mission statement tells everyone the purpose of an organization – the reason for the company’s existence and the company’s objectives (Cortés-Sánchez, 2017). It provides a clearer delineation of an organization’s goals and how the organization’s vision will be achieved (Dessler, 2018).  While a mission statement communicates a company’s reason for being in existence and how it seeks to serve the company’s stakeholders, a vision statement is a future-oriented, narrower declaration of a company’s aspirations and purposes.

A firm’s vision plays crucial roles in the firm’s competitive and corporate strategies. First, it is a vehicle for communicating a company’s values and purposes to all their key stakeholders, like customers, employees, investors, suppliers, and institutions. A vision statement is circulated and explained to the stakeholders so that the stakeholders can understand its meaning widely, internalize, and share (Dessler, 2018). Bora et al. (2017) note that the better workers understand a company’s purpose, through its vision and mission, the better they will be able to comprehend the strategy and its implementation. Secondly, vision creates a target for a company’s strategy development. A vision statement provides a link between an organization’s strategy and mission. Thus, a vision statement creates a restlessness and tension with regard to a company’s status quo, that is, they encourage a spirit of constant improvement and innovation (Cortés-Sánchez, 2017). Thirdly, a vision statement provides a high-level, and the strategy offers a particular guide, to the objectives and goals showing failure or success of the approach and gratification of the greater set of goals/objectives that are stated in a company’s mission statement (Dessler, 2018).

In a nutshell, together, vision and mission statements guide strategy development, assist in communicating a company’s purpose to its stakeholders, as well as inform the objectives and goals set to determine if the approach is on track. They communicate an organization’s purpose to stakeholders, inform a company’s strategy development, and develop the quantifiable objectives and goals by which to measure the organization’s success.

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