Corporate Vision Mission And Production And Operations Management Commerce Essay

September 28, 2017 Commerce

There are obliging grounds for administration to develop strategic vision. It stimulates administrations mission and challenge employees. In add-on corporate mission statements which are cardinal alone intent that differentiates a house, sets the organizational context for strategic determinations. The undertaking for production and operations direction is to associate the corporate mission and vision statements to the operating features of the production procedure. This paper argues that corporate vision should inform mission statement and that a future compelling image of production and operations activities should inform both. It is suggested that researching and developing the company ‘s operating system for competitory advantage is a merchandise of vision and mission alliance and comprehension. This indicates that a faulty or ill defined vision or mission statement could suppress the behavior of production and operations direction activities and advance endeavor failure.


The definition of corporate vision and mission statement is a undertaking that can easy be slighted in the strategic direction procedure. Some corporations do non hold a vision or mission statements or simply take both to intend the same or are quite ill-defined in their definition of both statements. But the critical functions of both the vision and mission statement in supplying and steering the model for managerial actions indicates that listlessly specifying or cold-shouldering the undertaking of specifying these statements could be counter-productive. For illustration, in the absence of good articulated vision and mission statement proviso of incorporate way for the corporate geographically scattered employees will be rather hard. In add-on, supplying a footing for a civilization that guides future executive action will be absent.

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Therefore, the undertaking of specifying a image of the company ‘s finishs, puting forth the hereafter functions and aims of the administration and the cardinal alone intent that differentiates and associate the administration with the society are non to be taken lightly. This attempt requires serious attending and should be consistently determined. The issues are cardinal to production and operations direction in that corporate vision and missions articulate the long term purposes, dreams and aspirations of proprietors and strategic determination shapers ; and put the canvas for concern operational activities.

This paper, hence, is intended to research and set up the interface between corporate vision, mission and production and operations direction. How the vision and mission statement provides the model for direction of physical operations, fabrication and services.

Corporate Vision

A corporate entity needs a vision because ” where there is no vision, the people perish… ‘ ( Proverb 29: 18 ) . This citation from the sanctum writ competently captures the kernel of vision both at persons and corporate degree. Vision is of import in that it guides and perpetuates corporate being. Vision is viewed as a mental image of a compelling future state of affairs. It originates from originative imaginativeness, the act or power of comprehending inventive mental images or foresightfulness.

Corporate vision could be thought of every bit related to intuition. This is, nevertheless, non to extinguish other beginnings of corporate vision. Corporate vision can be associated with external bureaus infliction of scheme or vision and, they can be intentionally formulated as portion of be aftering procedure ( Johnson, Scholes and Whittington 2006 ) . Indeed, some authors have pointed out that the function intuition has been neglected ( Hurst, Rush and White, 1989 ) . Such downplay seem to pretermit world as Hurst argued that puting new concern ventures turnaround and new schemes are the merchandises of originative stock list direction instead than detailed planning.

Notwithstanding the procedure taking to the exigency of vision, from strategic direction positions, corporate vision creates a image of a company ‘s finish and provides a rational for traveling at that place ( Thompson, Gamble and Strickland,2004 ) -Somewhat of a roadmap of a company ‘s hereafter. Basically, corporate vision represents the dreams, wild aspirations of the company as may be stated by the top executives or laminitiss of the administration.

Corporate vision is the coveted future province of the administration ; an aspiration around which a strategian might seek to concentrate the attending and energies of the administration ( Johnson,, 2006 ) . And, in the words of Bennis and Nanus ( 1997 ) strategic determination shapers or laminitiss must foremost hold developed a mental image, a mental image, of a possible and desirable future province of the administration. They emphasised that the critical point is that a vision articulates a position of a realistic, believable, attractive hereafter for the administration ; a status that is better in some ways than what now exists. Corporate vision delineates direction aspirations for the concern, supplying a bird’s-eye position of where are we traveling and why?

Consequently, the vision statement should be a necessity and a utile direction tool for giving an administration a sense of future way for a feasible corporation. A future way that becomes existent when the vision statement is implanted in the heads of administrations members ( Thompson,,2004 ) and so translated into concrete mission or intent for the administration.

This demands the communicating of corporate vision to determination shapers and top degree directors. It is merely on this land that they can be emotionally committed to doing the vision a world. The consciousness of why, where and how the administration and its rivals will be viing in the hereafter creates a graphic image that provokes emotion and enthusiasm ( Lynch, 2006 ; Thompson., 2004 ) . Visions, in our considered sentiment, indicate aspirations and the mission statements indicate undertakings to be accomplished and their chases are in footings of specific corporate aims, schemes and runing policies anchored in production and operations direction capablenesss

A corporate vision is the corporate future image. It is a challenging and inventive image of the hereafter functions and aims of an administration, sometimes, significantly traveling beyond its current environment and competitory place ( Lynch, 2006 ) . It may, therefore, be a extremely coveted possibilities that may non be come-at-able. It is an inspirational resonance of desires, values and possibilities which overlap ( Wootton and Horne, 1997 ) . Bennis and Nanus ( 1997 ) nevertheless argued that there are obliging grounds for administrations to develop strategic visions. It is argued that visions provide desirable challenge for employees and stimulate administrations mission positively. In add-on, it is suggested that geographic expedition of new development countries outside bing boundaries and resources are frequently the merchandise of a vision that requires careful geographic expeditions and development.

Hamel and Prahalad ( 1994 ) have suggested that the relevancy and rightness of a corporate vision statement can be judged on five standards: foresight, breath, uniqueness, consensus and action ability. Reasoned considerations of these variables should assist a visionless administration to develop one. And, in the sentiment of Lynch visions can take to a intent or engineer a alteration of intent


Strategic determination shapers need to find the basic ends, features and doctrines that key-in into the corporate vision. The intent of the mission statement is to put the organizational context within which strategic determinations are made to supply the house with a strategic focal point and way in the realization of the stated or implied vision. Harmonizing to Pearce II ( 1982 ) corporate mission is the cardinal alone intent that set a steadfast apart from others of its type and that identifies the range of its operations in merchandise and market footings.

The mission statement distinguishes a corporate entity by specifying the functions that the administration is to play in the society. That is, the peculiar demand ( s ) of the society for which the administration exists to function. Therefore, the mission statement defines the basic grounds for the being of the administration. And, as suggested by Kazmi ( 1996 ) it serves to associate the administration to the society. Therefore, a formal mission statement answers the inquiry of any venture such that any spoting foreigner can come to term with what concern the concern entity is in and what are the grounds for its being. A clear definition of corporate mission and intent is, hence, indispensable for efficaciously set uping aims and scheme preparation. That is, the corporate mission is a foundation for corporate precedences, schemes, thoughts and assignment


It has been suggested that clearly defined missions are indispensable for the well- being of an establishment ( Drucker, 1973 ) .Indeed, extant literature suggested that establishment without clear ends may be capable to both external and internal force per unit area than establishments with clearly defined missions and ends ( Perrow,1970 ) .The importance of corporate mission statement notwithstanding Pearce and David ( 1987 ) postulate that no empirical research has been published as usher to corporate mission statement development. However, from the scrutinies of corporate mission statements available groundss indicates common properties of the mission statement. From the plants of Pearce ( 1981 ) ; Pearce and David ( 1987 ) the mission statement describes corporate intent, clients, merchandises or services, market niche, country of operations, concern doctrine and basic operative mechanisms.

In add-on, the corporate ego construct, desired public image and nucleus engineerings to be adopted are cardinal constituent of the corporate mission statement. The unsated demands of clients must be anticipated and incorporated into the corporate mission. Blunt perceptual ability in stipulating cardinal constituent of the corporate mission in such mode that incorporates clients ‘ future demands can be inhibitive- an inhibiting factor in accommodating to altering external environment ( Fjortoft and Smart, 1994 ) . The instance of the US rail route is a classical illustration. Railwaies defined their industry wrongly and became product- oriented alternatively of client -oriented, that is, they were railroads- oriented alternatively of transit -oriented ( Levit, 1960 ) . This constrained railwaies ability to react to the market through managerial ingeniousness and accomplishment which could hold secured growing for the endeavor. The lesson drawn from the rail route experience is the demand non to concentrate on a merchandise or service.

The flight path in developing a meaningful mission statement is a focal point on the public-service corporation O f the company ‘s merchandise to clients. However, there is the demand to avoid ”pious cliche ” as it is suggested that most corporate missions are abstract and consist of pious cliches frequently explicating necessities as aims ( Ackoff, 1987 ) . A good developed corporate mission must distinguish the company from other of its type and relevant to all the relevant interest holders. The relevancy of the mission to claimant is the extent of the incorporation of their involvements in the house ‘s






Labour Unions

General Public


Board of Directors


Senior Management/Executive Military officers



Adapted ”The Company Mission as a Strategic Tool ” Pearce II, J.A. Sloans Management Review Spring 1982

It is necessary that the claims of these internal and external claimants must be recognized and acknowledge in the procedure of developing a meaningful and digesting mission statement


True, a figure of corporations took their vision and mission statements to intend the same thing while some have both a written mission and vision statement. It is of import in this context, nevertheless, to understand the difference between the corporate mission and their visions. Vision in one breath is the future image of the administration while the mission statement describes the function that the administration chooses to follow based on current state of affairs. Indeed, the mission statement clearly answers the inquiry ”what is the corporate concern? ” the vision statement answers the inquiry ”what the corporate entity want to be ”

The construct of vision and mission is clearly distinguished in the advertised motto of a Nigerian bank: ‘Twenty old ages ago we have a vision, Today, we have a mission ” This advertised slogan competently demonstrates the relationship between corporate vision and mission. Vision is a background for the development of intent. Vision should of course convey about a sense of intent and mission.

Harmonizing to Wootton, ( 1997 ) vision should inform the mission statement and be embedded in it. Visions, they insisted, must be realistic in the visible radiation other aspects of the mission. Consequently, we can spot or deduce from the mission statement the hereafter concern aspirations, expected alterations in company ‘s concern and the way the concern is heading


Production and Operations direction lies at the bosom of administrations attempts to realize the mission statement. Corporate visions and missions remain abstract pious cliches until it is linked to social demands and resources are assembled, deployed and utilised to present the mission in merchandise and service format. Production and operations activities are concerned with the transition of input resources into finished merchandises and services ( Banjoko, 2002 ) . Put otherwise, developing the mission statement in merchandise and service footings.

Production and operations direction is concerned with all facet of the direction of physical operations, fabrication, and services. The range of production and operations direction extends non merely to the polish of control techniques or development of operations processs but besides to the effectual choice, application and direction of engineerings. Basically, production and operations direction provides a nexus between operating determinations, policies and corporate mission every bit good as prescribe determinations and policies that could be adapted to maximize corporate fight. Skinner ( 1985 ) argued that operations could go a formidable competitory arm if allowed to play strategic function in the administration

Indeed, one of the most hard and of import maps of production and operations direction is that of associating corporate mission and aims to the operating features of the production procedure. Slack ( 2004 ) argued that there are five operational public presentation aims: cost, quality, velocity, flexibleness and dependableness, for illustration, all these must be translated to operational features of the production and operation system. The specifications of Excellency in end product in the mission statement demands, for illustration, finding of allowable per centum of faulty in procedure end product, merchandise dependability, warrantees offered or in the service industry in footings of service clip, waiting clip, allowable figure of clients ailments, among others.

Mission statements indicate the nucleus technologies the administration is to follow. However, production and operations direction influences the design of the production system for the bringing of the mission. The intercession steps are obtained through such agencies as merchandise and procedure design, capacity finding, installations location and layout, work design and measuring, among others.

Maximization of organizational fight in the market is for most organizational a strategic constituent of the mission statement. The beginning point for such enterprises seem to be that production and operations direction specifies and develop the general and technology specifications for the end product of the production procedure in signifier that places the organizational above rivals. In add-on, finding of the administrations desired end product rate ( capacity finding ) must turn to both current and future demand. Current operational capacities and development of capacities in hereafter is an of import operational device for organizational fight

The interlacing nature of corporate mission and production and operations direction can be depicted as below





Choice of operations scheme

Choice of operating system construction

Production and Operations direction activities

Modified and Adapted from Wootton, S and Horne T ( 1997 ) Strategic Planning: the Nine Step Programme

Visions can take to mission or technology of missions while the mission statement set the model for production and operations activities through the design of operations scheme. Operations schemes represent the company ‘s long-range program for the production of the company ‘s goods and services ( Gaither, 1996 ) . It is a route map stipulating how the house will use it production capablenesss to back up mission achievement ( Davis, Aquilano and Chase, 2003 ) . Production and operations direction through proviso of information on bing runing system construction, aims, and schemes and deductions of goods or services and demand features of goods or services being considered do act upon corporate mission.


Executions of the corporate mission statement demand the acquisition, mobilization of resources and the creative activity of appropriate constructions and procedures. Three cardinal component of the mission statement, at least, have deductions for operations and production direction: the company ‘s basic merchandise or service, primary market and nucleus engineerings for service and merchandise bringing. Primary market to be served will bespeak the nature and predictability of demand and the subsequent system construction that is executable. In add-on, operations and production accent is influenced by the broader corporate mission statement, for illustration, production accent and chase of clients ‘ service and quality merchandises is consistent with the specifications of mission statement.

From the predating the company ‘s mission statement provides the model for operations and production direction. Operation and production schemes are the agencies for interlingual rendition of mission statement into concrete merchandises consistent with the values and beliefs encapsulated in the mission defined. Operationss and production schemes are themselves derived functions of overall operating schemes which are elaborate statement of agencies to accomplish aims ( Pearce II, 1981 ) . Operating schemes, which are derived functions of corporate mission, stipulate how operations and production can accomplish organizational ends within the model of corporate mission defined.

The demand of the company mission and vision statement will significantly act upon production systems current and jutting capablenesss. Harmonizing to Wild ( 1999 ) the mission statement declarations on the nature of goods or services to be provided, nature of market to be served and mode of service influences operations and production direction pick of construction, pick of aim and production schemes.


From the foregoing, it is clear that corporate vision, mission and production and operations direction are closely related. Administrations must hold an inventive hereafter image of the functions of its production and operating system consistent with the overall vision for the administration. Harnessing resources, researching and development the operating system in line of future compelling state of affairss is a necessity for remain competitory.

Production and operations direction accomplishment of operations aims must do major parts to the fulfillment of the administration ‘s mission and the chase of its vision. Corporate mission statement provides the model for production and operations activities, notwithstanding, production and operations direction influences strategic way through proviso of information on operating construction, aims and schemes. This deduction of this is the possibilities of re-defining corporate mission and vision through originative development and geographic expeditions of the potencies of the company ‘s operating system


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