The Mission, Vision, and Values statements

Summary

This script delves into the strategic importance of mission, vision, and values for companies. It explains how these statements guide a firm's purpose, goals, and principles, with examples from PayPal, Tesla, Walmart, and others. The script highlights the necessity of clear, concise statements that communicate a company's core reason for existence, desired future state, and the values that drive its actions and decisions.

Takeaways

• 🔍 Future strategy allows top managers to define goals and objectives for the future and outline how these will be achieved.
• 📜 Mission and vision statements formalize a company's purposes, goals, and values, helping stakeholders understand the company's reason for existence.
• ❓ The mission statement addresses why a company exists and its fundamental reason for being.
• 🚀 The vision statement describes the desired future position of the company, outlining what it aims to achieve and who it wants to become.
• 🎯 Goals define what a company wants to achieve, while objectives specify actions and measures for attaining these goals.
• 📊 Goals can target various areas like growth, profitability, retention, efficiency, or customer service, often expressed as percentages.
• 💡 Objectives are specific actions that help achieve goals, such as acquiring new customers or reducing overheads.
• 🌟 Values define the principles a company upholds, placing constraints on how it pursues its goals and ensuring socially responsible behavior.
• 🔍 Mission and vision statements of companies can be found on their websites and often express the business strategy or market scope.
• 🏢 Examples of clear mission and vision statements include those from PayPal, Tesla, Google, and LinkedIn, while some like Sony and Coca-Cola may be more vague or general.

Q & A

What is the purpose of having a mission statement for a company?

A mission statement formalizes a company's purpose, goals, and values, helping stakeholders understand and keep the reason for the company's existence in mind.

What does a vision statement describe for a company?

A vision statement describes the desired future position of the company and answers questions like what the company wants to achieve in the future and who it wants to become.

How do goals and objectives differ in a company's strategic planning?

Goals help companies define what they want to achieve, while objectives are the specific actions and measures for attaining these goals.

Can you provide an example of a financial goal for a company?

An example of a financial goal could be to increase revenue by 10% and decrease overheads by 5%.

What is an example of an objective that could help achieve a 10% increase in sales?

Acquiring five new customers every month could be an objective to help achieve a 10% increase in sales.

Why is it important for a company to define its values?

Defining values is important as it helps to place constraints on how the organization pursues its goals and attracts talented individuals who are interested in working for a socially responsible employer.

How can stakeholders find a company's mission, vision, and values?

Stakeholders can easily find a company's mission, vision, and values by visiting the company's website and navigating to the relevant sections.

What is the mission statement of PayPal, and how does it reflect the company's purpose?

PayPal's mission is to 'build the web's most convenient, secure, cost-effective payment solution,' which clearly expresses the firm's purpose of providing an efficient online payment method.

What is the vision statement of Tesla, and what does it convey about the company's future aspirations?

Tesla's vision is 'to accelerate the advent of sustainable transport by bringing compelling, mass-market electric cars to market as soon as possible,' indicating the company's commitment to sustainable transportation.

How do Walmart and IKEA's mission statements reflect their business strategy?

Walmart and IKEA's mission statements reflect a cost leadership business strategy by focusing on saving people money and offering products at low prices to improve everyday life.

What are the guiding principles for Facebook's employees as stated in the company's values?

Facebook's values guide its employees to be impactful, dynamic, bold, open, and socially responsible in their behavior.

Why are clear and memorable vision statements important for a company?

Clear and memorable vision statements are important as they inspire employees, provide direction, and help communicate the company's long-term aspirations.

What can we learn about a company by reading its mission, vision, and value statements?

By reading a company's mission, vision, and value statements, we can learn about the company's understanding of the world, its desired behavior, and its long-term goals and aspirations.

Outlines

00:00

📈 Strategic Planning: Mission, Vision, and Values

This paragraph discusses the importance of strategic planning for a company's future, focusing on the development of mission and vision statements. It explains that these statements formalize a company's purpose and goals, helping stakeholders understand the company's direction. The mission statement answers the 'why' of a company's existence, while the vision statement outlines the 'what' and 'who' of the company's future aspirations. The paragraph also covers the significance of setting specific goals and objectives to achieve the company's vision, providing examples of how companies like PayPal and Tesla have defined their missions. Additionally, it touches on the importance of upholding values and principles, which are crucial for attracting talented individuals who seek to work for socially responsible employers.

05:01

🌐 Company Culture and Guiding Principles

The second paragraph delves into the role of company values in shaping the behavior and business practices of an organization. It uses Facebook as an example to illustrate how values such as being impactful, dynamic, bold, open, and socially responsible guide the company's operations and employee conduct. The paragraph emphasizes the importance of defining and communicating these values to ensure that the company's actions align with its stated principles. It also highlights the insight that can be gained by examining a company's mission, vision, and value statements, which reveal its understanding of the world and its aspirations within it.

Keywords

💡Strategy

Strategy refers to a long-term plan designed to achieve a particular goal. In the context of the video, it is the dynamic concept that allows top managers to outline how company goals and objectives will be achieved, emphasizing the importance of planning for the future to guide a company's direction.

💡Mission Statement

A mission statement is a declaration that states an organization's core purpose and focus. It addresses why the organization exists and what it aims to achieve. In the video, the mission statement is highlighted as a crucial tool for formalizing a company's purpose and helping stakeholders understand its fundamental reason for existence.

💡Vision Statement

A vision statement describes a company's desired future position and what it aspires to become. It outlines the long-term goals and the path to achieving them. The video script uses vision statements as examples to show how companies like Google and LinkedIn aim to inspire and guide their actions towards a defined future.

💡Goals

Goals are broad aims that a company sets to target different areas such as growth or customer service. They provide a direction for the company's efforts. In the script, goals are exemplified by financial targets, such as increasing revenue by a certain percentage, which is a clear and measurable objective.

💡Objectives

Objectives are specific actions or measures designed to achieve the broader goals set by a company. They are more detailed and actionable than goals. The video provides examples of objectives such as acquiring new customers or finding less expensive office premises to reduce overheads.

💡Values

Values are the principles and beliefs that guide an organization's behavior and decision-making. They define what the company stands for and how it operates. The video script mentions that most organizations have a set of values that place constraints on how they pursue their goals, with Facebook's values being given as an example.

💡Stakeholders

Stakeholders are individuals or groups with an interest or concern in the actions of a company. The video emphasizes that stakeholders need to understand the company's mission, vision, and values, as these statements help them align their interests with the company's direction.

💡Profit Maximization

Profit maximization is the process of increasing a company's profits to the highest possible amount. While important, the video script points out that it is not the sole focus of a company and that upholding values and principles is also crucial for success.

💡Social Responsibility

Social responsibility refers to a company's commitment to operating in an ethical and sustainable manner, considering the impact of its actions on society. The video mentions that talented individuals often seek employers who are socially responsible, indicating the importance of this concept in modern business practices.

💡Business Ethics

Business ethics are the moral principles that guide businesses in their dealings with consumers, employees, investors, and the public. The video script suggests that integrity and business ethics are important values for companies, particularly when attracting talent who value ethical business practices.

💡Cost Leadership

Cost leadership is a competitive strategy where a company aims to become the lowest-cost producer in its industry. The video uses Walmart and IKEA as examples of companies that follow a cost leadership strategy, emphasizing their mission to offer products at the lowest possible prices.

Highlights

Future strategy is a dynamic concept for defining company goals and objectives.

Formal mission and vision statements help formalize a company's purposes, goals, and values.

The mission statement addresses the fundamental reason for an organization's existence.

The vision statement describes the desired future position of the company.

Goals help define what a company wants to achieve, while objectives are specific actions to attain those goals.

Goals can target areas like growth, profitability, retention, efficiency, or customer service.

Financial goals might include increasing revenue by a percentage and decreasing overheads.

An example of an objective is acquiring new customers to increase sales.

Reducing overheads can involve finding less expensive premises or outsourcing activities.

A company's values and principles are important for upholding integrity and business ethics.

Values statements define a firm's values and constrain how goals are pursued.

Values are important for attracting talented individuals who want to work for socially responsible employers.

Mission, vision, and values statements can be easily accessed on a company's website.

PayPal's mission is to build a convenient, secure, cost-effective payment solution.

Tesla's mission is to accelerate sustainable transport by bringing mass-market electric cars to market.

Walmart and IKEA follow a cost leadership business strategy with their mission statements.

Sony's mission statement is vague and does not present the market scope of the business.

Clear and memorable vision statements include Google's and LinkedIn's.

Coca-Cola's vision statement is too general and hard to remember.

Facebook's values include being impactful, dynamic, bold, open, and socially responsible.

Defining company values helps communicate to employees what the organization stands for.

Reading a firm's mission, vision, and values statements reveals its understanding of the world and business intentions.

Transcripts

when we talk about the future strategy

becomes a dynamic concept which allows

top managers to define goals and

objectives for the future and outline

how these goals and objectives will be

achieved a great way to formalize a

company's purposes goals and values is

to have formal mission and vision

statements both are related to the main

reason a company exists and help

stakeholders understand and keep that

reason in mind okay so the mission

statement addresses the question why do

we exist or what is the fundamental

reason for our organization's existence

and the vision statement describes the

desired future position of the company

and answers the questions what do we

want to achieve in the future and who do

we want to become when trying to define

the vision statement we should include

specific goals and objectives goals help

companies define what they want to

achieve while objectives are the

specific actions and measures for

attaining these goals by setting goals

managers commit themselves to a concrete

course of action that would allow them

to accomplish the company's vision goals

can target different areas like growth

profitability retention efficiency or

customer service usually goals are

expressed as a percentage when

considering financials a company's goal

could be to increase revenue and

decrease overheads which is stated in

the following way increase revenue by

10% and decrease overheads by 5% in 2017

an example of an objective that will

help you achieve a 10% increase of sales

is acquiring five new customers every

month

reducing overheads can be achieved by

finding new and less expensive office

premises or maybe outsourcing activities

both are specific objectives that might

allow a firm to reduce its overhead by

five percent another important question

company should answer is how are we

going to behave and what do we believe

in maximizing profit is important but it

is also important to uphold certain

values and principles this is why most

organizations have a set of values they

stay behind the role of this statement

is to define the firm's value

and place constraints on how the

organization pursues its goals this can

be important for the talented

individuals being recruited by the

company usually they're not only

interested in large compensation

packages but also want to work for an

employer that is socially responsible

and believes in integrity and business

ethics right obviously it is not hard to

find a firm's mission vision and values

all stakeholders can access these

statements easily just open a company's

website and click around you can locate

them in no time all right it's time for

a few practical examples let's look at

the way some large corporations have

stated their mission vision and value

statements some firms are very specific

when defining their mission statements

and clearly Express why the firm exists

and what kind of services it offers to

build the web's most convenient secure

cost-effective payment solution PayPal

to accelerate the advent of sustainable

transport by bringing compelling

mass-market electric cars to market as

soon as possible Tesla these are the

missions of PayPal and Tesla both

companies have a mission statement that

is laser-focused a statement that isn't

ambiguous is to the point and indicates

the company's main purpose but that's

not always the case the mission

statements of other companies show the

business strategy their organization

follows the two examples you see here

show that Walmart and IKEA follow a cost

leadership business strategy we save

people money so they can live better

Walmart at IKEA our vision is to create

a better everyday life for the many

people our business idea supports this

vision by offering a wide range of

well-designed

functional home furnishing products at

prices so low that as many people as

possible will be able to afford them

there is a third type of mission

statement as well that is polar to what

we've seen so far some companies are too

vague in their mission statements and do

not present the market scope of the

business to be a company that inspires

and fulfills your curiosity sony it is

our mission to continue to authoritative

ly provide access to

first services to stay relevant in

tomorrow's world yes not very clear

right the same reasoning applies to

selecting the vision statement it needs

to express what the company wants to

achieve the best vision statements are

concise clear and inspirational here are

examples of clear and memorable vision

statements to provide access to the

world's information in one click Google

to create economic opportunity for every

member of the global workforce LinkedIn

and here's an example of a vision

statement that is too general and hard

to remember our vision services the

framework for our roadmap and guides

every aspect of our business by

describing what we need to accomplish in

order to continue achieving sustainable

quality growth coca-cola ok that covers

mission and vision statements now values

let's look at the values of Facebook

these are the guiding principles for the

company's employees the company values

are impactful dynamic bold open and

socially responsible behavior these are

the five values that Facebook and its

employees should stand for defining

these principles helps the company

communicate to its employees what the

organization stands behind and how it

intends to do business it is interesting

to see how different companies

understand the world how they want to

behave in it and what they want to

achieve this is what we can learn by

reading a firm's mission vision and

value statements