Explain the purpose of mission statement, vision statement, values statements, and objectives.

Question

What will be an ideal response?

Answer 1

Answers may vary but may include the following: Mission, vision and value statements communicate to the corporation's stakeholders (employees, stockholders, governments, partners, suppliers, and customers) what the company is, where it is going, and the values that will guide the behavior of the organization's members. Some firms combine two or all three of these into a single statement, whereas others have separate statements. The mission statement defines the purpose for a company's existence, including its business, objectives, and approach for reaching those objectives. A vision statement is a description of the company's desired future position, of what it hopes to accomplish if it can acquire the necessary competencies and successfully implement its strategy. In contrast, a values statement is intended to be a clear, concise description of the fundamental values, beliefs, and priorities of the organization's members, reflecting how they want to behave with each other and with the company's customers, suppliers, and other members of the global community. Objectives direct the firm's course of action, maintain it within the boundaries of the stated mission, and ensure its continuing existence.